Clearfield (CLFD) AI Stock Analysis

• Market Cap: $477.14M
• Dividend Yield: N/A
• Average Volume (3M): 106.06K
• Price to Earnings (P/E): 1920.0
• Beta (1Y): 1.27
• Revenue Growth: 5.72%
• EPS Growth: N/A
• Country: US
• Employees: 400
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.11
• Shares Outstanding: 13,806,049
• 10 Day Avg. Volume: 96,563
• 30 Day Avg. Volume: 106,061
• PEG Ratio: 0.33
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 3.41
• P/FCF Ratio: 44.89
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 10.60
• Enterprise Value/Ebitda: 55.61
• 1Y Price Target: $49.25
• Price Target Upside: 40.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: $35.00 ▼(-0.40% Downside)

Clearfield's overall stock score reflects a mixed financial performance with strong revenue growth but concerns over profitability and cash flow stability. Technical analysis suggests a neutral to slightly positive trend, while valuation metrics indicate potential overvaluation. The positive earnings call provides some optimism, but challenges in certain segments and supply chain issues remain risks.

Positive Factors

Revenue Growth

The 15% YoY growth in the Clearfield segment indicates strong market demand and effective sales strategies, supporting long-term revenue expansion.

Gross Margin Improvement

Improved gross margins reflect enhanced operational efficiency and cost management, which can sustain profitability over the long term.

Product Innovation

New product innovations expand Clearfield's market reach and application scope, potentially driving future revenue and competitive advantage.

Negative Factors

Profitability Challenges

Negative profitability metrics indicate operational inefficiencies, which could hinder long-term financial health and investor confidence.

Supply Chain Challenges

Persistent supply chain issues can disrupt operations and delay product deliveries, impacting customer satisfaction and revenue stability.

Cash Flow Stability

Inconsistent cash flow conversion can strain liquidity and limit the company's ability to reinvest in growth opportunities or manage debt.

Clearfield Business Overview & Revenue Model

Company Description

Clearfield, Inc. is a leading provider of fiber management and connectivity solutions for communication service providers in the telecommunications industry. Headquartered in Minneapolis, Minnesota, the company specializes in providing innovative products and services that facilitate the deployment and management of fiber optic networks. Clearfield's core offerings include fiber distribution and management systems, enclosures, and accessories designed to streamline the installation and maintenance of fiber networks, catering to both residential and commercial sectors.

How the Company Makes Money

Clearfield generates revenue primarily through the sales of its fiber management and connectivity products. The company's revenue model is built on selling a wide range of hardware and accessories, including optical network terminals, fiber distribution panels, and various enclosures designed for network installations. Key revenue streams include direct sales to telecommunications service providers, utilities, and other organizations involved in building out fiber networks. Additionally, Clearfield benefits from partnerships with major telecommunications companies, which often involve joint projects and collaborations that can lead to significant contract revenues. The increasing demand for high-speed internet and the ongoing expansion of fiber optic networks, driven by advancements in technology and the need for reliable communication infrastructure, further contribute to Clearfield's earnings.

Clearfield Financial Statement Overview

Summary

Clearfield's financial performance is mixed. The income statement shows strong revenue growth but negative profitability metrics, indicating operational challenges. The balance sheet is strong with low leverage, but declining returns on equity suggest inefficiencies. Cash flow is inconsistent, reflecting issues in converting income into cash.

Income Statement

Clearfield's income statement shows significant volatility. The TTM data indicates a massive revenue growth rate, but profitability metrics such as EBIT and net profit margins are negative, suggesting operational challenges. Historical data shows fluctuating revenue growth and declining margins, indicating instability in revenue generation and cost management.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating financial stability and low leverage. However, the return on equity has been declining, suggesting inefficiencies in generating returns from equity. The equity ratio remains healthy, supporting a stable financial structure.

Cash Flow

Cash flow analysis reveals moderate growth in free cash flow, but the operating cash flow to net income ratio is inconsistent, indicating potential issues in converting income into cash. The free cash flow to net income ratio is positive, yet fluctuating, reflecting challenges in maintaining consistent cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	179.32M	166.71M	268.72M	270.88M	140.76M	93.07M
Gross Profit	48.28M	28.89M	85.28M	112.95M	61.18M	37.91M
EBITDA	9.21M	-8.34M	43.34M	67.23M	28.04M	11.58M
Net Income	200.00K	-12.45M	32.53M	49.36M	20.33M	7.29M
Balance Sheet
Total Assets	314.71M	315.27M	355.52M	229.13M	125.91M	95.30M
Cash, Cash Equivalents and Short-Term Investments	117.23M	130.99M	168.11M	22.45M	23.59M	27.03M
Total Debt	21.67M	18.36M	16.48M	36.85M	2.53M	2.79M
Total Liabilities	50.23M	39.51M	40.35M	81.55M	22.09M	12.54M
Stockholders Equity	264.48M	275.76M	315.16M	147.58M	103.82M	82.75M
Cash Flow
Free Cash Flow	22.70M	12.66M	11.63M	-8.15M	8.86M	4.85M
Operating Cash Flow	31.88M	22.22M	20.01M	1.00M	10.90M	6.66M
Investing Cash Flow	-7.16M	-6.90M	-112.25M	-8.20M	-13.60M	-41.13K
Financing Cash Flow	-16.23M	-36.91M	113.42M	10.65M	-536.00K	-246.73K

Clearfield Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLFD, the sentiment is Negative. The current price of 35.14 is above the 20-day moving average (MA) of 35.12, above the 50-day MA of 33.74, and above the 200-day MA of 35.04, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 47.40 is Neutral, neither overbought nor oversold. The STOCH value of 40.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLFD.

Clearfield Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKTI	80 Outperform	$244.85M	21.40	39.51%	―	4.63%	328.61%
CRNT	70 Outperform	$212.77M	15.63	8.61%	―	5.06%	29.66%
GILT	69 Neutral	$880.94M	34.96	7.49%	―	19.67%	12.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CLFD	55 Neutral	$477.14M	1,920.00	0.07%	―	5.72%	―
AVNW	54 Neutral	$298.04M	255.82	0.52%	―	6.50%	-88.62%
AMPG	53 Neutral	$78.18M	―	-30.53%	―	58.04%	21.09%

Clearfield Corporate Events

Clearfield Director Patrick F. Goepel to Step Down

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.