Clarke Inc. (CKI) AI Stock Analysis

• Market Cap: C$389.05M
• Dividend Yield: N/A
• Average Volume (3M): 1.06K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.14
• Revenue Growth: 3.76%
• EPS Growth: 992.15%
• Country: CA
• Employees: 550
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Travel Lodging
• EPS (TTM): -0.17
• Shares Outstanding: 13,650,857
• 10 Day Avg. Volume: 312
• 30 Day Avg. Volume: 1,057
• PEG Ratio: -0.94
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 69.35
• 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

• Rating: 68 Neutral
• Price Target: ―

Clarke Inc. shows a strong financial trajectory with significant revenue growth and no debt, making it financially stable. While the technical indicators suggest neutral momentum, the stock's valuation appears reasonable. The positive corporate event further strengthens the investment case.

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

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Clarke Inc. Financial Statement Overview

Summary

Clarke Inc. displays strong financial performance with significant revenue growth and improved profitability. The company's balance sheet is robust with no debt and a strong equity base. Cash flow has improved, but there is room for better operational cash generation.

Income Statement

Clarke Inc. has shown significant revenue growth over the years, with a notable increase in total revenue from $59.97 million in 2022 to $106.78 million in 2024. The net profit margin has also improved, reaching 35.4% in 2024 from 4.2% in 2023. However, the EBIT margin shows inconsistency, being at 0% in 2024 due to no EBIT reported, which might indicate volatility in operational efficiency.

Balance Sheet

The company has maintained a strong equity position with a debt-to-equity ratio of 0 in 2024, indicating no reliance on debt. The equity ratio stands at 53.6% in 2024, reflecting a strong equity base compared to total assets. The return on equity (ROE) is impressive at 13.7% in 2024, suggesting efficient use of equity to generate profits.

Cash Flow

Free cash flow has improved significantly from a loss in previous years to a positive $4.32 million in 2024, indicating better cash management. The operating cash flow to net income ratio is 0.48 in 2024, showing that operational activities are generating cash relative to net income, though there is room for improvement.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.25M	81.61M	59.97M	60.02M	20.03M
Gross Profit	43.34M	34.68M	27.66M	34.66M	-6.96M
EBITDA	30.63M	23.00M	21.30M	38.06M	-6.51M
Net Income	37.82M	3.42M	3.23M	16.38M	-19.21M
Balance Sheet
Total Assets	516.38M	395.13M	416.12M	384.63M	311.03M
Cash, Cash Equivalents and Short-Term Investments	809.00K	929.00K	1.09M	18.42M	2.73M
Total Debt	0.00	126.18M	159.14M	136.51M	124.16M
Total Liabilities	239.44M	164.44M	201.15M	176.01M	142.42M
Stockholders Equity	276.94M	230.69M	214.97M	208.62M	168.60M
Cash Flow
Free Cash Flow	4.32M	-1.11M	-15.61M	-14.31M	-7.90M
Operating Cash Flow	18.00M	8.16M	3.40M	-7.54M	-5.85M
Investing Cash Flow	-81.03M	-24.93M	-36.83M	31.06M	28.57M
Financing Cash Flow	62.91M	16.62M	16.09M	-7.82M	-22.52M

Clarke Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CKI, the sentiment is Positive. The current price of 28.5 is above the 20-day moving average (MA) of 26.48, above the 50-day MA of 24.06, and above the 200-day MA of 23.51, indicating a bullish trend. The MACD of 1.42 indicates Negative momentum. The RSI at 87.77 is Negative, neither overbought nor oversold. The STOCH value of 98.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CKI.

Clarke Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CKI	68 Neutral	C$389.05M	12.03	12.96%	―	3.76%	992.15%
Sector *	57 Neutral	HK$25.90B	4.13	-2.03%	5.77%	-0.31%	-67.64%
EXCOF	―	$185.67M	9.72	6.86%	1.22%	―	―
MRETF	―	$457.64M	5.32	-3.98%	0.37%	―	―
TWC	75 Outperform	C$559.58M	13.28	7.70%	1.45%	-17.70%	39.37%
GBT	74 Outperform	C$447.18M	15.19	5.95%	2.60%	5.97%	174.18%
ACQ	57 Neutral	C$658.16M	―	9.31%	―	-18.16%	-275.09%

Clarke Inc. Corporate Events

Clarke Inc. Reports Strong Financial Growth in 2024

Clarke Inc. reported a significant increase in net income for the year ended December 31, 2024, with earnings rising to $37.8 million from $3.4 million in 2023. This improvement was primarily driven by substantial fair value adjustment gains on investment and hotel properties. The company’s comprehensive income also saw a notable rise, reaching $46.4 million, attributed to increased earnings and larger revaluation gains. Clarke’s book value per common share increased by 20.1%, and its earnings per share rose to $2.71. In the fourth quarter of 2024, Clarke’s net income was $21.5 million, with hotel and rental revenue increasing due to the opening of a new residential development phase.