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CLFD Stock Analysis - Clearfield, Inc. AI Rating

CLFD Nasdaq Telephone & Telegraph Apparatus MN CIK: 0000796505
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
62% Confidence

📊 CLFD Key Takeaways

Revenue: $34.3M
Net Margin: -1.8%
Free Cash Flow: $17.1M
Current Ratio: 12.55x
Debt/Equity: 0.00x
EPS: $-0.04
AI Rating: HOLD with 62% confidence

Investment Thesis

Clearfield demonstrates strong revenue growth (+19.6% YoY) and excellent cash generation (FCF of $17.1M with 49.9% FCF margin), indicating quality sales expansion. However, the company is currently unprofitable with negative operating margins (-5.3%) and declining net losses, suggesting it is in a transitional phase between growth investment and profitability.

CLFD Strengths

  • + Strong revenue growth of 19.6% year-over-year shows market demand and expanding customer base
  • + Exceptional free cash flow generation ($17.1M FCF margin of 49.9%) demonstrates sustainable cash economics despite operating losses
  • + Fortress balance sheet with zero long-term debt, $13.9M cash, and current ratio of 12.55x provides financial flexibility
  • + Improving net loss trajectory (up 35.4% YoY) with narrowing losses suggests path toward profitability

CLFD Risks

  • ! Operating losses of -$1.8M indicate core business operations are not yet profitable despite revenue growth
  • ! Negative operating margin of -5.3% and negative ROE/ROA suggest operational challenges in converting sales to earnings
  • ! Gross margin of 33.2% may be under pressure as company scales, indicating potential competitive or cost challenges
  • ! High insider activity (12 Form 4 filings in 90 days) requires monitoring for potential insider selling or stock option activity

Key Metrics to Watch

CLFD Financial Metrics

Revenue
$34.3M
Net Income
$-614.0K
EPS (Diluted)
$-0.04
Free Cash Flow
$17.1M
Total Assets
$268.1M
Cash Position
$13.9M

💡 AI Analyst Insight

The 49.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 12.55x current ratio provides a solid financial cushion.

CLFD Profitability Ratios

Gross Margin 33.2%
Operating Margin -5.3%
Net Margin -1.8%
ROE -0.2%
ROA -0.2%
FCF Margin 49.9%

CLFD vs Default Sector

How Clearfield, Inc. compares to Default sector averages

Net Margin
CLFD -1.8%
vs
Sector Avg 12.0%
CLFD Sector
ROE
CLFD -0.2%
vs
Sector Avg 15.0%
CLFD Sector
Current Ratio
CLFD 12.5x
vs
Sector Avg 1.8x
CLFD Sector
Debt/Equity
CLFD 0.0x
vs
Sector Avg 0.7x
CLFD Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CLFD Balance Sheet & Liquidity

Current Ratio
12.55x
Quick Ratio
9.50x
Debt/Equity
0.00x
Debt/Assets
6.9%
Interest Coverage
-6.63x
Long-term Debt
$0.0

CLFD 5-Year Financial Trend

CLFD 5-year financial data: Year 2021: Revenue $140.8M, Net Income $7.3M, EPS $0.53. Year 2022: Revenue $270.9M, Net Income $7.3M, EPS $0.53. Year 2023: Revenue $270.9M, Net Income $20.3M, EPS $1.47. Year 2024: Revenue $270.9M, Net Income $49.4M, EPS $3.55. Year 2025: Revenue $225.7M, Net Income $32.5M, EPS $2.17.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Clearfield, Inc.'s revenue has grown significantly by 60% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.17 reflects profitable operations.

CLFD Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
49.9%
Free cash flow / Revenue

CLFD Quarterly Performance

Quarterly financial performance data for Clearfield, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $29.7M -$614.0K $-0.04
Q3 2025 $48.8M -$447.0K $-0.04
Q2 2025 $36.9M -$579.0K $-0.04
Q1 2025 $34.2M -$1.9M $-0.13
Q3 2024 $48.8M -$447.0K $-0.04
Q2 2024 $36.9M -$5.9M $-0.40
Q3 2023 $61.3M $5.2M $0.33
Q1 2023 $51.1M $9.2M $0.66

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CLFD Capital Allocation

Operating Cash Flow
$18.1M
Cash generated from operations
Stock Buybacks
$5.3M
Shares repurchased (TTM)
Capital Expenditures
$988.0K
Investment in assets
Dividends
None
No dividend program

CLFD SEC Filings

Access official SEC EDGAR filings for Clearfield, Inc. (CIK: 0000796505)

📋 Recent SEC Filings

Date Form Document Action
Mar 2, 2026 4 xslF345X05/primary_doc.xml View →
Mar 2, 2026 4 xslF345X05/primary_doc.xml View →
Mar 2, 2026 4 xslF345X05/primary_doc.xml View →
Mar 2, 2026 4 xslF345X05/primary_doc.xml View →
Mar 2, 2026 4 xslF345X05/primary_doc.xml View →

Frequently Asked Questions about CLFD

What is the AI rating for CLFD?

Clearfield, Inc. (CLFD) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CLFD's key strengths?

Strong revenue growth of 19.6% year-over-year shows market demand and expanding customer base. Exceptional free cash flow generation ($17.1M FCF margin of 49.9%) demonstrates sustainable cash economics despite operating losses.

What are the risks of investing in CLFD?

Operating losses of -$1.8M indicate core business operations are not yet profitable despite revenue growth. Negative operating margin of -5.3% and negative ROE/ROA suggest operational challenges in converting sales to earnings.

What is CLFD's revenue and growth?

Clearfield, Inc. reported revenue of $34.3M.

Does CLFD pay dividends?

Clearfield, Inc. does not currently pay dividends.

Where can I find CLFD SEC filings?

Official SEC filings for Clearfield, Inc. (CIK: 0000796505) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CLFD's EPS?

Clearfield, Inc. has a diluted EPS of $-0.04.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI