Capitalcube gives Clearwater Paper Corp. a score of 31.
Our analysis is based on comparing Clearwater Paper Corp. with the following peers – P. H. Glatfelter Company, International Paper Company, KapStone Paper and Packaging Corporation, Hadera Paper Ltd, Orchids Paper Products Company, Neenah Paper, Inc., UPM-Kymmene Oyj Sponsored ADR, Packaging Corporation of America, Kimberly-Clark Corporation and Stora Enso Oyj Sponsored ADR Class R (GLT-US, IP-US, KS-US, HAIPF-US, TIS-US, NP-US, UPMKY-US, PKG-US, KMB-US and SEOAY-US).
Clearwater Paper Corp. has a fundamental score of 31 and has a relative valuation of UNDERVALUED.
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- Considering peers, relative underperformance over the last year and the last month suggest a lagging position.
- It’s current Price/Book of 1.54 is about median in its peer group.
- The market expects CLW-US‘s earnings to grow at about the same rate as its chosen peers and also does not seem to expect much improvement in its below peer median returns.
- CLW-US has relatively low profit margins and median asset efficiency.
- Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
- Over the last five years, CLW-US‘s return on assets has declined from about median to less than the median among its peers suggesting that the company’s historical competitiveness in operations is slipping away.
- The company’s relatively low gross and pre-tax margins suggest a non-differentiated product portfolio and not much control on operating costs relative to peers.
- CLW-US‘s revenue growth in recent years and current P/E ratio are both around their respective peer medians suggesting that historical performance and long-term growth expectations for the company are largely in sync.
- The company’s capital investment program and to-date returns suggest that the company is likely making big bets on the future.
- CLW-US seems to be constrained by the current level of debt.
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Leverage & Liquidity
CLW-US is debt-constrained.
- With debt at a relatively high 47.99% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 36.10%), and interest coverage level of 2.15x, CLW-US seems debt-constrained.
- All 10 peers for the company have an outstanding debt balance.
CLW-US has moved to a relatively high leverage from an Some Capacity profile at the recent year-end.
- CLW-US‘s interest coverage is its lowest relative to the last five years and compares to a high of 4.06x in 2015.
- The decrease in its interest coverage to 2.15x from 3.29x (in 2016) was also accompanied by a decrease in its peer median during this period to 3.72x from 4.44x.
- CLW-US‘s debt-EV is its highest relative to the last five years and compares to a low of 27.64% in 2014.
- The increase in its debt-EV to 47.99% from 40.76% (in 2016) was also accompanied by an increase in its peer median during this period to 36.10% from 35.04%.
- Relative to peers, debt-EV rose 6.17 percentage points.
Access the detailed analysis for Clearwater Paper Corp.
Key Liquidity Items
|Company||Debt/Enterprise Value (%)||Current Ratio||Interest Coverage (x)||Cash Flow To Total Debt (%)|
|P. H. Glatfelter Company||36.1||1.59||1.02||18.37|
|International Paper Company||33.41||1.45||2.4||25.76|
|KapStone Paper and Packaging Corporation||44.42||2.19||3.72||17.51|
|Hadera Paper Ltd||46.47||1.89||1.52||15.7|
|Orchids Paper Products Company||55.32||0.22||0.72||19.29|
|Neenah Paper, Inc.||14.16||2.55||9.44||55.87|
|UPM-Kymmene Oyj Sponsored ADR||17.56||1.72||23.37||72.23|
|Packaging Corporation of America||20.54||2.45||9.25||32.19|
|Stora Enso Oyj Sponsored ADR Class R||40.98||1.17||3.9||28.94|
|Clearwater Paper Corporation||47.99||1.16||2.15||21.45|
|Best In Class||14.16||2.55||23.37||72.23|
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Clearwater Paper Corp. engages in the manufacturing and selling of private label tissue, paperboard, and pulp-based products. It operates through the Consumer Products and Pulp and Paperboard segments. The Consumer Products segment manufactures and sells a complete line of at-home tissue products as well as Away From Home products. The Pulp and Paperboard segment produce and markets bleached paperboard for the high-end segment of the packaging industry. The company was founded on December 9, 2008 and is headquartered in Spokane, WA.
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