CLEARWATER PAPER CORP (CLW)
US18538R1032 - Common Stock
We assign a fundamental rating of 4 out of 10 to CLW. CLW was compared to 9 industry peers in the Paper & Forest Products industry. CLW has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
The reported net income has been mixed in the past 5 years: CLW reported negative net income in multiple years.
CLW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.84%, CLW is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
CLW has a better Return On Equity (6.92%) than 77.78% of its industry peers.
CLW's Return On Invested Capital of 4.21% is fine compared to the rest of the industry. CLW outperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLW is in line with the industry average of 6.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 6.92% | ||
| ROIC | 4.21% |
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
The Profit Margin of CLW (2.16%) is better than 66.67% of its industry peers.
CLW's Profit Margin has improved in the last couple of years.
CLW's Operating Margin of 5.93% is fine compared to the rest of the industry. CLW outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of CLW has grown nicely.
The Gross Margin of CLW (13.15%) is comparable to the rest of the industry.
CLW's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.93% | ||
| PM (TTM) | 2.16% | ||
| GM | 13.15% |
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
CLW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CLW has less shares outstanding
CLW has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for CLW has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that CLW is in the distress zone and has some risk of bankruptcy.
CLW has a better Altman-Z score (1.71) than 66.67% of its industry peers.
The Debt to FCF ratio of CLW is 7.23, which is on the high side as it means it would take CLW, 7.23 years of fcf income to pay off all of its debts.
CLW's Debt to FCF ratio of 7.23 is fine compared to the rest of the industry. CLW outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.73 is on the high side and indicates that CLW has dependencies on debt financing.
CLW's Debt to Equity ratio of 1.73 is in line compared to the rest of the industry. CLW outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 7.23 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.58
WACC7.28%
2.3 Liquidity
CLW has a Current Ratio of 1.73. 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 (1.73) which is in line with its industry peers.
CLW has a Quick Ratio of 1.73. This is a bad value and indicates that CLW is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.74, CLW is doing worse than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.32% over the past year.
Measured over the past years, CLW shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.59% on average per year.
CLW shows a decrease in Revenue. In the last year, the revenue decreased by -0.01%.
The Revenue has been growing slightly by 3.85% on average over the past years.
EPS 1Y (TTM)2.32%
EPS 3Y8.53%
EPS 5Y21.59%
EPS Q2Q%-106.9%
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y3.68%
Revenue growth 5Y3.85%
Sales Q2Q%11.78%
3.2 Future
The Earnings Per Share is expected to decrease by -26.53% on average over the next years. This is quite bad
Based on estimates for the next years, CLW will show a decrease in Revenue. The Revenue will decrease by -7.89% on average per year.
EPS Next Y-97.01%
EPS Next 2Y-55.56%
EPS Next 3Y-26.53%
EPS Next 5YN/A
Revenue Next Year13.84%
Revenue Next 2Y-12.6%
Revenue Next 3Y-7.89%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.80 indicates a rather cheap valuation of CLW.
100.00% of the companies in the same industry are more expensive than CLW, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 31.73, CLW is valued rather cheaply.
The Price/Forward Earnings ratio is 21.09, which indicates a rather expensive current valuation of CLW.
The rest of the industry has a similar Price/Forward Earnings ratio as CLW.
CLW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.8 | ||
| Fwd PE | 21.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CLW indicates a rather cheap valuation: CLW is cheaper than 88.89% of the companies listed in the same industry.
100.00% of the companies in the same industry are more expensive than CLW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.96 | ||
| EV/EBITDA | 6.87 |
4.3 Compensation for Growth
The decent profitability rating of CLW may justify a higher PE ratio.
CLW's earnings are expected to decrease with -26.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.27
EPS Next 2Y-55.56%
EPS Next 3Y-26.53%
5. Dividend
5.1 Amount
CLW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CLEARWATER PAPER CORP
NYSE:CLW (10/14/2024, 8:19:51 PM)
After market: 28.12 0 (0%)28.12
+0.36 (+1.3%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap467.64M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.8 | ||
| Fwd PE | 21.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.84% | ||
| ROE | 6.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.93% | ||
| PM (TTM) | 2.16% | ||
| GM | 13.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.32%
EPS 3Y8.53%
EPS 5Y
EPS Q2Q%
EPS Next Y-97.01%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y3.68%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y