NasdaqGM:CLFD

Stock Analysis Report

Executive Summary

Clearfield, Inc. manufactures, markets, and sells standard and custom passive connectivity products to the fiber-to-the-premises, enterprises, and original equipment manufacturers markets in the United States and internationally.

Rewards

Trading at 71.8% below its fair value

Earnings are forecast to grow 18.49% per year

Risk Analysis

CLFD passed our risk checks.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CLFD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

CLFD

3.9%

US Communications

1.7%

US Market


1 Year Return

26.9%

CLFD

7.2%

US Communications

23.2%

US Market

Return vs Industry: CLFD exceeded the US Communications industry which returned 6.7% over the past year.

Return vs Market: CLFD exceeded the US Market which returned 24.4% over the past year.


Shareholder returns

CLFDIndustryMarket
7 Day1.0%3.9%1.7%
30 Day-1.7%5.1%4.2%
90 Day19.5%5.2%11.9%
1 Year26.9%26.9%9.5%7.2%25.8%23.2%
3 Year-26.5%-26.5%54.0%44.2%52.8%42.9%
5 Year19.1%19.1%76.7%56.6%75.2%55.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Clearfield 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: CLFD ($13.73) is trading below our estimate of fair value ($48.73)

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


Price To Earnings Ratio

PE vs Industry: CLFD is poor value based on its PE Ratio (40.4x) compared to the Communications industry average (21.1x).

PE vs Market: CLFD is poor value based on its PE Ratio (40.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CLFD is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: CLFD is overvalued based on its PB Ratio (2.5x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

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

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLFD's forecast earnings growth (18.5% per year) is above the savings rate (1.7%).

Earnings vs Market: CLFD's earnings (18.5% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: CLFD's earnings are forecast to grow, but not significantly.

Revenue vs Market: CLFD's revenue (9.8% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: CLFD's revenue (9.8% 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 CLFD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Clearfield performed over the past 5 years?

-4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLFD has high quality earnings.

Growing Profit Margin: CLFD's current net profit margins (5.4%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: CLFD's earnings have declined by -4.1% per year over the past 5 years.

Accelerating Growth: CLFD's earnings growth over the past year (6.8%) exceeds its 5-year average (-4.1% per year).

Earnings vs Industry: CLFD earnings growth over the past year (6.8%) underperformed the Communications industry 12.6%.


Return on Equity

High ROE: CLFD's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Clearfield's financial position?


Financial Position Analysis

Short Term Liabilities: CLFD's short term assets ($42.5M) exceed its short term liabilities ($6.6M).

Long Term Liabilities: CLFD's short term assets ($42.5M) exceed its long term liabilities ($348.1K).


Debt to Equity History and Analysis

Debt Level: CLFD is debt free.

Reducing Debt: CLFD has not had any debt for past 5 years.

Debt Coverage: CLFD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CLFD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CLFD has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CLFD's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate CLFD'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 CLFD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CLFD'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 CLFD'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 Clearfield's salary, the management and board of directors tenure and is there insider trading?

8.4yrs

Average management tenure


CEO

Cheri Beranek (57yo)

12.6yrs

Tenure

US$537,009

Compensation

Ms. Cheryl P. Beranek, also known as Cheri has been the Chief Executive Officer and President at Clearfield, Inc. (formerly, APA Enterprises Inc) since June 28, 2007. Ms. Beranek has been a Director of Cle ...


CEO Compensation Analysis

Compensation vs Market: Cheri's total compensation ($USD335.45K) is below average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: Cheri's compensation has increased by more than 20% in the past year.


Management Age and Tenure

8.4yrs

Average Tenure

55yo

Average Age

Experienced Management: CLFD's management team is seasoned and experienced (8.4 years average tenure).


Board Age and Tenure

11.9yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CLFD's board of directors are seasoned and experienced ( 11.9 years average tenure).


Insider Trading

Insider Buying: CLFD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$124,34515 Nov 19
Ronald Roth
EntityIndividual
Role
Chairman of the Board
Chairman
Shares10,000
Max PriceUS$12.45

Ownership Breakdown

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


Management Team

  • Cheri Beranek (57yo)

    CEO, President & Director

    • Tenure: 12.6yrs
    • Compensation: US$537.01k
  • Dan Herzog (55yo)

    Chief Financial Officer

    • Tenure: 8.4yrs
    • Compensation: US$321.26k
  • Johnny Hill (53yo)

    Chief Operating Officer

    • Tenure: 11.3yrs
    • Compensation: US$539.25k
  • Kevin Morgan

    Chief Marketing Officer

    • Tenure: 3.4yrs
  • Rosa Burns

    Chief Revenue Officer

    • Tenure: 1.8yrs

Board Members

  • Ron Roth (74yo)

    Chairman

    • Tenure: 12.6yrs
    • Compensation: US$25.00k
  • Cheri Beranek (57yo)

    CEO, President & Director

    • Tenure: 12.6yrs
    • Compensation: US$537.01k
  • Chip Hayssen (67yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$28.12k
  • Pat Goepel (57yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$25.00k
  • Donald Hayward (61yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$25.00k
  • Roger Harding (64yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$25.00k

Company Information

Clearfield, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Clearfield, Inc.
  • Ticker: CLFD
  • Exchange: NasdaqGM
  • Founded: 1979
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$194.209m
  • Shares outstanding: 13.66m
  • Website: https://www.seeclearfield.com

Number of Employees


Location

  • Clearfield, Inc.
  • 7050 Winnetka Avenue North
  • Suite 100
  • Minneapolis
  • Minnesota
  • 55428
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLFDNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDAug 1986
AP7DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1986

Biography

Clearfield, Inc. manufactures, markets, and sells standard and custom passive connectivity products to the fiber-to-the-premises, enterprises, and original equipment manufacturers markets in the United States and internationally. The company offers FieldSmart, a series of panels, cabinets, wall boxes, and other enclosures. It also provides WaveSmart, which are optical components integrated for signal coupling, splitting, termination, multiplexing, demultiplexing, and attenuation for integration within its fiber management platform; and ODC outdoor active cabinet products. In addition, the company offers FieldShield, a fiber pathway and protection method for reducing the cost of broadband deployment; and YOURx platform that consists of hardened terminals, test access points, and various drop cable options for portions of the access network across various fiber drop cable media. Further, it provides CraftSmart, a line of optical protection field enclosures, including CraftSmart Fiber Protection Pedestals and CraftSmart Fiber Protection Vaults integrated solutions optimized to house FieldSmart products at the last mile access point of the network in above-grade or below-grade installations. Additionally, the company offers fiber and copper assemblies with an industry-standard or customer-specified configuration; and designs and manufactures custom solutions for in-the-box and network connectivity assemblies specific to that customer’s product line. It provides its fiber to anywhere platform for various incumbent local exchange carriers, competitive local exchange carriers, and MSO/cable TV companies, as well as the utility/municipality, enterprise, data center, and military markets. The company was formerly known as APA Enterprises, Inc. and changed its name to Clearfield, Inc. in January 2008. Clearfield, Inc. was founded in 1979 and is headquartered in Minneapolis, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 01:54
End of Day Share Price2020/01/16 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.