Clearwater Paper (CLW) AI Stock Analysis

• Market Cap: $290.29M
• Dividend Yield: N/A
• Average Volume (3M): 172.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• 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: 16,038,338
• 10 Day Avg. Volume: 138,514
• 30 Day Avg. Volume: 172,501
• PEG Ratio: -0.05
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.36
• P/FCF Ratio: -9.05
• Enterprise Value/Market Cap: 2.23
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 5.73
• Enterprise Value/Ebitda: 36.64
• 1Y Price Target: $30.00
• Price Target Upside: 67.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.84
• Revenue Forecast (FY): $1.54B

• Rating: 46 Neutral
• Price Target: $17.50 ▼(-2.23% Downside)

Clearwater Paper's overall stock score is primarily impacted by its weak financial performance and valuation concerns. The company's operational inefficiencies and negative cash flow metrics are significant risks. While there are some positive signals from the earnings call and technical analysis, they are not enough to offset the broader financial challenges.

Positive Factors

Revenue Growth

The increase in net sales reflects the company's ability to drive growth through higher shipment volumes, indicating strong demand for its products.

Cost Reduction Initiatives

Successful cost reduction efforts enhance profitability and operational efficiency, positioning the company for improved financial performance.

Strong Liquidity Position

A robust liquidity position provides financial flexibility to navigate industry challenges and invest in growth opportunities.

Negative Factors

Negative Profitability

Persistent losses indicate operational inefficiencies and challenge the company's ability to generate sustainable profits.

Industry Utilization Challenges

Lower utilization rates can lead to margin pressure and reduced profitability, impacting long-term business performance.

SBS Market Oversupply

Excess capacity in the market could depress prices and margins, creating headwinds for revenue growth and profitability.

Clearwater Paper Business Overview & Revenue Model

Company Description

Clearwater Paper Corporation (CLW) is a leading manufacturer of paper and wood products, primarily serving the consumer and commercial markets. The company operates in two main segments: Consumer Products and Pulp and Paperboard. Clearwater Paper produces a range of products, including private label tissue, paper towels, napkins, and other household paper goods, as well as bleached paperboard for various packaging applications. With a commitment to sustainability, the company sources raw materials responsibly and focuses on innovative solutions in the paper industry.

How the Company Makes Money

Clearwater Paper generates revenue primarily through the sale of its consumer products and pulp and paperboard products. The Consumer Products segment contributes significantly to its earnings, with revenue derived from the sale of tissue products under private label brands to major retailers. The Pulp and Paperboard segment generates income from the sale of bleached paperboard used in packaging applications, serving a diverse range of industries. Additionally, Clearwater Paper benefits from economies of scale in production and distribution, which helps to enhance its profitability. Strategic partnerships with retailers and distributors further augment its market reach, while the company's commitment to sustainability and efficient manufacturing practices play a crucial role in maintaining competitive pricing and driving revenue growth.

Clearwater Paper Financial Statement Overview

Summary

Clearwater Paper shows mixed financial performance. Strong revenue growth and profitability margins are positive, but operational inefficiencies and cash flow challenges pose risks. The company's low leverage is a positive aspect, but negative cash flow trends require attention.

Income Statement

Clearwater Paper's income statement shows mixed results. The TTM (Trailing-Twelve-Months) data indicates a modest gross profit margin of 7.27% and a net profit margin of 9.14%, which is a positive sign of profitability. However, the EBIT margin is negative at -4.38%, indicating operational challenges. Revenue growth is strong at 36.8% TTM, suggesting a positive trajectory in sales. Despite these strengths, the negative EBIT margin and fluctuating profitability over the years highlight potential instability.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.10 TTM, indicating low leverage. The return on equity is healthy at 17.18% TTM, demonstrating effective use of equity capital. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing. Overall, the company appears to be managing its debt well, but the absence of certain metrics could obscure potential risks.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow and free cash flow in the TTM period. The free cash flow to net income ratio is high at 4.85, indicating reliance on non-operational sources for cash flow. The negative free cash flow growth rate of -25.66% TTM suggests declining cash generation capabilities. These factors highlight potential liquidity concerns and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.56B	1.38B	1.14B	2.08B	1.77B	1.87B
Gross Profit	113.10M	76.10M	200.70M	256.70M	182.60M	294.20M
EBITDA	17.70M	-900.00K	117.80M	212.00M	104.50M	253.60M
Net Income	-164.60M	-110.90M	107.70M	46.00M	-28.10M	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	54.40M	25.20M	35.90M
Total Debt	347.90M	321.60M	472.60M	613.70M	698.00M	787.70M
Total Liabilities	778.60M	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	873.50M	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: 17.90
• 50DMA: Negative
• 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 CLW, the sentiment is Negative. The current price of 17.9 is above the 20-day moving average (MA) of 17.75, below the 50-day MA of 18.46, and below the 200-day MA of 23.64, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 58.58 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	69 Neutral	$1.98B	11.52	18.81%	3.59%	-8.92%	-32.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MATV	56 Neutral	$708.67M	―	-68.33%	3.17%	0.39%	-505.56%
MERC	47 Neutral	$139.32M	―	-39.37%	10.71%	-5.85%	9.13%
CLW	46 Neutral	$290.29M	―	-10.47%	―	-21.76%	-1214.73%

Clearwater Paper Corporate Events

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.