Clarke Inc. (CKI) AI Stock Analysis

• Market Cap: C$385.64M
• Dividend Yield: N/A
• Average Volume (3M): 1.90K
• Price to Earnings (P/E): 12.6
• Beta (1Y): -0.26
• Revenue Growth: 10.86%
• EPS Growth: 217.36%
• Country: CA
• Employees: 550
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Travel Lodging
• EPS (TTM): >-0.01
• Shares Outstanding: 13,650,857
• 10 Day Avg. Volume: 1,910
• 30 Day Avg. Volume: 1,902
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: C$34.00
• Price Target Upside: 20.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: C$34.00 ▲(20.35% Upside)

Clarke Inc. demonstrates strong financial performance with significant revenue growth and a solid balance sheet. The technical analysis supports a positive trend, while the valuation is reasonable. The absence of earnings call data and corporate events does not impact the score.

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 multiple streams, primarily by selling its manufactured products to both commercial and industrial clients in various sectors. Key revenue streams include the sale of industrial machinery, components, and technology solutions, as well as ongoing service contracts and maintenance agreements. Additionally, CKI has established strategic partnerships with other companies and organizations that enhance its product offerings and expand its market reach. These collaborations often lead to joint ventures or co-development agreements, further contributing to the company's income. The company's focus on sustainable energy solutions also positions it to capitalize on the growing demand for green technologies, providing an additional revenue source through the sale of renewable energy products and services.

Clarke Inc. Financial Statement Overview

Summary

Clarke Inc. shows strong revenue growth and improved profitability, with a robust balance sheet featuring no debt and a solid equity base. Cash flow management has improved, but operational cash generation needs further enhancement.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	107.89M	76.25M	81.61M	59.97M	60.02M	20.03M
Gross Profit	44.97M	43.34M	34.68M	27.66M	34.66M	-6.96M
EBITDA	17.19M	30.63M	23.00M	21.30M	38.06M	-6.51M
Net Income	31.19M	37.82M	3.42M	3.23M	16.38M	-19.21M
Balance Sheet
Total Assets	576.99M	516.38M	395.13M	416.12M	384.63M	311.03M
Cash, Cash Equivalents and Short-Term Investments	994.00K	809.00K	929.00K	1.09M	18.42M	2.73M
Total Debt	0.00	185.23M	126.18M	159.14M	136.51M	124.16M
Total Liabilities	305.18M	239.44M	164.44M	201.15M	176.01M	142.42M
Stockholders Equity	271.81M	276.94M	230.69M	214.97M	208.62M	168.60M
Cash Flow
Free Cash Flow	-929.00K	4.32M	-1.11M	-15.61M	-14.31M	-7.90M
Operating Cash Flow	13.72M	18.00M	8.16M	3.40M	-7.54M	-5.85M
Investing Cash Flow	-98.81M	-81.03M	-24.93M	-36.83M	31.06M	28.57M
Financing Cash Flow	84.92M	62.91M	16.62M	16.09M	-7.82M	-22.52M

Clarke Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 28.25 is below the 20-day moving average (MA) of 31.04, below the 50-day MA of 29.23, and above the 200-day MA of 24.57, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 35.62 is Neutral, neither overbought nor oversold. The STOCH value of 26.66 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
CKI	69 Neutral	C$385.64M	12.63	12.39%	―	10.86%	217.36%
Sector *	61 Neutral	$17.96B	13.14	-5.29%	3.00%	1.25%	-13.95%
EXCOF	―	$187.35M	11.02	6.01%	6.11%	―	―
MRETF	―	$574.08M	5.32	-4.10%	1.92%	―	―
TWC	80 Outperform	C$573.39M	9.40	10.84%	1.51%	-17.14%	135.28%
GBT	61 Neutral	C$428.15M	14.71	5.95%	2.82%	5.97%	174.18%
ACQ	57 Neutral	C$755.62M	―	20.23%	―	-20.36%	50.19%

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.