Clearwater Paper (CLW) AI Stock Analysis

• Market Cap: $344.95M
• Dividend Yield: N/A
• Average Volume (3M): 253.57K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.76
• Revenue Growth: -26.71%
• EPS Growth: -329.19%
• Country: US
• Employees: 2,200
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.17
• Shares Outstanding: 16,104,143
• 10 Day Avg. Volume: 197,877
• 30 Day Avg. Volume: 253,574
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.14
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 5.92
• Enterprise Value/Ebitda: 8.96
• 1Y Price Target: $29.50
• Price Target Upside: 37.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 59 Neutral
• Price Target: $23.00 ▲(7.23% Upside)

Clearwater Paper's overall score reflects a mixed financial performance with strong net profitability but significant operational and cash flow challenges. The technical analysis indicates a bearish trend, while the valuation raises concerns due to a negative P/E ratio. The earnings call provided a balanced view with positive strategic initiatives but highlighted industry challenges and maintenance costs as risks.

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 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	1.55B	1.38B	2.08B	2.08B	1.77B	1.87B
Gross Profit	124.50M	76.10M	330.80M	256.70M	182.60M	294.20M
EBITDA	82.20M	-900.00K	117.80M	212.00M	106.40M	258.20M
Net Income	201.30M	196.30M	107.70M	46.00M	-28.00M	77.10M
Balance Sheet
Total Assets	1.64B	1.68B	1.67B	1.70B	1.69B	1.80B
Cash, Cash Equivalents and Short-Term Investments	46.70M	79.60M	42.00M	53.70M	25.20M	35.90M
Total Debt	329.10M	321.60M	472.60M	613.70M	698.00M	787.70M
Total Liabilities	804.00M	824.80M	1.00B	1.13B	1.18B	1.28B
Stockholders Equity	836.70M	854.50M	668.70M	572.00M	511.70M	521.10M
Cash Flow
Free Cash Flow	-181.20M	-55.20M	117.00M	116.70M	58.00M	207.40M
Operating Cash Flow	-45.60M	61.40M	190.70M	150.20M	96.40M	247.00M
Investing Cash Flow	856.50M	167.70M	-73.70M	-33.50M	-25.10M	-39.60M
Financing Cash Flow	-804.20M	-191.40M	-129.40M	-88.60M	-82.00M	-192.90M

Clearwater Paper Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.45
• 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 21.45 is below the 20-day moving average (MA) of 22.00, below the 50-day MA of 25.97, and below the 200-day MA of 27.02, indicating a bearish trend. The MACD of -1.36 indicates Negative momentum. The RSI at 36.24 is Neutral, neither overbought nor oversold. The STOCH value of 37.10 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	65 Neutral	$1.80B	8.54	24.37%	3.98%	-4.03%	-5.27%
Sector *	61 Neutral	$10.31B	6.18	0.76%	2.94%	3.30%	-36.34%
CLW	59 Neutral	$344.95M	33.74	-4.36%	―	-26.71%	-329.19%
MATV	58 Neutral	$669.74M	4.60	-69.18%	3.25%	-0.62%	-39.91%
MERC	43 Neutral	$217.02M	―	-23.39%	9.26%	-2.16%	44.89%

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.