Clarus Corp (NASDAQ: CLAR)

Sector: Consumer Cyclical Industry: Leisure CIK: 0000913277
Market Cap 60.53 Mn
P/B 0.37
P/E 1.23
P/S 1.45
ROIC (Qtr) -13.04
Div Yield % 0.77
Rev 1y % (Qtr) 3.33
Total Debt (Qtr) 1.98 Mn
Debt/Equity (Qtr) 0.01
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About

Clarus Corp, known by its stock symbol CLAR, operates in the outdoor equipment and lifestyle industry, specializing in the design, development, manufacturing, and distribution of top-tier outdoor equipment focused on serving the outdoor enthusiast markets. The company boasts an impressive portfolio of iconic brands, such as Black Diamond, Rhino-Rack, MAXTRAX, and TRED, which have a long-standing reputation for continuous product innovation catering to both core and everyday users. Clarus Corp's main business activities revolve around the Outdoor...

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Investment thesis

Bull case

  • Healthy cash reserves of 29.51M provide 14.90x coverage of short-term debt 1.98M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 208.48M provides 105.29x coverage of total debt 1.98M, indicating robust asset backing and low credit risk.
  • Tangible assets of 208.48M provide robust 8.36x coverage of other current liabilities 24.93M, indicating strong asset backing.
  • Cash reserves of 29.51M provide ample 7.43x coverage of acquisition spending 3.97M, enabling strategic growth opportunities.
  • Cash reserves of 29.51M provide solid 1.49x coverage of other non-current liabilities 19.75M, indicating strong liquidity.

Bear case

  • Operating cash flow of (664000) barely covers its investment activities of (2.36M), with a coverage ratio of 0.28, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (664000) provides thin coverage of dividend payments of (3.84M) with a 0.17 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • The company's operating cash flow of (664000) shows concerning coverage of stock compensation expenses of 6.14M, with a -0.11 ratio indicating potential earnings quality issues.
  • Operating cash flow of (664000) provides minimal -0.04x coverage of tax expenses of 17.27M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (63.55M) show weak coverage of depreciation charges of 7.18M, with a -8.85 ratio indicating high capital intensity and potential reinvestment needs.

Geographic Distribution Breakdown of Revenue (2024)

Geographic Distribution Breakdown of Revenue (2024)

Peer comparison

Companies in the Leisure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AS Amer Sports, Inc. 22.38 Bn 71.89 3.67 1.87 Bn
2 HAS Hasbro, Inc. 13.30 Bn 46.47 3.26 3.32 Bn
3 PLNT Planet Fitness, Inc. 7.78 Bn 37.79 6.04 2.58 Bn
4 GOLF Acushnet Holdings Corp. 7.40 Bn 80.24 4.75 0.90 Bn
5 LTH Life Time Group Holdings, Inc. 6.29 Bn 21.85 2.16 4.13 Bn
6 MAT Mattel Inc /De/ 5.43 Bn 12.57 1.04 2.59 Bn
7 YETI YETI Holdings, Inc. 3.97 Bn 24.75 2.17 0.22 Bn
8 MSGE Madison Square Garden Entertainment Corp. 2.95 Bn 56.80 2.91 1.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.29 1.19
EV to Cash from Ops. EV/CFO -3.67 -6.09
EV to Debt EV to Debt 40.81 14.49
EV to EBIT EV/EBIT -4.12 -159.90
EV to EBITDA EV/EBITDA -4.89 -4.06
EV to Free Cash Flow [EV/FCF] EV/FCF -3.55 0.74
EV to Market Cap EV to Market Cap 1.33 -0.64
EV to Revenue EV/Rev 1.94 4.65
Price to Book Value [P/B] P/B 0.37 4.75
Price to Earnings [P/E] P/E 1.23 12.00
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -21.05 -0.51
Dividend Payout Ratio % Div Payout % (Qtr) -4.70 3.11
Dividend per Basic Share Div per Share (Qtr) 0.10 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -54.95 6.13
Interest Coverage Int. cover (Qtr) 0.00 -30.68
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -15.17 -13.50
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -18.93 1,190.33
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 13.88
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1,768.03 -111.75
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -194.20 -165.31
EBIT Growth (1y) % EBIT 1y % (Qtr) -43,728.28 -1,562.20
EBT Growth (1y) % EBT 1y % (Qtr) -43,728.28 -1,555.34
EPS Growth (1y) % EPS 1y % (Qtr) -1,730.77 -377.44
FCF Growth (1y) % FCF 1y % (Qtr) 52.96 10.93
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.41 17.65
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.91 0.73
Cash Payout Ratio Cash Payout (Qtr) 0.68 0.07
Cash Ratio Cash Ratio (Qtr) 0.79 3.31
Current Ratio Curr Ratio (Qtr) 4.66 4.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 2.35
Interest Cover Ratio Int Coverage (Qtr) 0.00 -30.68
Times Interest Earned Times Interest Earned (Qtr) 0.00 -30.68
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -22.00 -57.55
EBIT Margin % EBIT Margin % (Qtr) -24.78 -65.38
EBT Margin % EBT Margin % (Qtr) -24.78 -69.55
Gross Margin % Gross Margin % (Qtr) 34.60 46.51
Net Profit Margin % Net Margin % (Qtr) -31.50 -74.45