Clarke Inc. (CKI) AI Stock Analysis

• Market Cap: C$278.69M
• Dividend Yield: N/A
• Average Volume (3M): 633.00
• Price to Earnings (P/E): 22.1
• Beta (1Y): -0.09
• Revenue Growth: 9.29%
• EPS Growth: 47.73%
• Country: CA
• Employees: 550
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): -0.03
• Shares Outstanding: 12,968,315
• 10 Day Avg. Volume: 830
• 30 Day Avg. Volume: 633
• PEG Ratio: -0.34
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 3.53
• P/FCF Ratio: 68.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: C$21.50 ▲(2.38% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is primarily held back by mixed financial quality—especially weak and inconsistent free cash flow and increased leverage—despite solid recent profitability. Technical signals are also soft with negative momentum and the price below key moving averages. Valuation appears mid-range based on the P/E, offering limited offset to the financial and trend risks.

Positive Factors

Profitability & margins

Consistent mid-teens net income margin in 2025 indicates the company earns meaningful profit per dollar of sales. Durable margin strength supports reinvestment in product development and distribution, funds operations through cycles, and provides a cushion versus competitors with thinner margins.

Diversified distribution & R&D

Multiple sales channels and major retail partnerships reduce single-channel risk and stabilize revenues over time. Economies of scale in manufacturing and ongoing R&D investment sustain product innovation and cost competitiveness, reinforcing structural market position across cycles.

Positive revenue trend

Mid-single-digit revenue growth reflects ongoing demand for the company’s product mix and the ability to expand market share. Steady top-line growth helps absorb fixed costs, supports margin maintenance, and provides runway for continued investment in distribution and new product introductions.

Negative Factors

Weak cash generation

Cash conversion lags reported earnings and free cash flow has been small or negative in recent years. This persistent cash weakness constrains capex funding, debt reduction, and shareholder returns, and raises the likelihood of needing external financing during slower periods.

Increased leverage

Debt near parity with equity reduces financial flexibility and amplifies downside risk if revenue or margins deteriorate. Higher leverage increases interest burden and limits the company’s ability to pursue opportunistic investments or absorb cyclical shocks without raising costly capital.

Earnings & revenue volatility

Marked year-to-year swings in revenue and profit point to cyclicality and execution sensitivity, particularly given travel/lodging exposure. Volatility complicates long-term planning, weakens predictability of cash flows, and makes sustaining consistent investment or dividends more difficult.

Clarke Inc. Business Overview & Revenue Model

Company Description

Clarke Inc. is a private equity and venture capital firm specializing in investments in middle market, turnaround, PIPEs, bridge financing, recapitalization, and buyout companies. It invests in undervalued or underperforming businesses with hard assets. It invests in companies, securities or other assets such as real estate, which can be public or private entities. The firm primarily invests equity, debt and other securities. It invests in industries that have hard assets, including manufacturing, industrial, energy, materials, and real estate businesses. The firm invests in debt and equity securities of companies engaged in the oil and gas industry. It prefers to purchase well-priced equity securities rather than well-priced debt securities, and securities of oil service firms rather than E&P firms. The firm primarily invests in companies in Canada and United states of America. It seeks active involvement in the governance and/or management of the company it invests in. The firm may participate in Portfolio Company's board of directors. It makes balance sheet investments. Clarke Inc. was founded in 1997 and is based in Halifax, Canada.

How the Company Makes Money

Clarke Inc. generates revenue through several key streams, including the sale of its consumer products and industrial solutions. The company markets its products through a combination of direct sales, online platforms, and partnerships with retail distributors. Additionally, CKI capitalizes on economies of scale in its manufacturing processes, which allows for competitive pricing and increased profit margins. Significant partnerships with major retailers and online marketplaces enhance its distribution capabilities and market reach, contributing to consistent revenue growth. Furthermore, CKI invests in research and development to innovate its product offerings, ensuring alignment with market trends and customer demands, which bolsters its earnings potential.

Clarke Inc. Financial Statement Overview

Summary

Income statement profitability is solid in 2025, but earnings and revenue are volatile year-to-year. The balance sheet is moderately leveraged with debt roughly in line with equity and higher than prior years. Cash flow is the key weakness: cash conversion lags earnings and free cash flow is small and declining, with several prior years showing negative free cash flow.

Income Statement

Profitability is currently solid, with 2025 showing healthy gross profit and strong net income (about a mid-teens share of revenue), and margins generally positive in the post-2020 period. However, results are volatile year-to-year: revenue declined materially in 2025, and 2024 net income was unusually high versus other years, suggesting earnings power may not be consistent. The 2020 loss also highlights sensitivity to downturns in the travel/lodging cycle.

Balance Sheet

The balance sheet is moderately leveraged: 2025 debt is roughly in line with equity (about 1.0x), up meaningfully from prior years, which reduces flexibility if operating conditions soften. Equity has grown over time and return on equity is positive in recent years, but 2025 returns are modest versus 2024, indicating less efficient capital performance while leverage has increased.

Cash Flow

Cash generation is the weaker area. Operating cash flow is positive in 2024–2025, but it is low relative to reported earnings in both years, and free cash flow remains small and declining in 2025. Earlier periods included negative operating cash flow (2021 and 2020) and negative free cash flow (2020–2023), pointing to uneven cash conversion and a business that can require cash support during weaker cycles.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	81.60M	76.25M	81.61M	59.97M	60.02M
Gross Profit	34.19M	43.34M	34.68M	27.66M	34.66M
EBITDA	40.50M	30.63M	23.00M	21.30M	38.06M
Net Income	13.02M	37.82M	3.42M	3.23M	16.38M
Balance Sheet
Total Assets	633.31M	516.38M	395.13M	416.12M	384.63M
Cash, Cash Equivalents and Short-Term Investments	560.00K	809.00K	929.00K	1.09M	18.42M
Total Debt	285.36M	185.23M	126.18M	159.14M	136.51M
Total Liabilities	346.89M	239.44M	164.44M	201.15M	176.01M
Stockholders Equity	286.41M	276.94M	230.69M	214.97M	208.62M
Cash Flow
Free Cash Flow	4.18M	4.32M	-1.11M	-15.61M	-14.31M
Operating Cash Flow	16.10M	18.00M	8.16M	3.40M	-7.54M
Investing Cash Flow	-108.23M	-81.03M	-24.93M	-36.83M	31.06M
Financing Cash Flow	91.87M	62.91M	16.62M	16.09M	-7.82M

Clarke Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CKI, the sentiment is Neutral. The current price of 21 is below the 20-day moving average (MA) of 21.62, below the 50-day MA of 21.53, and below the 200-day MA of 24.82, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 40.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CKI.

Clarke Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GH	75 Outperform	C$243.19M	11.24	18.49%	5.06%	1.01%	6.68%
XTC	71 Outperform	C$284.18M	13.48	6.05%	6.21%	-3.53%	-17.19%
GBT	66 Neutral	C$414.30M	10.16	5.49%	2.80%	7.20%	-33.22%
MRE	63 Neutral	C$661.76M	7.04	-2.64%	1.93%	-7.25%	-143.07%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CKI	52 Neutral	C$278.69M	22.10	4.61%	―	9.29%	47.73%
ACQ	45 Neutral	C$463.24M	11.20	18.07%	―	-26.93%	84.17%

Clarke Inc. Corporate Events

Clarke Inc. Profit Falls on Lower Property Revaluations but Book Value Climbs in 2025

Clarke Inc. reported 2025 net income of $13.0 million, down sharply from $37.8 million a year earlier, as fair value gains on investment properties fell to $14.9 million from $34.0 million and interest and accretion expenses rose on higher long-term debt tied to construction. Despite weaker earnings and smaller revaluation gains, book value per share increased 6.2% to $21.08, with hotel and residential net operating income contributing strongly, while the share price at year-end was roughly in line with book value.

Fourth-quarter performance softened, with hotel and rental revenue flat at $16.7 million but quarterly results swinging to a small loss of $0.4 million versus a $21.5 million profit a year earlier, largely due to the absence of a prior-year $29.9 million fair value gain. Clarke also recorded higher other comprehensive losses in the quarter, driven mainly by a larger remeasurement loss on its pension benefit asset, even as total assets expanded significantly and leverage increased compared with 2024.

The most recent analyst rating on (TSE:CKI) stock is a Buy with a C$23.00 price target. To see the full list of analyst forecasts on Clarke Inc. stock, see the TSE:CKI Stock Forecast page.