📊 CLFD Key Takeaways
Is Clearfield, Inc. (CLFD) a Good Investment?
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.
Clearfield shows improving fundamentals, with revenue up 19.6% year over year, sharply better net losses, and exceptionally strong liquidity supported by a debt-free balance sheet. The company also generated strong free cash flow, which supports resilience, but ongoing operating losses and still-negative margins suggest the turnaround is not yet fully proven.
Why Buy Clearfield, Inc. Stock? CLFD 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
- 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
- Debt-free balance sheet with very high liquidity and substantial equity cushion
- Revenue growth has returned and net loss narrowed materially year over year
- Strong operating cash flow and free cash flow provide flexibility during a recovery period
CLFD Stock Risks: Clearfield, Inc. Investment 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
- Business remains unprofitable at the operating and net income level
- Free cash flow may be inflated by working-capital movements rather than fully restored earnings power
- Low returns on assets and equity indicate capital is not yet being deployed efficiently
Key Metrics to Watch
- Path to operating profitability and operating margin expansion toward industry benchmarks
- Gross margin sustainability and any compression from increased manufacturing or supply chain costs
- Capital efficiency and conversion of strong FCF generation into eventual net profitability
- Operating margin trend
- Revenue growth and free cash flow conversion
Clearfield, Inc. (CLFD) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
CLFD vs Telecom Sector: How Clearfield, Inc. Compares
How Clearfield, Inc. compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Clearfield, Inc. Stock Overvalued? CLFD Valuation Analysis 2026
Based on fundamental analysis, Clearfield, Inc. has mixed fundamental signals relative to the Telecom 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.
Clearfield, Inc. Balance Sheet: CLFD Debt, Cash & Liquidity
CLFD Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
CLFD Quarterly Earnings & Performance
| 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.
Clearfield, Inc. Dividends, Buybacks & Capital Allocation
CLFD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Clearfield, Inc. (CIK: 0000796505)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CLFD
What is the AI rating for CLFD?
Clearfield, Inc. (CLFD) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CLFD's key strengths?
Claude: 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. ChatGPT: Debt-free balance sheet with very high liquidity and substantial equity cushion. Revenue growth has returned and net loss narrowed materially year over year.
What are the risks of investing in CLFD?
Claude: 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. ChatGPT: Business remains unprofitable at the operating and net income level. Free cash flow may be inflated by working-capital movements rather than fully restored earnings power.
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?
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 CLFD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Clearfield, Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CLFD stock overvalued or undervalued?
Valuation metrics for CLFD: ROE of -0.2% (sector avg: 15%), net margin of -1.8% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy CLFD stock in 2026?
Our dual AI analysis gives Clearfield, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CLFD's free cash flow?
Clearfield, Inc.'s operating cash flow is $18.1M, with capital expenditures of $988.0K. FCF margin is 49.9%.
How does CLFD compare to other Telecom stocks?
Vs Telecom sector averages: Net margin -1.8% (avg: 14%), ROE -0.2% (avg: 15%), current ratio 12.55 (avg: 1).