Clearfield Inc. Common Stock (CLFD)
Fast GrowerFairStock Score: 45/100 — MIXED
Key Financials
| Current Price | $43.5 |
| Market Cap | $431M |
| P/E Ratio | 189.13 |
| ROE | 1.3% |
| Dividend Yield | —% |
| Sector | Technology |
Strengths
- Generates $22 million in annual free cash flow (5.1% yield on market cap)
- Conservative balance sheet with debt-to-equity of just 0.03, providing financial flexibility
- Altman Z-Score of 15.4 confirms minimal bankruptcy risk and strong solvency
- Revenue growth of 15.6% demonstrates strong top-line momentum
Concerns
- Trades significantly above Graham Number ($14) with negative 130% margin of safety—limited downside protection
- Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
AI Analysis
Clearfield Inc. Common Stock is a micro-cap technology company valued at $431 million. Revenue stands at $155 million, though the company is currently unprofitable. From a quality standpoint, Clearfield shows Altman Z-Score of 15.4 confirms fortress-level solvency and modest 2% ROE. On valuation, the stock is commanding a steep 67.5x multiple, with trades far above its Graham Number ($14) with no margin of safety. Growth dynamics show revenue growing at 15.6% and profit growth of 67.8%. Our composite FairStock Score of 45/100 reflects mixed fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.
Bull Case
Clearfield's 16% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $22 million in annual free cash flow (5.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 67x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer