NYSE:CLW

Stock Analysis Report

Executive Summary

Clearwater Paper Corporation produces and sells private label tissue and bleached paperboard products in the United States and internationally.

Rewards

Trading at 49.9% below its fair value

Earnings are forecast to grow 174.69% per year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Clearwater Paper's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CLW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

CLW

-0.1%

US Forestry

0.8%

US Market


1 Year Return

-22.2%

CLW

13.7%

US Forestry

17.8%

US Market

Return vs Industry: CLW underperformed the US Forestry industry which returned 13.7% over the past year.

Return vs Market: CLW underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

CLWIndustryMarket
7 Day-5.1%-0.1%0.8%
30 Day-3.6%-1.9%1.8%
90 Day20.8%12.7%4.1%
1 Year-22.2%-22.2%16.8%13.7%20.4%17.8%
3 Year-67.2%-67.2%16.1%7.2%45.9%36.4%
5 Year-69.2%-69.2%6.9%-5.3%68.1%49.6%

Price Volatility Vs. Market

How volatile is Clearwater Paper's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Clearwater Paper undervalued compared to its fair value and its price relative to the market?

49.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLW ($21.39) is trading below our estimate of fair value ($42.68)

Significantly Below Fair Value: CLW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CLW is unprofitable, so we can't compare its PE Ratio to the Forestry industry average.

PE vs Market: CLW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CLW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CLW is good value based on its PB Ratio (0.8x) compared to the US Forestry industry average (0.9x).


Next Steps

Future Growth

How is Clearwater Paper forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

174.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CLW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CLW's is expected to become profitable in the next 3 years.

Revenue vs Market: CLW's revenue (2.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CLW's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CLW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Clearwater Paper performed over the past 5 years?

-39.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLW is currently unprofitable.

Growing Profit Margin: CLW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CLW is unprofitable, and losses have increased over the past 5 years at a rate of -39% per year.

Accelerating Growth: Unable to compare CLW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CLW is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (3.7%).


Return on Equity

High ROE: CLW has a negative Return on Equity (-45.94%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Clearwater Paper's financial position?


Financial Position Analysis

Short Term Liabilities: CLW's short term assets ($464.3M) exceed its short term liabilities ($295.0M).

Long Term Liabilities: CLW's short term assets ($464.3M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: CLW's debt to equity ratio (217.5%) is considered high.

Reducing Debt: CLW's debt to equity ratio has increased from 115% to 217.5% over the past 5 years.

Debt Coverage: CLW's debt is not well covered by operating cash flow (3.4%).

Interest Coverage: CLW is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: CLW has a high level of physical assets or inventory.

Debt Coverage by Assets: CLW's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Clearwater Paper's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CLW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CLW's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CLW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CLW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CLW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Clearwater Paper's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Linda Massman (52yo)

6.9yrs

Tenure

US$4,045,905

Compensation

Ms. Linda K. Massman has been the President and Chief Executive Officer of Clearwater Paper Corporation since November 1, 2011 and January 1, 2013 respectively. Ms. Massman served as the Chief Financial Of ...


CEO Compensation Analysis

Compensation vs Market: Linda's total compensation ($USD4.05M) is above average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: Linda's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.2yrs

Average Tenure

53yo

Average Age

Experienced Management: CLW's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

59yo

Average Age

Experienced Board: CLW's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$98,58303 May 19
Linda Massman
EntityIndividual
Role
Chief Executive Officer
President
Shares5,500
Max PriceUS$17.92

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Robin Yim

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Michael Gadd (54yo)

    Senior VP

    • Tenure: 11yrs
    • Compensation: US$1.07m
  • Linda Massman (52yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$4.05m
  • Robert Hrivnak (59yo)

    Senior VP of Finance

    • Tenure: 0.7yrs
  • Kari Moyes (51yo)

    Senior Vice President of Human Resources

    • Tenure: 4.8yrs
    • Compensation: US$828.88k
  • Arsen Kitch (37yo)

    Senior VP & GM of Consumer Products Division

    • Tenure: 1.6yrs
    • Compensation: US$851.76k
  • Steve Bowden (55yo)

    Senior VP and GM of Pulp & Paperboard Division

    • Tenure: 1.2yrs
  • Shannon Myers

    Senior Director of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Bill Larsson (74yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: US$205.03k
  • Kevin Hunt (68yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$194.51k
  • John O'Donnell (59yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$177.53k
  • Joe Laymon (66yo)

    Independent Director

    • Tenure: 0.6yrs
  • Alex Toeldte (59yo)

    Chairman of the Board & Lead independent director

    • Tenure: 1.3yrs
    • Compensation: US$208.71k
  • John Corkrean (53yo)

    Independent Director

    • Tenure: 0.6yrs
  • Linda Massman (52yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$4.05m

Company Information

Clearwater Paper Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Clearwater Paper Corporation
  • Ticker: CLW
  • Exchange: NYSE
  • Founded:
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: US$353.273m
  • Shares outstanding: 16.52m
  • Website: https://www.clearwaterpaper.com

Number of Employees


Location

  • Clearwater Paper Corporation
  • 601 West Riverside Avenue
  • Suite 1100
  • Spokane
  • Washington
  • 99201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLWNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2008
5WCDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2008

Biography

Clearwater Paper Corporation produces and sells private label tissue and bleached paperboard products in the United States and internationally. It operates in two segments, Consumer Products, and Pulp and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 00:13
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.