CLEARWATER PAPER CORP (CLW)
US18538R1032 - Common Stock
We assign a fundamental rating of 4 out of 10 to CLW. CLW was compared to 8 industry peers in the Paper & Forest Products industry. CLW has an excellent profitability rating, but there are some minor concerns on its financial health. CLW has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CLW had positive earnings in the past year.
In the past year CLW had a positive cash flow from operations.
In multiple years CLW reported negative net income over the last 5 years.
In the past 5 years CLW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CLW (1.29%) is better than 62.50% of its industry peers.
CLW has a better Return On Equity (4.81%) than 62.50% of its industry peers.
CLW has a better Return On Invested Capital (1.56%) than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CLW is in line with the industry average of 7.00%.
The 3 year average ROIC (6.14%) for CLW is well above the current ROIC(1.56%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 4.81% | ||
| ROIC | 1.56% |
ROA(3y)2.49%
ROA(5y)2.29%
ROE(3y)6.22%
ROE(5y)6.43%
ROIC(3y)6.14%
ROIC(5y)5.52%
1.3 Margins
CLW has a better Profit Margin (1.60%) than 62.50% of its industry peers.
In the last couple of years the Profit Margin of CLW has grown nicely.
With a decent Operating Margin value of 2.34%, CLW is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Operating Margin of CLW has grown nicely.
CLW has a Gross Margin (10.55%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CLW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.34% | ||
| PM (TTM) | 1.6% | ||
| GM | 10.55% |
OM growth 3Y0.47%
OM growth 5Y15.4%
PM growth 3Y7.81%
PM growth 5YN/A
GM growth 3Y0.29%
GM growth 5Y8.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CLW is destroying value.
The number of shares outstanding for CLW has been reduced compared to 1 year ago.
Compared to 5 years ago, CLW has about the same amount of shares outstanding.
Compared to 1 year ago, CLW has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that CLW is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.54, CLW is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
CLW has a debt to FCF ratio of 21.59. This is a negative value and a sign of low solvency as CLW would need 21.59 years to pay back of all of its debts.
The Debt to FCF ratio of CLW (21.59) is better than 62.50% of its industry peers.
CLW has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
CLW's Debt to Equity ratio of 1.72 is on the low side compared to the rest of the industry. CLW is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 21.59 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.21
WACC7.42%
2.3 Liquidity
CLW has a Current Ratio of 1.78. This is a normal value and indicates that CLW is financially healthy and should not expect problems in meeting its short term obligations.
CLW has a Current ratio of 1.78. This is comparable to the rest of the industry: CLW outperforms 50.00% of its industry peers.
A Quick Ratio of 1.13 indicates that CLW should not have too much problems paying its short term obligations.
CLW has a worse Quick ratio (1.13) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The earnings per share for CLW have decreased strongly by -40.98% in the last year.
The Earnings Per Share has been growing by 21.59% on average over the past years. This is a very strong growth
The Revenue has decreased by -4.34% in the past year.
The Revenue has been growing slightly by 3.85% on average over the past years.
EPS 1Y (TTM)-40.98%
EPS 3Y8.53%
EPS 5Y21.59%
EPS Q2Q%-84.02%
Revenue 1Y (TTM)-4.34%
Revenue growth 3Y3.68%
Revenue growth 5Y3.85%
Sales Q2Q%-24.35%
3.2 Future
CLW is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -31.69% yearly.
CLW is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.59% yearly.
EPS Next Y-90.87%
EPS Next 2Y-57.45%
EPS Next 3Y-31.69%
EPS Next 5YN/A
Revenue Next Year-5.8%
Revenue Next 2Y-13.9%
Revenue Next 3Y-9.59%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.05, the valuation of CLW can be described as reasonable.
Based on the Price/Earnings ratio, CLW is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.73, CLW is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 24.76, the valuation of CLW can be described as rather expensive.
CLW's Price/Forward Earnings is on the same level as the industry average.
CLW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 24.76 |
4.2 Price Multiples
CLW's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLW indicates a rather cheap valuation: CLW is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.41 | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
CLW has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CLW's earnings are expected to decrease with -31.69% in the coming years.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y-57.45%
EPS Next 3Y-31.69%
5. Dividend
5.1 Amount
CLW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CLEARWATER PAPER CORP
NYSE:CLW (12/20/2024, 8:04:00 PM)
After market: 30.24 -0.02 (-0.07%)30.26
+5.55 (+22.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners93.48%
Inst Owner Change-0.46%
Ins Owners5.74%
Ins Owner Change-0.01%
Market Cap501.41M
Analysts80
Price Target37.74 (24.72%)
Short Float %5.31%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-60.05%
Min EPS beat(2)-139.6%
Max EPS beat(2)19.49%
EPS beat(4)2
Avg EPS beat(4)-24.61%
Min EPS beat(4)-139.6%
Max EPS beat(4)27.55%
EPS beat(8)4
Avg EPS beat(8)-35.02%
EPS beat(12)7
Avg EPS beat(12)-19.22%
EPS beat(16)9
Avg EPS beat(16)-13.44%
Revenue beat(2)0
Avg Revenue beat(2)-19.07%
Min Revenue beat(2)-37.39%
Max Revenue beat(2)-0.75%
Revenue beat(4)1
Avg Revenue beat(4)-9.82%
Min Revenue beat(4)-37.39%
Max Revenue beat(4)2.16%
Revenue beat(8)2
Avg Revenue beat(8)-5.66%
Revenue beat(12)6
Avg Revenue beat(12)-2.97%
Revenue beat(16)7
Avg Revenue beat(16)-2.48%
PT rev (1m)0%
PT rev (3m)-22.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-128.95%
EPS NY rev (1m)0%
EPS NY rev (3m)205%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-27.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-17.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 24.76 | ||
| P/S | 0.25 | ||
| P/FCF | 9.41 | ||
| P/OCF | 3.09 | ||
| P/B | 0.75 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 10.16 |
EPS(TTM)3.01
EY9.95%
EPS(NY)1.22
Fwd EY4.04%
FCF(TTM)3.22
FCFY10.63%
OCF(TTM)9.78
OCFY32.33%
SpS121.04
BVpS40.11
TBVpS36.96
PEG (NY)N/A
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 4.81% | ||
| ROCE | 2.26% | ||
| ROIC | 1.56% | ||
| ROICexc | 1.59% | ||
| ROICexgc | 1.63% | ||
| OM | 2.34% | ||
| PM (TTM) | 1.6% | ||
| GM | 10.55% | ||
| FCFM | 2.66% |
ROA(3y)2.49%
ROA(5y)2.29%
ROE(3y)6.22%
ROE(5y)6.43%
ROIC(3y)6.14%
ROIC(5y)5.52%
ROICexc(3y)6.33%
ROICexc(5y)5.67%
ROICexgc(3y)6.37%
ROICexgc(5y)5.76%
ROCE(3y)8.91%
ROCE(5y)8.01%
ROICexcg growth 3Y7.53%
ROICexcg growth 5Y20.57%
ROICexc growth 3Y8.54%
ROICexc growth 5Y21.47%
OM growth 3Y0.47%
OM growth 5Y15.4%
PM growth 3Y7.81%
PM growth 5YN/A
GM growth 3Y0.29%
GM growth 5Y8.02%
F-Score4
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 21.59 | ||
| Debt/EBITDA | 7.62 | ||
| Cap/Depr | 105.53% | ||
| Cap/Sales | 5.42% | ||
| Interest Coverage | 0.93 | ||
| Cash Conversion | 108% | ||
| Profit Quality | 166.56% | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.54 |
F-Score4
WACC7.42%
ROIC/WACC0.21
Cap/Depr(3y)47.92%
Cap/Depr(5y)60.12%
Cap/Sales(3y)2.44%
Cap/Sales(5y)3.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.98%
EPS 3Y8.53%
EPS 5Y21.59%
EPS Q2Q%-84.02%
EPS Next Y-90.87%
EPS Next 2Y-57.45%
EPS Next 3Y-31.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.34%
Revenue growth 3Y3.68%
Revenue growth 5Y3.85%
Sales Q2Q%-24.35%
Revenue Next Year-5.8%
Revenue Next 2Y-13.9%
Revenue Next 3Y-9.59%
Revenue Next 5YN/A
EBIT growth 1Y-67.41%
EBIT growth 3Y4.17%
EBIT growth 5Y19.85%
EBIT Next Year0.49%
EBIT Next 3Y-7.44%
EBIT Next 5YN/A
FCF growth 1Y-60.95%
FCF growth 3Y-17.37%
FCF growth 5YN/A
OCF growth 1Y-1.7%
OCF growth 3Y-8.26%
OCF growth 5Y2.46%