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CLW Stock Analysis - Clearwater Paper Corp AI Rating

CLW NYSE Paperboard Mills DE CIK: 0001441236
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
STRONG SELL
92% Confidence

📊 CLW Key Takeaways

Revenue: $1.6B
Net Margin: -1.2%
Free Cash Flow: $-76.5M
Current Ratio: 2.43x
Debt/Equity: 0.42x
EPS: $-1.15
AI Rating: STRONG SELL with 92% confidence

Investment Thesis

Clearwater Paper faces severe operational distress with negative profitability across all margins, burning cash despite flat revenue. The company is unable to cover interest expenses with operating income and generating negative free cash flow, indicating fundamental business deterioration in the paperboard mills sector.

CLW Strengths

  • + Adequate liquidity with 2.43x current ratio providing near-term solvency buffer
  • + Modest leverage at 0.42x debt-to-equity ratio relative to total assets
  • + Positive operating cash flow of $12.3M provides minimal cushion despite operational losses

CLW Risks

  • ! Severe profitability collapse with -1.2% net margin and -2.7% operating margin indicating structural business problems
  • ! Negative free cash flow of -$76.5M annually with capital expenditures exceeding operating cash generation, unsustainable burn rate
  • ! Negative interest coverage of -2.4x demonstrates inability to service debt from operations, increasing default risk
  • ! Gross margin compressed to 0.9% suggests commoditized product with minimal pricing power or severe cost pressures
  • ! Deteriorating returns with -2.3% ROE and -1.2% ROA, destroying shareholder value

Key Metrics to Watch

CLW Financial Metrics

Revenue
$1.6B
Net Income
$-18.6M
EPS (Diluted)
$-1.15
Free Cash Flow
$-76.5M
Total Assets
$1.6B
Cash Position
$30.7M

💡 AI Analyst Insight

Strong liquidity with a 2.43x current ratio provides a solid financial cushion.

CLW Profitability Ratios

Gross Margin 0.9%
Operating Margin -2.7%
Net Margin -1.2%
ROE -2.3%
ROA -1.2%
FCF Margin -4.9%

CLW vs Default Sector

How Clearwater Paper Corp compares to Default sector averages

Net Margin
CLW -1.2%
vs
Sector Avg 12.0%
CLW Sector
ROE
CLW -2.3%
vs
Sector Avg 15.0%
CLW Sector
Current Ratio
CLW 2.4x
vs
Sector Avg 1.8x
CLW Sector
Debt/Equity
CLW 0.4x
vs
Sector Avg 0.7x
CLW Sector

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

CLW Balance Sheet & Liquidity

Current Ratio
2.43x
Quick Ratio
1.13x
Debt/Equity
0.42x
Debt/Assets
48.0%
Interest Coverage
-2.37x
Long-term Debt
$345.5M

CLW 5-Year Financial Trend

CLW 5-year financial data: Year 2024: Revenue $1.4B, Net Income $46.0M, EPS $2.68. Year 2025: Revenue $1.6B, Net Income $107.7M, EPS $6.30.
Revenue
Net Income
EPS (right axis)

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 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
-4.9%
Free cash flow / Revenue

CLW Quarterly Performance

Quarterly financial performance data for Clearwater Paper Corp including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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
Q2 2023 $524.6M $14.7M $0.86

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

CLW Capital Allocation

Operating Cash Flow
$12.3M
Cash generated from operations
Stock Buybacks
$17.2M
Shares repurchased (TTM)
Capital Expenditures
$88.8M
Investment in assets
Dividends
None
No dividend program

CLW SEC Filings

Access official SEC EDGAR filings for Clearwater Paper Corp (CIK: 0001441236)

📋 Recent SEC Filings

Date Form Document Action
Mar 17, 2026 4 xslF345X05/wk-form4_1773781654.xml View →
Mar 17, 2026 4 xslF345X05/wk-form4_1773781551.xml View →
Mar 17, 2026 4 xslF345X05/wk-form4_1773781509.xml View →
Mar 17, 2026 4 xslF345X05/wk-form4_1773781457.xml View →
Mar 17, 2026 4 xslF345X05/wk-form4_1773781396.xml View →

Frequently Asked Questions about CLW

What is the AI rating for CLW?

Clearwater Paper Corp (CLW) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CLW's key strengths?

Adequate liquidity with 2.43x current ratio providing near-term solvency buffer. Modest leverage at 0.42x debt-to-equity ratio relative to total assets.

What are the risks of investing in CLW?

Severe profitability collapse with -1.2% net margin and -2.7% operating margin indicating structural business problems. Negative free cash flow of -$76.5M annually with capital expenditures exceeding operating cash generation, unsustainable burn rate.

What is CLW's revenue and growth?

Clearwater Paper Corp reported revenue of $1.6B.

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 $-1.15.

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