📊 CLW Key Takeaways
Is Clearwater Paper Corp (CLW) a Good Investment?
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.
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
- 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
- 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
- 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
- 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 margin recovery trajectory and ability to return to profitability
- Free cash flow trends and whether negative FCF stabilizes or worsens
- Interest coverage ratio improvement and debt service sustainability
- Gross margin expansion as indicator of cost management or pricing power recovery
- Cash balance depletion rate given current burn and debt obligations
- 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 2.43x 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 shows some fundamental concerns 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 |
|---|---|---|---|
| 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.
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 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CLW's key strengths?
Claude: 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. 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: 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. 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 $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?
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 April 2026, Clearwater Paper Corp has a SELL rating with 88% 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 -2.3% (sector avg: 14%), net margin of -1.2% (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 $12.3M, with capital expenditures of $88.8M. FCF margin is -4.9%.
How does CLW compare to other Materials stocks?
Vs Materials sector averages: Net margin -1.2% (avg: 10%), ROE -2.3% (avg: 14%), current ratio 2.43 (avg: 1.6).