Clearfield: The Mid-Term Outlook Looks Promising, But Risks Are Significant

felixR Investment thesis After strong fiscal 2021, 2022, and 2023, Clearfield (NASDAQ:CLFD) is currently suffering a rebound effect as customers have excess inventories and are postponing orders. Net sales fell by 60.17% year over year in Q1 2024 and profit margins have plummeted due to lower volumes, pushing the EBITDA margin well into negative territory. As a consequence, investors are very pessimistic compared to fiscal 2021, 2022, and H1 2023, and the share price already trades 79% below all-time highs ...