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Clearfield (CLFD)
NASDAQ:CLFD
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Clearfield
(NASDAQ:CLFD)
Rating:68Neutral
Price Target:
$37.00
▼( -4.86% Downside)
Positive Factors
Customer Segment Growth
Strong Large Regional segment sales benefited from a significant customer pull-in.
Market Positioning
Management's tone was positive as CLFD prepares to capitalize on a 'U-shaped' recovery in fiber build-outs.
Revenue Performance
CLFD delivered outstanding results as revenue beat consensus by 22%.
Negative Factors
Backlog Concerns
Backlog decreased -40% year over year on shortening lead-times.
Guidance and Expectations
F25 guidance was maintained just below consensus with conservative sales expectations.
Clearfield (CLFD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$536.36M
Dividend YieldN/A
Average Volume (3M)140.18K
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth-2.14%
EPS Growth44.13%
CountryUS
Employees400
SectorTechnology
Sector Strength75
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.09
Shares Outstanding13,830,950
10 Day Avg. Volume237,715
30 Day Avg. Volume140,182
Financial Highlights & Ratios
PEG Ratio-1.79
Price to Book (P/B)1.59
Price to Sales (P/S)0.00
P/FCF Ratio34.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$46.00Price Target Upside18.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Clearfield Business Overview & Revenue Model
Company DescriptionClearfield, Inc. (CLFD) is a prominent provider in the telecommunications industry, focusing on delivering innovative fiber optic management and connectivity solutions. The company primarily serves broadband service providers, including community broadband, municipal networks, utilities, and large national carriers. Clearfield's core product offerings include fiber distribution systems, optical components, and fiber optic cables designed to enhance the deployment of high-speed internet networks.
How the Company Makes MoneyClearfield generates revenue through the sale of its fiber optic management and connectivity products. The company's key revenue streams include the sale of fiber distribution hubs, optical components, and fiber optic cables. Clearfield's financial performance is driven by its ability to meet the growing demand for high-speed broadband networks, which is propelled by increased data consumption and the expansion of 5G infrastructure. Additionally, the company benefits from its strategic partnerships with broadband service providers and its focus on providing customizable, scalable solutions that cater to a wide range of customer needs within the telecommunications sector.
Clearfield Financial Statement Overview
Summary
Clearfield demonstrates mixed financial performance with a strong balance sheet and cash reserves but faces challenges in income generation and growth consistency. Operational inefficiencies and revenue volatility pose risks, while low debt and a solid asset base provide a foundation for potential recovery.Income Statement
Clearfield's income statement shows a challenging period with declining revenues and profitability. The TTM results indicate a significant net loss, which is a substantial decrease from prior periods. The negative EBIT and EBITDA margins highlight operational inefficiencies or increased costs. Historical annual data suggest revenue volatility and fluctuating profit margins, indicating potential instability in the business environment.55
Neutral
Balance Sheet
The balance sheet is relatively strong with a high equity ratio and substantial cash reserves. The company has a low debt-to-equity ratio, indicating conservative leverage, which suggests financial stability. However, the stockholders' equity has been decreasing, which is a concern for long-term growth potential. Despite this, the overall asset base has grown, reflecting potential for recovery and development.75
Positive
Cash Flow
Clearfield's cash flow statement reveals adequate operating cash flow, but the free cash flow growth is inconsistent. The operating cash flow to net income ratio is healthy, suggesting good cash generation relative to net income. However, the negative free cash flow growth in recent periods signals challenges in managing capital expenditures and financing activities effectively.65
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 167.95M | 166.71M | 268.72M | 270.88M | 140.76M | 93.07M | Gross Profit |
| 32.37M | 28.89M | 85.28M | 112.95M | 61.18M | 37.91M | EBIT |
| -19.04M | -23.22M | 37.29M | 63.82M | 25.23M | 8.38M | EBITDA |
| -4.34M | -8.34M | 43.34M | 67.23M | 27.54M | 10.81M | Net Income Common Stockholders |
| -9.09M | -12.45M | 32.53M | 49.36M | 20.33M | 7.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.10M | 130.99M | 168.11M | 22.45M | 23.59M | 27.03M | Total Assets |
| 19.34M | 315.27M | 355.52M | 229.13M | 125.91M | 95.30M | Total Debt |
| 0.00 | 18.36M | 22.77M | 36.85M | 2.53M | 2.79M | Net Debt |
| -4.00M | 2.19M | -15.06M | 20.20M | -10.69M | -13.65M | Total Liabilities |
| 1.66M | 39.51M | 40.35M | 81.55M | 22.09M | 12.54M | Stockholders Equity |
| 17.68M | 275.76M | 315.16M | 147.58M | 103.82M | 82.75M |
| Cash Flow | Free Cash Flow | ||||
| 12.32M | 12.66M | 11.63M | -8.15M | 8.86M | 4.85M | Operating Cash Flow |
| 21.55M | 22.22M | 20.01M | 1.00M | 10.90M | 6.66M | Investing Cash Flow |
| 5.59M | -6.90M | -112.25M | -8.20M | -13.60M | -41.13K | Financing Cash Flow |
| -31.12M | -36.91M | 113.42M | 10.65M | -536.00K | -246.73K |
Clearfield Technical Analysis
Positive
38.89
Price Trends
30.72
Positive
32.37
Positive
33.93
Positive
Market Momentum
2.69
Negative
75.30
Negative
81.79
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLFD, the sentiment is Positive. The current price of 38.89 is above the 20-day moving average (MA) of 34.01, above the 50-day MA of 30.72, and above the 200-day MA of 33.93, indicating a bullish trend. The MACD of 2.69 indicates Negative momentum. The RSI at 75.30 is Negative, neither overbought nor oversold. The STOCH value of 81.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLFD.
Clearfield Risk Analysis
Clearfield disclosed 25 risk factors in its most recent earnings report. Clearfield 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
Clearfield Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $321.58M | 23.15 | 4.79% | ― | 13.49% | -39.61% | |
69 Neutral | $212.33M | 9.04 | 15.02% | ― | 11.94% | 377.86% | |
68 Neutral | $536.36M | ― | -0.68% | ― | -2.14% | 44.13% | |
67 Neutral | $257.40M | ― | -1.32% | ― | 12.39% | -123.62% | |
61 Neutral | $11.41B | 10.19 | -7.05% | 2.95% | 7.46% | -10.52% | |
58 Neutral | $643.69M | ― | -66.95% | ― | -10.18% | 75.30% | |
56 Neutral | $262.96M | 15.72 | 9.33% | 4.02% | -1.13% | 61.49% |
* Technology Sector Average
Performance Comparison
CLFD
Clearfield
38.89
2.30
6.29%
ADTN
Adtran
7.87
2.65
50.77%
AUDC
Audiocodes
8.88
-0.78
-8.07%
AVNW
Aviat Networks
20.88
-9.57
-31.43%
CRNT
Ceragon Networks
2.33
-0.33
-12.41%
GILT
Gilat
5.64
0.40
7.63%
Clearfield Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q2-2025)
| % Change Since: 22.22%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter for Clearfield, with notable revenue growth and financial performance exceeding expectations. The company highlighted significant achievements in supply chain management and product innovation. However, challenges remain in the Nestor segment and potential cost increases due to tariffs. Overall, the positive aspects of the call outweigh the challenges.Q2-2025 Updates
Positive Updates
Record Revenue Growth
Clearfield reported second quarter fiscal 2025 net sales of $47.2 million, marking a 28% increase over the previous year and exceeding the guidance range. The Clearfield segment net sales increased by 47% year-over-year.
Strong Financial Performance
Net income per share was $0.09, above the guidance range, indicating a significant improvement from the previous year. Clearfield successfully converted quoting activity into revenue at a faster pace and higher rate than anticipated.
Innovative Product Recognition
The FieldSmart FiberFlex 600 active cabinet received recognition among the best in the industry by the 2025 Lightwave + BTR Innovation Reviews in the optical category.
Supply Chain Flexibility
Clearfield's proactive diversification of its supply chain, including dual sourcing from U.S. and Mexico, helped maintain stable product availability despite fluctuating trade policies.
Negative Updates
Nestor Segment Decline
Net sales from the Nestor segment decreased by 30% year-over-year, reflecting ongoing challenges in this area.
Potential Tariff Impact
The evolving tariff situation is anticipated to increase costs, although Clearfield does not expect it to materially affect operating results. The company is implementing strategies to mitigate these impacts.
Company Guidance
During Clearfield's Fiscal Second Quarter 2025 Conference Call, the company reported net sales of $47.2 million, marking a 28% increase from the previous year and surpassing their guidance range of $37 million to $40 million. The Clearfield segment experienced a notable 47% year-over-year sales increase, while the Nestor segment saw a 30% decrease. Net income per share was $0.09, also above the guidance range. The company anticipates third-quarter net sales between $45 million and $50 million, with net income per share projected between $0.01 and $0.08. For the fiscal year 2025, Clearfield expects net sales to range from $170 million to $185 million. The call highlighted Clearfield's strategic supply chain diversification, which mitigates potential impacts from evolving tariff policies, and emphasized opportunities from government programs like BEAD and E-ACAM. The FieldSmart FiberFlex 600 active cabinet received industry recognition, further validating Clearfield's approach to flexible, scalable solutions.Clearfield Corporate Events
Executive/Board Changes
Clearfield Director Patrick F. Goepel to Step Down
Neutral
Jan 6, 2025
Patrick F. Goepel, a director at Clearfield, Inc., announced he will not seek re-election to the Board of Directors at the 2025 annual meeting, citing a desire to focus on other business opportunities. His decision is not related to any disagreements with the company’s operations, and his term will conclude at the 2025 shareholder meeting.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.