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Clarus Corporation (CLAR)
NASDAQ:CLAR
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Clarus
(NASDAQ:CLAR)
49Neutral
Clarus (CLAR) vs. S&P 500 (SPY)
Market Cap
$152.30M
Dividend Yield2.55%
Average Volume (3M)143.97K
Price to Earnings (P/E)33.6
Beta (1Y)1.00
Revenue Growth-7.66%
EPS Growth-413.50%
CountryUS
Employees500
SectorConsumer Cyclical
Sector Strength51
IndustryHotels, Lodging & Leisure
Share Statistics
EPS (TTM)-1.36
Shares Outstanding38,362,164
10 Day Avg. Volume151,084
30 Day Avg. Volume143,973
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.56
Price to Cash Flow (P/CF)2.30
P/FCF Ratio2.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.69Price Target Upside43.32% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Clarus Business Overview & Revenue Model
Company DescriptionClarus Corporation (CLAR) is a designer, developer, manufacturer, and distributor of outdoor equipment and lifestyle products. The company operates through multiple brands, with a focus on high-quality, performance-oriented products in the outdoor and consumer markets. Its core product categories include climbing, skiing, mountain, and other outdoor activities, serving a diverse range of enthusiasts and professionals worldwide.
How the Company Makes MoneyClarus Corporation generates revenue primarily through the sale of its outdoor equipment and lifestyle products across various brands. Key revenue streams include wholesale distribution to retail partners, direct-to-consumer sales via e-commerce platforms, and international sales through a global distribution network. The company leverages strong brand recognition and a loyal customer base to drive sales. Strategic acquisitions and partnerships, along with a focus on innovation and product development, also play significant roles in expanding its market reach and enhancing revenue potential.
Clarus Financial Statement Overview
Summary
Clarus faces profitability and growth challenges with declining revenues and net losses. However, it maintains a strong balance sheet with low leverage and a high equity ratio. Negative cash flows from operations and free cash flow indicate liquidity concerns.Income Statement
Clarus has faced declining revenues and profitability issues. The gross profit margin decreased from 34.1% (2023) to 35.1% (2024), and net profit margin remained negative, reflecting challenges in achieving profitability. Revenue growth rate from 2023 to 2024 was -7.6%, indicating a contraction. EBIT and EBITDA margins are negative, with significant operating losses in 2024.45
Neutral
Balance Sheet
Clarus exhibits a stable equity base with a high equity ratio of 79.3% in 2024, indicating a strong capital structure. However, the debt-to-equity ratio decreased to 0.008, reflecting reduced leverage. Return on Equity remains negative due to net losses, highlighting profitability challenges.55
Neutral
Cash Flow
The company has struggled with negative free cash flow growth and deteriorating operating cash flow. Free cash flow in 2024 turned negative, and the operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the high investing cash flow suggests some liquidity improvements.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 264.31M | 286.02M | 448.11M | 375.79M | 224.01M | Gross Profit |
| 92.62M | 97.51M | 163.42M | 136.93M | 77.80M | EBIT |
| -70.38M | -21.11M | 3.58M | 11.24M | -1.59M | EBITDA |
| -9.35M | 1.49M | 12.36M | 13.03M | 14.62M | Net Income Common Stockholders |
| -52.29M | -10.15M | -69.78M | 26.09M | 5.54M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 45.36M | 11.32M | 12.06M | 19.46M | 17.79M | Total Assets |
| 294.09M | 495.34M | 518.14M | 631.83M | 280.69M | Total Debt |
| 16.65M | 136.00M | 139.03M | 141.53M | 34.62M | Net Debt |
| -28.71M | 124.67M | 126.97M | 122.07M | 16.83M | Total Liabilities |
| 61.00M | 203.22M | 226.04M | 261.66M | 76.10M | Stockholders Equity |
| 233.09M | 292.12M | 292.11M | 370.17M | 204.59M |
| Cash Flow | Free Cash Flow | |||
| -14.04M | 25.96M | 6.36M | -17.69M | 23.98M | Operating Cash Flow |
| -7.30M | 31.92M | 14.61M | -304.00K | 29.39M | Investing Cash Flow |
| 165.16M | -11.42M | -7.75M | -178.14M | -35.58M | Financing Cash Flow |
| -123.24M | -20.25M | -13.86M | 180.68M | 22.25M |
Clarus Technical Analysis
Negative
3.97
Price Trends
4.49
Negative
4.51
Negative
4.77
Negative
Market Momentum
-0.17
Negative
38.49
Neutral
31.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLAR, the sentiment is Negative. The current price of 3.97 is below the 20-day moving average (MA) of 4.10, below the 50-day MA of 4.49, and below the 200-day MA of 4.77, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 38.49 is Neutral, neither overbought nor oversold. The STOCH value of 31.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLAR.
Clarus Risk Analysis
Clarus disclosed 47 risk factors in its most recent earnings report. Clarus reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clarus Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.31B | 6.85 | 57.76% | ― | 3.53% | 24.55% | |
76 Outperform | $17.75B | 18.98 | 39.80% | ― | 19.40% | 32.70% | |
63 Neutral | $4.22B | 19.96 | 12.01% | 1.57% | -3.35% | -6.09% | |
63 Neutral | $97.33B | 21.87 | 31.93% | 2.30% | -7.16% | -12.12% | |
59 Neutral | $12.60B | 11.17 | 0.97% | 3.72% | 1.34% | -21.34% | |
52 Neutral | $2.65B | ― | -6.12% | ― | -7.47% | -131.70% | |
49 Neutral | $152.30M | 33.59 | -33.68% | 2.55% | -7.66% | -413.50% |
* Consumer Cyclical Sector Average
Performance Comparison
CLAR
Clarus
3.97
-2.64
-39.94%
COLM
Columbia Sportswear
76.76
-3.25
-4.06%
CROX
Crocs
110.59
-33.21
-23.09%
DECK
Deckers Outdoor
116.95
-39.93
-25.45%
NKE
Nike
65.80
-26.46
-28.68%
UA
Under Armour
6.06
-1.08
-15.13%
Clarus Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -6.15% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlights several positive aspects such as improved gross margins, significant EBITDA growth, and the acquisition of Rocky Mounts. However, these are tempered by notable challenges including a revenue decline, difficulties in the Adventure segment, and uncertainties due to potential tariff impacts.Highlights
Improved Gross Margin in Outdoor Segment
Outdoor adjusted gross margin improved to 36.9% in Q4 2024 compared to 32.8% in Q4 2023, a 410 basis point improvement.
Significant EBITDA Growth
Full-year adjusted EBITDA increased by 80% despite a decline in revenue, reflecting improved operational efficiencies and cost management.
Strong Balance Sheet
Clarus maintains a strong balance sheet with no third-party bank debt, providing financial stability.
Rocky Mounts Acquisition
Acquired Rocky Mounts to strengthen the Adventure segment, providing immediate scale in North America and a compelling offering in the home market.
Positive Cash Flow
Free cash flow was $14.4 million in Q4 2024, maintaining a consistent cash balance of approximately $43 million.
Lowlights
Revenue Decline
Fourth-quarter sales were $71.4 million compared to $76.5 million in the prior year fourth quarter, indicating a 7% decline.
Challenges in Adventure Segment
Adventure segment faced revenue shortfalls due to lower OEM and Australian wholesale revenue, with Q4 revenue of $20.3 million, down 23% year-over-year.
Tariff Impact Uncertainty
Potential tariff impact could affect gross margins by up to $2.5 million, creating uncertainty in financial projections.
OEM Partner Production Halt
An important OEM partner halted production in September, affecting Adventure segment revenue in Q4 2024.
Company Guidance
In the recent earnings call, Clarus Corporation provided guidance for the fiscal year 2025, reflecting a cautious yet optimistic outlook. The company anticipates full-year sales to range between $250 million and $260 million, with adjusted EBITDA expected to be between $14 million and $16 million, translating to an adjusted EBITDA margin of 5.9% at the midpoint. The outdoor segment is projected to contribute $175 million in sales, while the adventure segment is expected to bring in $80 million, despite a cautious stance due to weak auto sales in core markets and unfavorable FX impacts. The company foresees a 350 to 450 basis point improvement in gross margins, driven by strategic simplification and product mix optimization in the outdoor segment. Additionally, Clarus plans capital expenditures of $4 million to $5 million and aims to generate free cash flow between $8 million and $10 million. The guidance does not factor in potential tariff impacts, estimated to potentially affect gross margins by up to $2.5 million, nor does it include expenses related to ongoing litigation.Clarus Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Clarus Strengthens Leadership and Legal Framework
Positive
Dec 9, 2024
Clarus Corporation has updated its indemnity agreements with key executives, ensuring comprehensive legal protection for them under Delaware law. Additionally, the company has appointed Mark M. Besca, a seasoned financial expert with extensive audit experience, to its Board of Directors, expanding the board from six to seven members. Besca’s appointment aligns with the company’s strategic focus on leveraging seasoned expertise to navigate the financial landscape effectively.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.