📊 CLW Key Takeaways
Is Clearwater Paper Corp (CLW) a Good Investment?
Clearwater Paper is in acute financial distress with deteriorating profitability (-$12.8M net loss, down 110% YoY) and zero revenue growth despite $360M in annual revenue. The company's negative interest coverage ratio (-2.2x) indicates inability to service $273.8M in debt from operations, while negative free cash flow of -$8.6M combined with minimal cash reserves of $36.5M creates imminent refinancing and covenant violation risks.
Clearwater Paper’s fundamentals are weak: margins are near breakeven at the gross level, operating and net income are negative, and free cash flow is meaningfully negative despite stable revenue. The balance sheet is not distressed, with adequate liquidity and moderate leverage, but the business currently lacks earnings power and cash generation quality, which limits fundamental attractiveness until profitability materially improves.
Why Buy Clearwater Paper Corp Stock? CLW Key Strengths
- Current ratio of 2.61x provides near-term liquidity to meet short-term obligations
- Moderate leverage with debt-to-equity of 0.34x means balance sheet not yet critically overleveraged
- Positive stockholders' equity of $813.8M provides nominal downside cushion before insolvency
- Liquidity is solid, with a 2.43x current ratio and 1.13x quick ratio
- Leverage appears manageable, with debt/equity of 0.42x and substantial equity relative to liabilities
- Revenue has remained stable year over year, indicating demand has not collapsed
CLW Stock Risks: Clearwater Paper Corp Investment Risks
- Negative net income of -$12.8M with 110% YoY decline indicates severe operational deterioration
- Negative free cash flow of -$8.6M with near-zero operating cash flow ($500K) despite $360M revenue signals inability to generate cash
- Negative interest coverage ratio (-2.2x) means company cannot service debt payments from operating income, creating default risk
- Flat revenue growth (0% YoY) combined with 4.1% gross margins shows business model under extreme stress in commodity industry
- Minimal cash position of $36.5M relative to $273.8M long-term debt creates refinancing vulnerability
- Negative operating margins (-2.9%) indicate core business operations are unprofitable
- Gross margin of just 0.9% leaves almost no buffer against input cost or pricing pressure
- Operating losses, negative net income, and -2.4x interest coverage indicate weak earnings support for the capital structure
- Free cash flow is negative due to low operating cash flow and elevated capital spending, reducing financial flexibility
Key Metrics to Watch
- Operating cash flow inflection point and return to positive territory
- Interest coverage ratio recovery above 1.5x minimum threshold
- Revenue growth resumption and gross margin expansion above 6%
- Free cash flow trajectory and cash burn rate vs. available liquidity
- Debt covenant compliance and any refinancing announcements
- Gross and operating margin recovery
- Operating cash flow and free cash flow trend
Clearwater Paper Corp (CLW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.61x current ratio provides a solid financial cushion.
CLW Profit Margin, ROE & Profitability Analysis
CLW vs Materials Sector: How Clearwater Paper Corp Compares
How Clearwater Paper Corp compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Clearwater Paper Corp Stock Overvalued? CLW Valuation Analysis 2026
Based on fundamental analysis, Clearwater Paper Corp has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Clearwater Paper Corp Balance Sheet: CLW Debt, Cash & Liquidity
CLW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Clearwater Paper Corp's revenue has grown significantly by 12% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.30 reflects profitable operations.
CLW Revenue Growth, EPS Growth & YoY Performance
CLW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $360.3M | -$6.3M | $-0.38 |
| Q3 2025 | $393.3M | $2.7M | $-0.17 |
| Q2 2025 | $344.4M | $2.7M | $0.17 |
| Q1 2025 | $258.8M | -$6.3M | $-0.38 |
| Q3 2024 | $278.9M | -$2.8M | $-0.17 |
| Q2 2024 | $524.6M | -$8.6M | $-0.52 |
| Q1 2024 | $496.2M | $17.2M | $1.02 |
| Q3 2023 | $519.9M | $14.7M | $1.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Clearwater Paper Corp Dividends, Buybacks & Capital Allocation
CLW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Clearwater Paper Corp (CIK: 0001441236)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CLW
What is the AI rating for CLW?
Clearwater Paper Corp (CLW) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 85% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CLW's key strengths?
Claude: Current ratio of 2.61x provides near-term liquidity to meet short-term obligations. Moderate leverage with debt-to-equity of 0.34x means balance sheet not yet critically overleveraged. ChatGPT: Liquidity is solid, with a 2.43x current ratio and 1.13x quick ratio. Leverage appears manageable, with debt/equity of 0.42x and substantial equity relative to liabilities.
What are the risks of investing in CLW?
Claude: Negative net income of -$12.8M with 110% YoY decline indicates severe operational deterioration. Negative free cash flow of -$8.6M with near-zero operating cash flow ($500K) despite $360M revenue signals inability to generate cash. ChatGPT: Gross margin of just 0.9% leaves almost no buffer against input cost or pricing pressure. Operating losses, negative net income, and -2.4x interest coverage indicate weak earnings support for the capital structure.
What is CLW's revenue and growth?
Clearwater Paper Corp reported revenue of $360.3M.
Does CLW pay dividends?
Clearwater Paper Corp does not currently pay dividends.
Where can I find CLW SEC filings?
Official SEC filings for Clearwater Paper Corp (CIK: 0001441236) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CLW's EPS?
Clearwater Paper Corp has a diluted EPS of $-0.80.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CLW a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Clearwater Paper Corp has a SELL rating with 85% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CLW stock overvalued or undervalued?
Valuation metrics for CLW: ROE of -1.6% (sector avg: 14%), net margin of -3.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CLW stock in 2026?
Our dual AI analysis gives Clearwater Paper Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CLW's free cash flow?
Clearwater Paper Corp's operating cash flow is $500.0K, with capital expenditures of $9.1M. FCF margin is -2.4%.
How does CLW compare to other Materials stocks?
Vs Materials sector averages: Net margin -3.6% (avg: 10%), ROE -1.6% (avg: 14%), current ratio 2.61 (avg: 1.6).