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Clearwater Paper Corp (CLW)
:CLW
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Clearwater Paper
(NYSE:CLW)
Rating:58Neutral
Price Target:
$23.50
▲(4.44% Upside)
Clearwater Paper (CLW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$362.34M
Dividend YieldN/A
Average Volume (3M)230.75K
Price to Earnings (P/E)33.7
Beta (1Y)0.66
Revenue Growth-26.71%
EPS Growth-329.19%
CountryUS
Employees2,200
SectorBasic Materials
Sector Strength57
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)0.17
Shares Outstanding16,104,143
10 Day Avg. Volume371,968
30 Day Avg. Volume230,752
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.03
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit5.92
Enterprise Value/Ebitda26.50
Forecast
1Y Price Target
$36.00Price Target Upside60.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Clearwater Paper Business Overview & Revenue Model
Company DescriptionClearwater 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 MoneyClearwater 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 Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q2-2025)
| % Change Since: -23.57%|
Next Earnings Date:Feb 17, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a company navigating through challenging industry conditions with strong internal performance. Despite market-driven pricing declines and increased maintenance costs, Clearwater Paper is making strategic investments and cost reductions that position it well for long-term growth. The expansion into new paperboard markets and successful capital projects highlight their proactive approach. However, industry-wide challenges, including decreased shipments and utilization rates, suggest caution in the near term.Q2-2025 Updates
Positive Updates
Strong Second Quarter Performance
Clearwater Paper delivered $40 million of adjusted EBITDA in Q2 2025, which was within their guidance range of $35 million to $45 million. Net sales were $392 million, up 14% year-over-year, driven by the Augusta acquisition and increased shipments.
Successful Cost Reduction Efforts
The company achieved a significant reduction in SG&A expenses, down nearly 14% versus last year, reaching 6.7% of net sales. They are on track to deliver $30 million to $40 million in fixed cost reductions for 2025.
Strategic Share Buybacks
Clearwater Paper repurchased approximately $4 million of outstanding shares in Q2, totaling $18 million since November 2024 under their $100 million authorization.
Capital Project Completion
The company completed a major maintenance outage at the Cypress Bend mill, including a $45 million emissions control device installation, on time and within budget.
Expansion Plans in Paperboard Market
Clearwater is exploring expansion into CUK and CRB paperboard markets, with potential investments and acquisitions to broaden their product offering.
Negative Updates
Market-Driven Pricing Decline
Pricing was stable quarter-over-quarter but down approximately 3% year-over-year, reflecting broader market trends.
Industry Downcycle Impact
Industry shipments of SBS decreased by 4.6% year-over-year, with utilization rates falling to 83.1% due to new competitor capacity.
Significant Maintenance Costs
The Lewiston mill outage is expected to cost $23 million to $25 million, impacting production volumes and cost absorption.
Expected Tariff-Related Impact
For 2025, Clearwater expects $1 million to $2 million in tariff-related impacts across their direct and indirect spend.
Company Guidance
During the Clearwater Paper Second Quarter 2025 Earnings Call, the company provided guidance for the rest of the fiscal year, highlighting several key metrics. The company reported a net sales increase of 14% year-over-year to $392 million, primarily driven by the Augusta acquisition and increased shipments in their food service business, despite a 3% decline in pricing from the previous year. Adjusted EBITDA for the quarter was $40 million, within their guidance range of $35 million to $45 million, resulting in an adjusted EBITDA margin of 10.2%. Clearwater Paper also achieved $30 million to $40 million in fixed cost reductions, with SG&A expenses reduced to 6.7% of net sales. For the full year 2025, the company expects revenue between $1.5 billion and $1.6 billion, with capital expenditures anticipated to be $80 million to $90 million. The company plans to execute major maintenance at its Lewiston mill, with direct costs estimated at $23 million to $25 million, impacting third-quarter production volumes by approximately 5%. Adjusted EBITDA for the third quarter is projected to be between $10 million and $20 million. Clearwater Paper continues to focus on operational execution, cost reduction, and maintaining a strong balance sheet while navigating challenging industry conditions.Clearwater Paper Financial Statement Overview
Summary
Clearwater Paper shows mixed financial performance with revenue growth and improved leverage but faces challenges like negative EBIT margin and cash flow generation issues. The overall financial health is balanced with manageable debt levels.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.65
Positive
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.70
Positive
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.58
Neutral
| 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 | 27.80M | -64.50K | 275.30M | 219.70M | 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 | 478.50M | 565.80M | 639.20M | 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 | -180.80M | -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
Negative
22.50
Price Trends
28.23
Negative
26.98
Negative
27.44
Negative
Market Momentum
-1.49
Positive
27.59
Positive
5.21
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 22.5 is below the 20-day moving average (MA) of 27.74, below the 50-day MA of 28.23, and below the 200-day MA of 27.44, indicating a bearish trend. The MACD of -1.49 indicates Positive momentum. The RSI at 27.59 is Positive, neither overbought nor oversold. The STOCH value of 5.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLW.
Clearwater Paper Risk Analysis
Clearwater Paper disclosed 41 risk factors in its most recent earnings report. Clearwater Paper reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clearwater Paper Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $1.91B | 6.88 | 31.83% | 3.83% | 0.11% | 46.54% | |
61 Neutral | $9.64B | 7.20 | -0.14% | 3.12% | 3.13% | -55.58% | |
58 Neutral | $362.34M | 33.74 | -4.36% | ― | -26.71% | -329.19% | |
51 Neutral | $358.39M | 4.60 | -66.90% | 6.39% | -7.46% | -36.14% | |
48 Neutral | $217.02M | ― | -23.39% | 9.93% | -2.16% | 44.89% |
* Basic Materials Sector Average
Performance Comparison
CLW
Clearwater Paper
22.50
-12.71
-36.10%
MERC
Mercer International
3.24
-2.97
-47.83%
MATV
Mativ Holdings
6.56
-11.04
-62.73%
SLVM
Sylvamo Corp
46.96
-18.77
-28.56%
Clearwater Paper Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Clearwater Paper’s SVP Michael Urlick Resigns
Neutral
May 21, 2025
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.
Executive/Board ChangesShareholder Meetings
Clearwater Paper Amends Stock Incentive Plan
Neutral
May 12, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.