📊 CLFD Key Takeaways
Is Clearfield, Inc. (CLFD) a Good Investment?
Clearfield demonstrates strong fundamental growth with 19.6% revenue expansion and exceptional free cash flow generation (23.4% FCF margin), underpinned by a fortress balance sheet with zero debt and 12.84x current ratio. Despite current operational unprofitability (-5.7% operating margin), the company's improving profitability trajectory (35.4% net income improvement YoY) and positive operating cash flow ($18.1M) suggest operational challenges may be transitory.
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.
Clearfield, Inc. Key Strengths (CLFD)
- Strong revenue growth of 19.6% YoY with accelerating cash conversion (23.4% FCF margin)
- Fortress balance sheet: zero debt, $242.8M equity, exceptional liquidity (12.84x current ratio) providing substantial downside protection
- Improving profitability trend with 35.4% YoY net income improvement and positive operating cash flow of $18.1M despite operational losses
- Robust asset base of $263.5M with minimal liabilities ($20.7M) indicating strong financial stability
- 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
- Currently unprofitable with negative operating income (-$3.9M) and operating margin of -5.7%, indicating operational execution challenges
- Negative return on equity (-0.5%) and return on assets (-0.4%) showing capital inefficiency despite asset accumulation
- Disconnect between operational losses and positive cash flow may mask underlying margin compression or working capital volatility
- Gross margin sustainability uncertain at 32.8% with scale; low cash position of $9.4M may limit operational flexibility
- 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
- Operating margin trajectory toward positive territory - critical inflection point for profitability
- Gross margin stability as revenue scales - ensure 32.8% margin is defensible long-term
- Free cash flow sustainability and cash balance replenishment - maintain operational flexibility
- Operating margin trend
- Revenue growth and free cash flow conversion
Clearfield, Inc. (CLFD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 23.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 12.84x 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 |
|---|---|---|---|
| Q2 2026 | $34.4M | -$528.0K | $-0.04 |
| 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 |
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 Grade of A from Claude (A) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CLFD's key strengths?
Claude: Strong revenue growth of 19.6% YoY with accelerating cash conversion (23.4% FCF margin). Fortress balance sheet: zero debt, $242.8M equity, exceptional liquidity (12.84x current ratio) providing substantial downside protection. 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: Currently unprofitable with negative operating income (-$3.9M) and operating margin of -5.7%, indicating operational execution challenges. Negative return on equity (-0.5%) and return on assets (-0.4%) showing capital inefficiency despite asset accumulation. 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 $68.7M.
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 $-0.08.
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 grade reflects both perspectives for balanced insights.
What is CLFD's fundamental grade?
Based on our AI fundamental analysis in June 2026, Clearfield, Inc. has a A grade with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CLFD stock overvalued or undervalued?
Valuation metrics for CLFD: ROE of -0.5% (sector avg: 15%), net margin of -1.7% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
What is CLFD's AI grade for 2026?
Our dual AI analysis gives Clearfield, Inc. a combined A grade 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 $2.0M. FCF margin is 23.4%.
How does CLFD compare to other Telecom stocks?
Vs Telecom sector averages: Net margin -1.7% (avg: 14%), ROE -0.5% (avg: 15%), current ratio 12.84 (avg: 1).