Professional
Added to YB: 2026-05-11
Pitch date: 2026-05-02
CLAR [bullish]
Clarus Corporation
+10.26%
current return
Author Info
A team of 15-year-olds who share long, short, and quant trading ideas. Sign up for the newsletter.
Company Info
Clarus Corporation engages in the design, development, manufacture, and distribution of outdoor equipment and lifestyle products in the United States, Australia, China, Austria, and internationally.
Market Cap
$111.1M
Pitch Price
$2.73
Price Target
4.60 (+53%)
Dividend
N/A
EV/EBITDA
-44.08
P/E
-2.49
EV/Sales
0.32
Sector
Leisure Products
Category
special_situation
An undervalued 100m left-for-dead company where a dedicated activist could create meaningful shareholder value with what we think is a conservative 60% upside. - Clarus Corporation
CLAR (new position): Outdoor equipment co trading ~$100M mkt cap w/ $37M net cash, $175M core rev. Adventure segment (30% rev, 44-47% SG&A vs 30% core) is value destroyer. Divest Adventure, deploy $37M + proceeds into buybacks (~37% mkt cap). Core worth $105M+ at 0.6x P/S (conservative). 60% upside via activist intervention forcing strategic review/sale. Share count +26% since 2018, mgmt misallocated capital on 3 failed M&A. Risk: no buyer for Adventure, but shutdown still eliminates losses.
Read full article (7 min)