NYSE:CLW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Good value with questionable track record.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: CLW's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-5.4%

CLW

3.1%

US Forestry

2.1%

US Market


1 Year Return

61.8%

CLW

-5.0%

US Forestry

19.8%

US Market

Return vs Industry: CLW exceeded the US Forestry industry which returned -5% over the past year.

Return vs Market: CLW exceeded the US Market which returned 19.7% over the past year.


Shareholder returns

CLWIndustryMarket
7 Day-5.4%3.1%2.1%
30 Day-2.1%19.4%8.1%
90 Day3.0%1.9%6.0%
1 Year61.8%61.8%-0.5%-5.0%22.5%19.8%
3 Year-25.0%-25.0%-5.6%-14.7%46.5%36.8%
5 Year-24.2%-24.2%26.8%10.1%96.9%75.3%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLW ($35.61) is trading below our estimate of fair value ($134.35)

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


Price To Earnings Ratio

PE vs Industry: CLW is good value based on its PE Ratio (10.4x) compared to the US Forestry industry average (11.5x).

PE vs Market: CLW is good value based on its PE Ratio (10.4x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: CLW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CLW's PB Ratio (1.2x) is in line with the US Forestry industry average.


Next Steps

Future Growth

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

-45.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLW's earnings are forecast to decline over the next 3 years (-45.3% per year).

Earnings vs Market: CLW's earnings are forecast to decline over the next 3 years (-45.3% per year).

High Growth Earnings: CLW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CLW's revenue (1.2% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: CLW's revenue (1.2% 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?

-32.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLW has high quality earnings.

Growing Profit Margin: CLW became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CLW's earnings have declined by 32.1% per year over the past 5 years.

Accelerating Growth: CLW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CLW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (29.7%).


Return on Equity

High ROE: CLW's Return on Equity (11.4%) is considered low.


Next Steps

Financial Health

How is Clearwater Paper's financial position?


Financial Position Analysis

Short Term Liabilities: CLW's short term assets ($492.0M) exceed its short term liabilities ($239.6M).

Long Term Liabilities: CLW's short term assets ($492.0M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: CLW's debt to equity ratio (154.4%) is considered high.

Reducing Debt: CLW's debt to equity ratio has increased from 124.9% to 154.4% over the past 5 years.

Debt Coverage: CLW's debt is well covered by operating cash flow (32.4%).

Interest Coverage: CLW's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Arsen Kitch (38 yo)

0.58

Tenure

US$923,189

Compensation

Mr. Arsen S. Kitch has been President, Chief Executive Officer and Director of Clearwater Paper Corporation since April 1, 2020. He was Senior Vice President and General Manager of Consumer Products at Cle...


CEO Compensation Analysis

Compensation vs Market: Arsen's total compensation ($USD923.19K) is below average for companies of similar size in the US market ($USD1.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Arsen Kitch
CEO, President & Director0.58yrUS$923.19k0.032%
$ 190.4k
Michael Gadd
Senior VP11.92yrsUS$1.22m0.27%
$ 1.6m
Kari Moyes
Senior Vice President of Human Resources5.75yrsUS$931.13k0.035%
$ 209.0k
Michael Murphy
Senior VP & CFO0.58yrno datano data
Rebecca Barckley
VP, Corporate Controller & Chief Accounting Officer0.83yrno data0.0060%
$ 35.6k
Robin Yim
Vice President of Investor Relationsno datano datano data
Shannon Myers
Senior Director of Corporate Communicationsno datano datano data
Steve Bowden
Senior VP and GM of Pulp & Paperboard Division2.08yrsno data0.0099%
$ 58.4k
Joanne Shufelt
Senior VP & GM of Consumer Products0.42yrno data0.032%
$ 191.1k

0.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CLW's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Arsen Kitch
CEO, President & Director0.58yrUS$923.19k0.032%
$ 190.4k
William Larsson
Independent Director11.92yrsUS$213.18k0.0060%
$ 35.6k
Kevin Hunt
Independent Director7.83yrsUS$214.68kno data
John O'Donnell
Independent Director4.58yrsUS$177.18kno data
Joe Laymon
Independent Director1.5yrsUS$148.94kno data
Alexander Toeldte
Chairman of the Board & Lead independent director2.17yrsUS$290.68kno data
John Corkrean
Independent Director1.5yrsUS$154.89kno data
Linda Massman
Director7.83yrsUS$3.85m1.13%
$ 6.6m
Ann Nelson
Director0.50yrno datano data

2.2yrs

Average Tenure

60yo

Average Age

Experienced Board: CLW's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CLW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$590.173m
  • Shares outstanding: 16.57m
  • 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. The company operates through two segments, Consumer Products;...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:32
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.