|
Related Topics
|
Category: Clearwater Paper (CLW)
Date: 4 November 2020 Stock price of Clearwater: $39.62 We cover the 3rd quarter 2020 earnings report of Clearwater Paper, a premier supplier of private-branded tissue to major retailers and wholesale distributors. The group reported revenue of $457.4 million and net income of $21.4 million for the quarter.
|
|
We remain committed to the health and safety of our employees and continuing to safely operate our facilities to meet the needs of our customers -Arsen Kitch, president and chief executive officer. "
More About Clearwater Paper
Clearwater Paper is a premier supplier of private-branded tissue to major retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the company produces bleached paperboard used by quality-conscious printers and packaging converters, and offers services that include custom sheeting, slitting and cutting. Clearwater Paper's employees build shareholder value by developing strong relationships through quality and service.
Overview of Clearwater Paper 3rd quarter 2020 earnings
THIRD QUARTER HIGHLIGHTS
Tissue Sales Volumes and Prices:
Paperboard Sales Volumes and Prices:
- Delivered strong performance due to elevated demand for tissue products, steady demand for paperboard, and solid operational execution
- Net income of $21 million, or $1.28 per diluted share and Adjusted EBITDA of $77 million
- Net debt reduction of over $40 million and refinancing of 2023 notes with new 2028 notes
Tissue Sales Volumes and Prices:
- Total tissue volumes sold were 90,091 tons in the third quarter of 2020, an increase of 4% compared to 86,408 tons in the third quarter of 2019. Retail volumes represented 96% of total volumes sold in the third quarter of 2020, an increase from 92% in the third quarter of 2019. Total tissue volumes sold were 291,128 tons in the first nine months of 2020, an increase of 15% compared to 252,828 tons in the first nine months of 2019. Retail volumes represented 94% of total volumes sold in the first nine months of 2020, an increase from 91% in the first nine months of 2019.
- Average tissue net selling prices increased 3% to $2,726 per ton in the third quarter of 2020, compared to $2,635 per ton in the third quarter of 2019. Average tissue net selling prices increased to $2,672 per ton in the first nine months of 2020, compared to $2,664 per ton in the first nine months of 2019.
Paperboard Sales Volumes and Prices:
- Paperboard sales volumes were 211,820 tons in the third quarter of 2020, a decrease of 1% compared to 214,537 tons in the third quarter of 2019. Paperboard sales volumes were 630,526 tons in the first nine months of 2020, a decrease of 2% compared to 642,559 tons in the first nine months of 2019.
- Paperboard average net selling price decreased 2% to $982 per ton for the third quarter of 2020, compared to $1,004 per ton in the third quarter of 2019. Paperboard average net selling price decreased 1% to $988 per ton for the first nine months of 2020, compared to $1,003 per ton in the first nine months of 2019.
Clearwater Paper management commentary on their 3rd quarter 2020 earnings report
SPOKANE, Wash.--(BUSINESS WIRE)-- Clearwater Paper Corporation (NYSE:CLW), a premier supplier of quality tissue and bleached paperboard products, today reported financial results for the third quarter and first nine months of 2020.
"We remain committed to the health and safety of our employees and continuing to safely operate our facilities to meet the needs of our customers,” said Arsen Kitch, president and chief executive officer. “In the third quarter, we achieved strong results due to continued elevated demand and production in tissue, although at lower levels than the earlier phases of the COVID-19 pandemic, stable paperboard performance and benign input costs.”
"We remain committed to the health and safety of our employees and continuing to safely operate our facilities to meet the needs of our customers,” said Arsen Kitch, president and chief executive officer. “In the third quarter, we achieved strong results due to continued elevated demand and production in tissue, although at lower levels than the earlier phases of the COVID-19 pandemic, stable paperboard performance and benign input costs.”
COMPANY OUTLOOK
"For the fourth quarter, our primary focus will remain on our top priorities - the health and safety of our employees while we continue to operate our facilities and service customers. Demand for tissue products is expected to soften relative to the third quarter of 2020 as retail in-stock conditions and inventories have improved. We are also closely monitoring economic conditions and assessing the impact on our business for the balance of the year,” Kitch concluded
"For the fourth quarter, our primary focus will remain on our top priorities - the health and safety of our employees while we continue to operate our facilities and service customers. Demand for tissue products is expected to soften relative to the third quarter of 2020 as retail in-stock conditions and inventories have improved. We are also closely monitoring economic conditions and assessing the impact on our business for the balance of the year,” Kitch concluded
Clearwater Paper (CLW) stock price history over the last 5 years
The image below, obtained from Google shows the stock price history of Clearwater Paper (CLW) over the last 5 years. And it's not been a good time for Clearwater Paper stockholders. 5 years ago the stock of Clearwater Paper (CLW) was trading at $51.20 and its currently trading at $39.62. Thats a loss of -22.6% suffered by Clearwater Paper stockholders over the last 5 years.
The stock of Clearwater Paper (CLW) is trading at a lot closer to its 52 week high than it is to its 52 week low which to us is a clear indication that the short term sentiment and momentum of Clearwater Paper is positive at this point in time.
The stock of Clearwater Paper (CLW) is trading at a lot closer to its 52 week high than it is to its 52 week low which to us is a clear indication that the short term sentiment and momentum of Clearwater Paper is positive at this point in time.
Latest stock valuation of Clearwater Paper (CLW)
So what do we value the stock of Clearwater Paper (CLW) at following the release of their 3rd quarter 2020 earnings report. Based on their earnings reported our stock valuation model provides a target price of $72.70 per Clearwater Paper (CLW) stock. We therefore believe the stock of Clearwater Paper is undervalued at its current price.
We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price, which in this case is $72.70. A good entry point would therefore be at $65.40 or below.
Since the stock of Clearwater Paper is trading at well below our suggested entry point we rate their stock as a buy
We usually recommend that long term fundamental and value investors look to enter a stock at least 10% below our target price, which in this case is $72.70. A good entry point would therefore be at $65.40 or below.
Since the stock of Clearwater Paper is trading at well below our suggested entry point we rate their stock as a buy
Next earnings release of Clearwater Paper (CLW)
It is expected that Clearwater Paper (CLW) will release its 4th quarter 2020 earnings report in early February 2020
Related Topics