Clearwater Paper (CLW) AI Stock Analysis

• Market Cap: $449.79M
• Dividend Yield: N/A
• Average Volume (3M): 170.47K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.44
• Revenue Growth: -15.03%
• EPS Growth: -233.06%
• Country: US
• Employees: 2,200
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.36
• Shares Outstanding: 16,255,627
• 10 Day Avg. Volume: 141,008
• 30 Day Avg. Volume: 170,472
• PEG Ratio: -0.05
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.50
• Enterprise Value/Market Cap: 2.57
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 9.86
• Enterprise Value/Ebitda: 2.49
• 1Y Price Target: $37.00
• Price Target Upside: 32.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: $29.00 ▲(3.65%Upside)

Clearwater Paper's score is driven by robust guidance and strategic initiatives from the earnings call, balanced by mixed financial performance and technical indicators. The negative P/E ratio and lack of dividend yield are notable 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 makes money primarily through the production and sale of tissue and paperboard products. In the Consumer Products segment, revenue is generated from the sale of private label tissue products to retail grocery chains, warehouse clubs, and mass merchants. The Pulp and Paperboard segment contributes to earnings by producing bleached paperboard, which is sold to manufacturers of packaging for food, beverages, and other consumer goods. The company also benefits from strategic partnerships and long-term supply agreements with key customers, which help stabilize revenue streams and ensure ongoing demand for its products.

Clearwater Paper Financial Statement Overview

Summary

Clearwater Paper shows mixed financial performance with strong revenue growth and improved equity, but profitability and cash flow generation face challenges due to fluctuating margins and negative free cash flow. The company's manageable debt level reflects prudent financial management.

Income Statement

Clearwater Paper experienced significant fluctuations in revenue and profitability over recent periods. The TTM gross profit margin stands at 6.71%, with revenue showing a growth of 26.11% from the previous year. However, the company faced a negative EBIT margin of -1.28%, and the net profit margin of 9.90% suggests occasional profitability spikes. While EBITDA margin is positive at 0.36%, the volatility in operational efficiency is notable.

Balance Sheet

The debt-to-equity ratio improved to 0.34, indicating better leverage management, as total debt decreased while equity increased. The TTM return on equity is 20.65%, reflecting solid profitability relative to shareholders' equity. The equity ratio stands at 51.20%, highlighting a stable capital structure with a balanced approach between liabilities and equity.

Cash Flow

Cash flow presents challenges with a decline in free cash flow growth and negative free cash flow in TTM. The operating cash flow to net income ratio is low at 0.02, indicating insufficient cash generation relative to reported profits. Although past investing activities were substantial, recent periods show a strain in maintaining positive free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.75B	1.38B	2.08B	2.08B	1.77B	1.87B
Gross Profit	117.10M	76.10M	330.80M	256.70M	182.60M	294.20M
EBITDA	28.50M	-64.50K	275.30M	219.70M	106.40M	258.20M
Net Income	172.80M	196.30M	107.70M	46.00M	-28.00M	77.10M
Balance Sheet
Total Assets	1.63B	1.68B	1.67B	1.70B	1.69B	1.80B
Cash, Cash Equivalents and Short-Term Investments	44.00M	79.60M	42.00M	53.70M	25.20M	35.90M
Total Debt	292.90M	293.30M	478.50M	565.80M	639.20M	787.70M
Total Liabilities	797.30M	824.80M	1.00B	1.13B	1.18B	1.28B
Stockholders Equity	836.60M	854.50M	668.70M	572.00M	511.70M	521.10M
Cash Flow
Free Cash Flow	-126.30M	-55.20M	117.00M	116.70M	58.00M	207.40M
Operating Cash Flow	4.10M	61.40M	190.70M	150.20M	96.40M	247.00M
Investing Cash Flow	153.10M	167.70M	-73.70M	-33.50M	-25.10M	-39.60M
Financing Cash Flow	-168.60M	-191.40M	-129.40M	-88.60M	-82.00M	-192.90M

Clearwater Paper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLW, the sentiment is Positive. The current price of 27.98 is below the 20-day moving average (MA) of 28.22, above the 50-day MA of 27.42, and above the 200-day MA of 27.48, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 50.80 is Neutral, neither overbought nor oversold. The STOCH value of 52.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLW.

Clearwater Paper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VHI	66 Neutral	$468.00M	4.08	11.76%	1.91%	7.82%	19465.71%
RYAM	61 Neutral	$252.41M	―	-10.12%	―	2.20%	34.71%
Sector *	58 Neutral	HK$16.18B	4.23	-6.43%	9.52%	-3.39%	-61.30%
CLW	58 Neutral	$449.79M	33.74	-8.15%	―	-15.03%	-233.06%
MATV	56 Neutral	$355.11M	4.60	-66.90%	6.16%	-7.46%	-36.14%
RDUS	49 Neutral	$833.93M	―	-41.03%	2.54%	-2.75%	-339.59%
MERC	48 Neutral	$233.38M	―	-17.96%	8.60%	-1.37%	60.42%

Clearwater Paper Corporate Events

Clearwater Paper’s SVP Michael Urlick Resigns

On May 16, 2025, Michael Urlick announced his resignation from Clearwater Paper Company, where he served as Senior Vice President, Commercial. His departure, effective June 13, 2025, is to pursue a new opportunity, potentially impacting the company’s commercial strategies and leadership dynamics.

The most recent analyst rating on (CLW) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Clearwater Paper stock, see the CLW Stock Forecast page.

Clearwater Paper Amends Stock Incentive Plan

On July 1, 2025, Clearwater Paper Corporation will see a change in its executive team as Michael S. Gadd steps down as Senior Vice President, General Counsel, transitioning to a Senior Vice President role, while Marc D. Rome takes over as Senior Vice President, General Counsel. This transition is part of the company’s ongoing efforts to maintain leadership continuity and effective governance. Additionally, on May 8, 2025, the company’s stockholders approved an amendment to the 2017 Stock Incentive Plan, establishing a new share reserve and ensuring the continued alignment of executive compensation with shareholder interests. This approval reflects the company’s commitment to incentivizing its leadership and aligning their goals with those of the shareholders.

The most recent analyst rating on (CLW) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Clearwater Paper stock, see the CLW Stock Forecast page.

Clearwater Paper Announces CEO Employment Agreement

On April 1, 2025, Clearwater Paper Corporation announced a new employment agreement with its President and CEO, Arsen S. Kitch, effective the same day. The agreement extends for one year with automatic renewals and maintains Kitch’s current salary and bonus structure. It includes provisions for severance and benefits in case of termination or change of control, along with restrictions on post-employment activities.