Clearwater Paper (CLW) AI Stock Analysis

• Market Cap: $273.93M
• Dividend Yield: N/A
• Average Volume (3M): 210.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• 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: 147,592
• 30 Day Avg. Volume: 210,171
• 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: 2.37
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 5.73
• Enterprise Value/Ebitda: 36.64
• 1Y Price Target: $30.00
• Price Target Upside: 80.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.84
• Revenue Forecast (FY): $1.54B

• Rating: 48 Neutral
• Price Target: $17.50 ▲(5.42% Upside)

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 manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally. It operates through two segments, Pulp and Paperboard, and Consumer Products. The Pulp and Paperboard segment offers folding cartons, liquid packaging, cups and plates, blister and carded packaging products, top sheet and commercial printing items, and softwood pulp products, as well as custom sheeting, slitting, and cutting of paperboard products. It sells its products to packaging converters, folding carton converters, merchants, and commercial printers. The Consumer Products segment provides a line of at-home tissue products, including bath tissues, paper towels, facial tissues, and napkins; recycled fiber value grade products; and away-from-home tissues. This segment sells its products to retailers and wholesale distributors, including grocery, club, mass merchants, and discount stores. Clearwater Paper Corporation was incorporated in 2005 and is headquartered in Spokane, Washington.

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 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: 16.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 16.6 is below the 20-day moving average (MA) of 18.19, below the 50-day MA of 19.48, and below the 200-day MA of 24.45, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 28.09 is Positive, neither overbought nor oversold. The STOCH value of 5.77 is Positive, 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	$1.76B	10.22	18.81%	4.02%	-8.92%	-32.30%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MATV	58 Neutral	$655.63M	―	-68.33%	3.80%	0.39%	-505.56%
CLW	48 Neutral	$273.93M	―	-10.47%	―	-21.76%	-1214.73%
MERC	45 Neutral	$105.83M	―	-39.37%	14.24%	-5.85%	9.13%

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.