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Clearfield (CLFD)
NASDAQ:CLFD

Clearfield (CLFD) AI Stock Analysis

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Clearfield

(NASDAQ:CLFD)

Rating:68Neutral
Price Target:
$37.00
▼(-6.42%Downside)
Clearfield shows strong momentum driven by positive earnings call results and technical indicators, despite pressures on revenue and profitability. Its robust balance sheet supports recovery, but high valuation concerns and challenges in the Nestor segment temper the overall outlook.
Positive Factors
Government Programs
Reduced regulations for government programs and inventory trends should allow CLFD to capitalize on the C25 build season.
Market Positioning
Management's tone was positive as CLFD prepares to capitalize on a 'U-shaped' recovery in fiber build-outs.
Revenue Performance
CLFD delivered outstanding results as revenue beat consensus by 22%.
Negative Factors
Backlog
Backlog decreased -40% year over year on shortening lead-times.
Customer Inventories
Customer inventories have normalized, and backlog grew by 31%, indicating a positive inflection.
Guidance
F25 guidance was maintained just below consensus with conservative sales expectations.

Clearfield (CLFD) vs. SPDR S&P 500 ETF (SPY)

Clearfield Business Overview & Revenue Model

Company DescriptionClearfield, Inc. manufactures, markets, and sells standard and custom passive connectivity products to the fiber-to-the-premises, enterprises, and original equipment manufacturers markets in the United States and internationally. The company offers FieldSmart, a series of panels, cabinets, wall boxes, and other enclosures. It also provides WaveSmart, which are optical components integrated for signal coupling, splitting, termination, multiplexing, demultiplexing, and attenuation for integration within its fiber management platform; and outdoor cabinet and fiber active cabinet products. The company offers StreetSmart, a portfolio of fiber management products; FieldShield, a fiber pathway and protection method for reducing the cost of broadband deployment; and YOURx platform that consists of hardened terminals, test access points, and various drop cable options for portions of the access network across various fiber drop cable media. It also provides CraftSmart, a line of optical protection field enclosures, including CraftSmart Fiber Protection Pedestals and CraftSmart Fiber Protection Vaults integrated solutions optimized to house FieldSmart products at the last mile access point of the network in above-grade or below-grade installations. The company offers fiber and copper assemblies with an industry-standard or customer-specified configuration; and designs and manufactures custom solutions for in-the-box and network connectivity assemblies specific to that customer's product line. It provides its fiber to anywhere platform for various incumbent local exchange carriers, competitive local exchange carriers, wireless operators, and multiple systems operators and cable TV companies, as well as the utility/municipality, enterprise, and data center markets. The company was formerly known as APA Enterprises, Inc. and changed its name to Clearfield, Inc. in January 2008. Clearfield, Inc. was founded in 1979 and is headquartered in Minneapolis, Minnesota.
How the Company Makes MoneyClearfield generates revenue primarily through the sale of its fiber management and connectivity solutions. The company's key revenue streams include the sale of fiber distribution systems, cabinets, panels, and enclosures to telecommunications companies, broadband service providers, and other network operators. Clearfield's products enable these entities to efficiently manage fiber optic networks, reducing installation time and operational costs. The company also benefits from ongoing contracts and partnerships with major telecommunications providers and network operators, contributing to a steady stream of income. Additionally, Clearfield invests in research and development to innovate and expand its product offerings, ensuring it remains competitive in the rapidly evolving telecommunications market.

Clearfield Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q2-2025)
|
% Change Since: 24.26%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter for Clearfield, with notable revenue growth and financial performance exceeding expectations. The company highlighted significant achievements in supply chain management and product innovation. However, challenges remain in the Nestor segment and potential cost increases due to tariffs. Overall, the positive aspects of the call outweigh the challenges.
Q2-2025 Updates
Positive Updates
Record Revenue Growth
Clearfield reported second quarter fiscal 2025 net sales of $47.2 million, marking a 28% increase over the previous year and exceeding the guidance range. The Clearfield segment net sales increased by 47% year-over-year.
Strong Financial Performance
Net income per share was $0.09, above the guidance range, indicating a significant improvement from the previous year. Clearfield successfully converted quoting activity into revenue at a faster pace and higher rate than anticipated.
Innovative Product Recognition
The FieldSmart FiberFlex 600 active cabinet received recognition among the best in the industry by the 2025 Lightwave + BTR Innovation Reviews in the optical category.
Supply Chain Flexibility
Clearfield's proactive diversification of its supply chain, including dual sourcing from U.S. and Mexico, helped maintain stable product availability despite fluctuating trade policies.
Negative Updates
Nestor Segment Decline
Net sales from the Nestor segment decreased by 30% year-over-year, reflecting ongoing challenges in this area.
Potential Tariff Impact
The evolving tariff situation is anticipated to increase costs, although Clearfield does not expect it to materially affect operating results. The company is implementing strategies to mitigate these impacts.
Company Guidance
During Clearfield's Fiscal Second Quarter 2025 Conference Call, the company reported net sales of $47.2 million, marking a 28% increase from the previous year and surpassing their guidance range of $37 million to $40 million. The Clearfield segment experienced a notable 47% year-over-year sales increase, while the Nestor segment saw a 30% decrease. Net income per share was $0.09, also above the guidance range. The company anticipates third-quarter net sales between $45 million and $50 million, with net income per share projected between $0.01 and $0.08. For the fiscal year 2025, Clearfield expects net sales to range from $170 million to $185 million. The call highlighted Clearfield's strategic supply chain diversification, which mitigates potential impacts from evolving tariff policies, and emphasized opportunities from government programs like BEAD and E-ACAM. The FieldSmart FiberFlex 600 active cabinet received industry recognition, further validating Clearfield's approach to flexible, scalable solutions.

Clearfield Financial Statement Overview

Summary
Clearfield faces declining revenues and profitability pressures, but maintains robust financial stability with a strong balance sheet and liquidity. Effective cash management is evident, though operational efficiency improvements are necessary for growth.
Income Statement
45
Neutral
The income statement shows a challenging period for Clearfield with declining revenue and profitability. The TTM data reveals a negative EBIT and net income, indicating operational difficulties. However, there is a slight improvement in gross profit margin compared to the previous year, suggesting potential stabilization in cost management.
Balance Sheet
75
Positive
Clearfield's balance sheet remains strong with a high equity ratio and a low debt-to-equity ratio, indicating solid financial stability. The substantial increase in cash and cash equivalents enhances liquidity, providing a buffer against operational losses. The return on equity is currently negative due to net losses, which is a concern.
Cash Flow
60
Neutral
The cash flow statement highlights positive free cash flow and a strong operating cash flow to net income ratio, suggesting effective cash management despite net losses. However, the free cash flow growth rate is modest, reflecting limited cash generation from operations.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
178.21M166.71M268.72M270.88M140.76M93.07M
Gross Profit
43.73M28.89M85.28M112.95M61.18M37.91M
EBIT
-9.03M-23.22M37.29M63.82M25.23M8.38M
EBITDA
1.94M-8.34M43.34M67.23M27.54M10.81M
Net Income Common Stockholders
-1.85M-12.45M32.53M49.36M20.33M7.29M
Balance SheetCash, Cash Equivalents and Short-Term Investments
111.99M130.99M168.11M22.45M23.59M27.03M
Total Assets
310.86M315.27M355.52M229.13M125.91M95.30M
Total Debt
20.41M18.36M22.77M36.85M2.53M2.79M
Net Debt
-8.44M2.19M-15.06M20.20M-10.69M-13.65M
Total Liabilities
44.96M39.51M40.35M81.55M22.09M12.54M
Stockholders Equity
265.90M275.76M315.16M147.58M103.82M82.75M
Cash FlowFree Cash Flow
17.92M12.66M11.63M-8.15M8.86M4.85M
Operating Cash Flow
27.82M22.22M20.01M1.00M10.90M6.66M
Investing Cash Flow
3.17M-6.90M-112.25M-8.20M-13.60M-41.13K
Financing Cash Flow
-17.85M-36.91M113.42M10.65M-536.00K-246.73K

Clearfield Technical Analysis

Technical Analysis Sentiment
Positive
Last Price39.54
Price Trends
50DMA
32.78
Positive
100DMA
32.95
Positive
200DMA
33.94
Positive
Market Momentum
MACD
1.66
Positive
RSI
69.19
Neutral
STOCH
85.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLFD, the sentiment is Positive. The current price of 39.54 is above the 20-day moving average (MA) of 38.53, above the 50-day MA of 32.78, and above the 200-day MA of 33.94, indicating a bullish trend. The MACD of 1.66 indicates Positive momentum. The RSI at 69.19 is Neutral, neither overbought nor oversold. The STOCH value of 85.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLFD.

Clearfield Risk Analysis

Clearfield disclosed 25 risk factors in its most recent earnings report. Clearfield reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Clearfield Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$217.66M9.3615.02%11.94%377.86%
68
Neutral
$544.80M-0.68%-2.14%44.13%
67
Neutral
$287.23M-1.32%12.39%-123.62%
64
Neutral
$278.99M16.689.33%3.83%-1.13%61.49%
64
Neutral
$360.92M25.824.79%13.49%-39.61%
62
Neutral
$11.93B10.60-7.51%3.00%7.40%-8.09%
59
Neutral
$640.62M-66.95%-10.18%75.30%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CLFD
Clearfield
39.54
-0.56
-1.40%
ADTN
Adtran
7.84
2.77
54.64%
AUDC
Audiocodes
9.23
-0.49
-5.04%
AVNW
Aviat Networks
22.79
-7.23
-24.08%
CRNT
Ceragon Networks
2.40
-0.13
-5.14%
GILT
Gilat
6.29
1.05
20.04%

Clearfield Corporate Events

Executive/Board Changes
Clearfield Director Patrick F. Goepel to Step Down
Neutral
Jan 6, 2025

Patrick F. Goepel, a director at Clearfield, Inc., announced he will not seek re-election to the Board of Directors at the 2025 annual meeting, citing a desire to focus on other business opportunities. His decision is not related to any disagreements with the company’s operations, and his term will conclude at the 2025 shareholder meeting.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.