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what it is
Clearfield makes fiber-optic gear for internet, wireless, cable, utility, enterprise, and data-center customers, and sold $150M last year.
how it gets paid
Last year Clearfield made $150M in revenue. fiber optic cables was the main engine at $62M, or 41% of sales.
why it's growing
Revenue grew 19.6% last year. Gross margin at 33.2% matters because it moved up ~400 basis points while revenue rose at a similar high-teens pace.
what just happened
Clearfield beat with $34.3M of revenue (q), above the $30M-$33M range.
At a glance
B balance sheet — gets the job done, barely
20/100 earnings predictability — expect surprises
70.3x trailing p/e — you're paying up for this one
9.0% return on capital — nothing to write home about
$1.20 fy2027 eps est
xvary composite: 38/100 — weak
What they do
Clearfield makes fiber-optic gear for internet, wireless, cable, utility, enterprise, and data-center customers, and sold $150M last year.
It has about 400 employees. Insiders own 17.8% of the stock, and gross margin hit 33.2% last quarter after a 400 bps jump. That is $425M of market cap against $150M of sales.
How they make money
$150M
annual revenue · their business grew +19.6% last year
fiber optic cables
$62M
fiber active cabinets
$48M
panels and components
$40M
The products that matter
fiber connectivity hardware
fiber optic cables
part of the $150M revenue base
this sits inside the full $150M business, which means execution on core fiber demand matters more than segment mix data we don't have here.
core infrastructure
active network cabinets
fiber active cabinets
priced into a rebound story
with the stock at $31.62 and fy2027 revenue estimated at $200M, hardware tied to broadband buildouts is where the recovery thesis has to show up.
recovery watch
network panels and assemblies
other panels
supports 33.2% gross margin
gross margin hit 33.2%—about 33 cents of each revenue dollar after direct costs, not the same as the ~1.4% operating margin. if product mix gets worse, that cushion gets thinner fast.
margin lever
Key numbers
70.3x
trailing p/e
trailing p/e → price divided by past profit → you are paying 70.3 times earnings for a 1.4% operating margin.
$425M
market cap
market cap → the market's sticker price → this is a $425M stock, so one quarter can move it fast.
1.4%
op margin
operating margin → profit left after running the business → 1.4% leaves almost no room for mistakes.
9.0%
return on capital
return on capital → profit made from invested money → 9.0% is modest for a company trading at 70.3x earnings.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- operating margin ~1.4% — matches the hero/KPI strip; thin operating spread
- net profit margin 12.7% — full-year feed; can exceed operating on the same page when below-the-line items help or periods differ from a loss quarter
- return on equity 9% — $0.09 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in CLFD 3 years ago → it's now worth $5,010.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Clearfield beat with $34.3M of revenue, above the $30M-$33M range.
Revenue rose ~16% vs. prior year in this quarter (the +19.6% callout above is full-year revenue—different period). Gross margin reached 33.2%, helped by better overhead absorption and stronger inventory use.
$34.3M
rev (q)
-$0.04
eps (q)
33.2%
gross margin (q)
gross margin
33.2% matters because margin moved up 400 basis points while quarterly revenue rose ~16% vs. prior year—not the same window as the +19.6% FY growth line.
-
revenues of $34.3 million exceeded the $30-33 million expected range and rose 16% from the year-ago period.
-
gross margin expanded by 400 basis points to 33.2%, driven by improved overhead absorption and stronger inventory utilization following the inventory digestion cycle that had pressured the business through much of fiscal 2025.community broadband was the standout segment, rebounding sharply after broadband equity, access, and deployment program (bead) delays had constrained not only federal spending but also customers’ ability to fund and engineer other projects. management reiterated full-year guidance of $160 million-$170 million in revenue and earnings per share of $0.48-$0.62.
-
the company is investing in the future.operating expenses rose to $13.2 million from $10.7 million in the year-ago quarter, reflecting investment in an expanded national sales organization built to pursue opportunities created by the verizon-frontier merger (clearfield was a key frontier supplier). the other reason for the sales team expansion was potential share gains as commscope refocuses on hyperscale data center markets following its acquisition by amphenol, a large electronics connector manufacturer, potentially ceding ground in the carrier and rural markets where clearfield competes. looking further out, revenue from bead is expected to remain modest in fiscal 2026, constrained by lead times exceeding one year for fiber meeting the build america, buy america act’s domestic sourcing requirements, though management believes community broadband providers will move faster than tier 1 operators once funding picks up.
-
the shares are unranked for timeliness due to a low market cap.clearfield enters the back half of fiscal 2026 with some progress building across its core customer base, and a solid balance sheet with no substantial debt.
-
bead remains a longer-term catalyst.
source: EDGAR filing and company report, 2026
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What could go wrong
the #1 risk here is customer concentration in fiber buildouts.
med
top-customer concentration
73% of revenue comes from top customers. when a few buyers pause orders, the whole income statement feels it.
73% of revenue comes from top customers. when a few buyers pause orders, the whole income statement feels it.
med
recovery priced in early
the stock trades at 70.3x trailing earnings while return on capital is just 9.0%. if operations stay merely okay, the multiple has room to compress.
the stock trades at 70.3x trailing earnings while return on capital is just 9.0%. if operations stay merely okay, the multiple has room to compress.
med
earnings volatility
earnings predictability is 20/100 and price stability is 10/100. in human terms: you should expect a bumpy ride, not a smooth compounding curve.
earnings predictability is 20/100 and price stability is 10/100. in human terms: you should expect a bumpy ride, not a smooth compounding curve.
med
broadband spending delays
the fy2027 setup assumes revenue climbs from $150M to $200M. if carrier and network spending slips, that 33% step-up gets harder to defend.
the fy2027 setup assumes revenue climbs from $150M to $200M. if carrier and network spending slips, that 33% step-up gets harder to defend.
42% upside exists on paper, but 0.5% projected sales growth does not give you much cushion.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the key metric
revenue has to move toward $200M
current revenue is $150M. the fy2027 estimate is $200M. that's the gap the whole recovery case is trying to close.
concentration risk
73% of sales tied to top customers
you don't need many order cuts to feel pain here. this is the first number to check every quarter.
quality trend
return on capital is only 9.0%
a premium multiple wants premium returns. if this number doesn't improve, valuation support gets weaker.
holder behavior
institutions have sold for 2 straight quarters
27 buyers versus 43 sellers in 4q2025 tells you professional money is waiting for cleaner evidence.
Analyst rankings
earnings predictability
20 / 100
earnings can be harder to model here. in human-speak, analysts do not trust this business to print the same kind of quarter every time.
balance sheet grade
B
the balance sheet is adequate. translation: it helps, but it does not erase operating or valuation risk.
3–5 year target range
$35–$60
the midpoint is $45, about 42% above the current price. that sounds good until you notice how wide the range is.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 27 buyers vs. 43 sellers in 4q2025. total institutional holdings: 8.7M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$23
$67
$32
current price
$45
target midpoint · +42% from current · 3-5yr high: $60 (+90% · 17% ann'l return)
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