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Fundamental analysis: Clearwater Paper Corporation (CLW)

Awarener score: 6.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Very good) and growth (Lacking), and the company's inclination to return cash to the stockholders (Modest).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

  • Business has been slightly shrinking. It's been last-in-rank when measured against peer companies.
  • Clearwater Paper Corporation business trend stability is very good. The higher the stability, the lower the risk. It looks top-notch against rivals.

Margins score: 4.8

  • CLW profit margins -on goods and services sold- are usually very poor. They stand worse than most rival companies.
  • Business profit on sales tends to be sufficient. It's weak when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain lacking compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still somewhat worse than similar companies.
  • Profits -before income taxes- are usually hardly sufficient considering total sales, and remain below average when measured against rivals.
  • Total net profit tends to be hardly sufficient when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 1.7

  • Clearwater Paper Corporation profit -on goods and services sold- has been growing at a normal pace. It's been in a weak position compared to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares top tier when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 10.0

  • CLW managed to get a credit on income taxes in the past years, even though it earned money. It's been bottom tier against peers.
  • The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
  • We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 5.5

  • Clearwater Paper Corporation usually gets sufficient returns on the resources it controls. It proves below average when measured against peer firms.
  • The company normally gets hardly sufficient proceeds -on the resources directly invested in the business-. They remain lacking compared to similar companies.
  • Profitability -in relation to owned resources- is usually modest. It ranks below average when measured against competitors.
  • In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 5.5

  • CLW usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands below average when measured against rival firms.
  • The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is almost average when measured against industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.0

  • Clearwater Paper Corporation has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
  • The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be lacking compared to similar firms.
  • A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains mediocre against rival firms.
  • Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks almost average when measured against rivals.
  • For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's in a very weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is worse than most similar enterprises.
  • Usually, sales are on a month credit. It still ranks encouraging in relation to peers.
  • Normally has approximately somewhat more than two months of sales worth in inventory. It comes up as lacking compared to competitors.
  • On average, it takes higher than four months from the purchase to charging customers. It happens to be slightly better than peers.
  • Pays suppliers mostly in cash. It ranks weak when measured against industry peers.
  • The company pays its suppliers roughly three months before charging its customers, so there's sufficient money invested in working capital. It's rather normal in relation to similar companies.
  • Usual business earnings are mostly consumed by net interest expenses. Creditors may be earning money by assuming risks, but stockholders not so much. Profitability must increase, lest the firm risks only working for creditors' benefit. It stands worse than most rival firms.
  • Business earnings have usually been low when measured against loans taken. Even cutting back reinvesting in the business, it could take more than seven years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
  • Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks rather normal in relation to similar firms.
  • Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 6.5

  • Clearwater Paper Corporation looks expensive in relation to profits and financial position. It happens to be last-in-rank when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a slight improvement compared to peers.
  • In the past twelve months, the company generated some good free funds in relation to the stock price, which stands slightly better than similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still similar to industry firms.
  • In the past twelve months, the company has slightly enlarged the pool of investors by issuing new shares. The pie of earnings will now be split among a little more stockholders. It came up close to average when compared to peer ventures.
  • The company is drowned in loans. It almost belongs more to the creditors than the stockholders. The situation may be dire. It looks bottom tier against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks last-in-rank when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks excellent in relation to rival firms.
  • The relation between the stock price and accounting book value might be reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains somewhat better than peer firms.
  • In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be below average when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 5.6


CLW logos

Company at a glance: Clearwater Paper Corporation (CLW)

Sector, industry: Basic Materials, Paper & Paper Products

Market Cap: 0.66 billions

Revenues TTM: 2.04 billions

Clearwater Paper Corporation manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally. It operates through two segments, Pulp and Paperboard, and Consumer Products. The Pulp and Paperboard segment offers folding cartons, liquid packaging, cups and plates, blister and carded packaging products, top sheet and commercial printing items, and softwood pulp products, as well as custom sheeting, slitting, and cutting of paperboard products. It sells its products to packaging converters, folding carton converters, merchants, and commercial printers. The Consumer Products segment provides a line of at-home tissue products, including bath tissues, paper towels, facial tissues, and napkins; recycled fiber value grade products; and away-from-home tissues. This segment sells its products to retailers and wholesale distributors, including grocery, club, mass merchants, and discount stores. Clearwater Paper Corporation was incorporated in 2005 and is headquartered in Spokane, Washington.

Awarener score: 6.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Very good) and growth (Lacking), and the company's inclination to return cash to the stockholders (Modest).