Clearwater Paper (CLW) AI Stock Analysis

• Market Cap: $283.24M
• Dividend Yield: N/A
• Average Volume (3M): 206.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -21.76%
• EPS Growth: -1214.73%
• Country: US
• Employees: 2,200
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -3.34
• Shares Outstanding: 16,104,143
• 10 Day Avg. Volume: 192,420
• 30 Day Avg. Volume: 206,551
• PEG Ratio: 0.03
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.36
• P/FCF Ratio: -9.05
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $30.00
• Price Target Upside: 69.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: $17.50 ▼(-0.91% Downside)

Clearwater Paper's overall stock score reflects mixed financial performance with strong revenue growth but operational and cash flow challenges. Technical indicators suggest a bearish trend, while valuation metrics highlight potential undervaluation. The earnings call provided some optimism with cost reductions, but significant losses and industry challenges remain concerns.

Clearwater Paper Business Overview & Revenue Model

Company Description

Clearwater Paper Corporation (CLW) is a leading manufacturer and supplier of paper and wood products, primarily serving the consumer and commercial markets. The company operates through two main segments: Consumer Products and Pulp and Paperboard. Clearwater Paper's core products include private label tissue products, paper towels, toilet paper, and other paper goods, along with bleached and unbleached pulp, and paperboard products used in various applications such as packaging.

How the Company Makes Money

Clearwater Paper generates revenue primarily through the sale of its consumer products and pulp products. The Consumer Products segment contributes a significant portion of the company's revenue by providing branded and private label tissue products to major retailers and distributors. The Pulp and Paperboard segment generates income by supplying pulp and paperboard to various industries, including packaging and printing. Revenue is also bolstered by long-term contracts with key customers, which provide stability and predictability in cash flows. Additionally, Clearwater Paper benefits from strategic partnerships with retail giants, enhancing its market reach and sales volume. Factors such as raw material costs, operational efficiency, and market demand for paper products also play critical roles in the company's overall financial performance.

Clearwater Paper Financial Statement Overview

Summary

Clearwater Paper demonstrates strong net profitability and equity returns, but faces challenges with operational efficiency and cash flow management. Revenue growth is positive, yet negative EBITDA and cash flow metrics suggest potential operational and liquidity issues. The balance sheet remains robust with moderate leverage.

Income Statement

Clearwater Paper shows a mixed performance in its income statement. The TTM gross profit margin is approximately 8.03%, which is below the industry average, indicating challenges in maintaining cost efficiency. However, the net profit margin for TTM is high at 12.98%, driven by substantial net income, suggesting effective cost control beyond gross profit. Revenue growth in the latest TTM is 12.05%, reflecting a positive growth trend from the previous year, yet EBIT and EBITDA margins are negative, pointing to potential operational inefficiencies.

Balance Sheet

The balance sheet of Clearwater Paper is relatively strong, with a debt-to-equity ratio of 0.39, indicating moderate leverage. The equity ratio is 51.00%, showcasing a solid equity base relative to total assets. Return on Equity (ROE) is notably high at 24.06%, driven by strong net income, which is a positive indicator of management's efficiency in using equity. However, the company's total assets have shown a mild decline, which could be a concern if the trend continues.

Cash Flow

Cash flow dynamics present challenges, with a negative free cash flow in the TTM period, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, showing that operational cash generation is lagging behind accounting profits. Moreover, the free cash flow to net income ratio is also negative, highlighting potential cash management issues despite reported profits. The free cash flow growth rate is -227.54%, reflecting a significant drop compared to the previous period, which may pose future operational risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.56B	1.38B	2.08B	2.08B	1.77B	1.87B
Gross Profit	113.10M	76.10M	330.80M	256.70M	182.60M	294.20M
EBITDA	27.00M	-900.00K	117.80M	212.00M	106.40M	258.20M
Net Income	142.20M	196.30M	107.70M	46.00M	-28.00M	77.10M
Balance Sheet
Total Assets	1.56B	1.68B	1.67B	1.70B	1.69B	1.80B
Cash, Cash Equivalents and Short-Term Investments	34.40M	79.60M	42.00M	53.70M	25.20M	35.90M
Total Debt	78.80M	321.60M	472.60M	613.70M	698.00M	787.70M
Total Liabilities	778.50M	824.80M	1.00B	1.13B	1.18B	1.28B
Stockholders Equity	783.00M	854.50M	668.70M	572.00M	511.70M	521.10M
Cash Flow
Free Cash Flow	-134.70M	-55.20M	117.00M	116.70M	58.00M	207.40M
Operating Cash Flow	-27.80M	61.40M	190.70M	150.20M	96.40M	247.00M
Investing Cash Flow	873.10M	167.70M	-73.70M	-33.50M	-25.10M	-39.60M
Financing Cash Flow	-846.80M	-191.40M	-129.40M	-88.60M	-82.00M	-192.90M

Clearwater Paper Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLW, the sentiment is Negative. The current price of 17.66 is below the 20-day moving average (MA) of 19.44, below the 50-day MA of 20.64, and below the 200-day MA of 25.49, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 29.34 is Positive, neither overbought nor oversold. The STOCH value of 37.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLW.

Clearwater Paper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLVM	―	$1.73B	8.23	24.37%	4.31%	-4.03%	-5.27%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MATV	―	$595.38M	―	-69.18%	3.67%	-0.62%	-39.91%
CLW	―	$283.24M	-1.77	-10.47%	―	-21.76%	-1214.73%
MERC	―	$154.06M	-1.41	-23.39%	12.30%	-2.16%	44.89%

Clearwater Paper Corporate Events

Clearwater Paper Corp Navigates Challenges in Earnings Call

Clearwater Paper Corp’s recent earnings call painted a mixed picture for the company. On one hand, there were notable improvements in EBITDA and cost reductions, and the company maintained a strong liquidity position. However, these positives were overshadowed by a significant net loss due to goodwill impairment, ongoing industry utilization challenges, and a strategic decision to defer a potentially lucrative investment project due to current market conditions.

Clearwater Paper’s Q3 2025: Sales Rise Amid Challenges

Clearwater Paper Corporation is a leading independent supplier of bleached paperboard in North America, providing sustainable packaging solutions for consumer goods and food service applications. In its third quarter of 2025, Clearwater Paper reported net sales of $399 million, a slight increase from the previous year, driven by a 3% rise in shipment volumes. However, the company faced a net loss of $53 million, primarily due to a significant non-cash goodwill impairment charge. Despite these challenges, the company achieved an adjusted net loss of $8 million, showing improvement from the previous year’s adjusted net loss. Key financial metrics for the third quarter included an adjusted EBITDA of $18 million, a decrease from the previous year, attributed to maintenance costs and reduced sales prices, although these were partially offset by higher sales volumes and cost reduction efforts. The company successfully completed major maintenance at its Lewiston mill and is on track to exceed its fixed cost reduction targets for the year. Looking ahead, Clearwater Paper remains focused on reducing fixed costs and maintaining market share amidst an oversupplied market, with management optimistic about generating significant cash flows and strong returns on capital in the long term.

Clearwater Paper Reports Q3 2025 Financial Results

Clearwater Paper Corporation reported its third-quarter 2025 financial results, highlighting net sales of $399 million, a 1% increase from the previous year, driven by a 3% rise in shipment volumes. However, the company faced a net loss of $53 million due to a $45 million non-cash goodwill impairment, primarily from past acquisitions. Despite these challenges, Clearwater Paper successfully completed major maintenance at its Lewiston mill and is on track to exceed its fixed cost reduction target for the year. The company continues to focus on cost reduction and maintaining market share amid an oversupplied SBS market, aiming for long-term cash flow and returns.

The most recent analyst rating on (CLW) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on Clearwater Paper stock, see the CLW Stock Forecast page.

Clearwater Paper Corp’s Strategic Moves Amid Challenges

Clearwater Paper Corp Navigates Industry Challenges with Strategic Moves

Clearwater Paper Corp Reports Strong Q2 2025 Earnings

Clearwater Paper Corporation is a leading manufacturer and supplier of bleached paperboard, primarily serving independent converters across North America, with services including custom sheeting, slitting, and cutting. The company recently released its earnings report for the quarter ending June 30, 2025, showcasing a notable improvement in financial performance compared to the previous year.