Clarke Inc. (CKI) AI Stock Analysis

• Market Cap: C$287.59M
• Dividend Yield: N/A
• Average Volume (3M): 633.00
• Price to Earnings (P/E): 8.4
• Beta (1Y): -0.30
• Revenue Growth: 9.29%
• EPS Growth: 47.73%
• Country: CA
• Employees: 550
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 1.16
• Shares Outstanding: 13,629,857
• 10 Day Avg. Volume: 830
• 30 Day Avg. Volume: 633
• PEG Ratio: <0.01
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 4.32
• P/FCF Ratio: 76.17
• 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: 66 Neutral
• Price Target: C$24.00 ▲(12.94% Upside)

Clarke Inc.'s overall stock score is driven by its strong financial performance and attractive valuation. However, technical indicators suggest bearish momentum, which tempers the overall score. The company's robust financial health and undervaluation are significant strengths, while the current market sentiment presents a risk.

Positive Factors

Revenue Growth

The substantial increase in revenue indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

A debt-free balance sheet enhances financial stability and flexibility, allowing for strategic investments and resilience against economic downturns.

Profitability Improvement

Improved profit margins reflect operational efficiency and cost management, contributing to sustainable earnings growth and shareholder value.

Negative Factors

Operational Cash Generation

The relatively low cash flow conversion indicates potential challenges in converting earnings into cash, which could impact liquidity and investment capacity.

EBIT Margin Volatility

Volatility in EBIT margins suggests inconsistent operational efficiency, which can affect profitability and strategic planning.

Operational Efficiency

Inconsistent EBIT margins may indicate challenges in managing operational costs, which could hinder long-term profitability and competitiveness.

Clarke Inc. Business Overview & Revenue Model

Company Description

Clarke Inc. (CKI) is a diversified company operating in the manufacturing and distribution sectors, primarily focused on producing high-quality consumer goods and industrial products. The company is known for its innovative solutions in the areas of home and garden, automotive accessories, and various industrial applications. With a commitment to sustainability and efficiency, CKI leverages advanced technologies to deliver exceptional value to its customers while contributing positively to the environment.

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

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	112.98M	76.25M	81.61M	59.97M	60.02M	20.03M
Gross Profit	71.06M	43.34M	34.68M	27.66M	34.66M	-6.96M
EBITDA	17.81M	30.63M	23.00M	21.30M	38.06M	-6.51M
Net Income	34.85M	37.82M	3.42M	3.23M	16.38M	-19.21M
Balance Sheet
Total Assets	621.30M	516.38M	395.13M	416.12M	384.63M	311.03M
Cash, Cash Equivalents and Short-Term Investments	559.00K	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	331.58M	239.44M	164.44M	201.15M	176.01M	142.42M
Stockholders Equity	289.72M	276.94M	230.69M	214.97M	208.62M	168.60M
Cash Flow
Free Cash Flow	5.87M	4.32M	-1.11M	-15.61M	-14.31M	-7.90M
Operating Cash Flow	19.04M	18.00M	8.16M	3.40M	-7.54M	-5.85M
Investing Cash Flow	-106.86M	-81.03M	-24.93M	-36.83M	31.06M	28.57M
Financing Cash Flow	87.08M	62.91M	16.62M	16.09M	-7.82M	-22.52M

Clarke Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CKI, the sentiment is Negative. The current price of 21.25 is below the 20-day moving average (MA) of 22.05, below the 50-day MA of 23.38, and below the 200-day MA of 25.10, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 26.93 is Positive, neither overbought nor oversold. The STOCH value of 47.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CKI.

Clarke Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XTC	71 Outperform	C$256.64M	10.68	6.05%	6.21%	-3.53%	-17.19%
GH	68 Neutral	C$245.06M	11.87	18.14%	5.06%	1.01%	6.68%
CKI	66 Neutral	C$287.59M	8.36	12.79%	―	9.29%	47.73%
GBT	63 Neutral	C$410.62M	14.28	5.60%	2.80%	7.20%	-33.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MRE	51 Neutral	C$752.63M	-18.29	-2.64%	1.93%	-7.25%	-143.07%
ACQ	40 Underperform	C$549.82M	-69.85	18.07%	―	-26.93%	84.17%

Clarke Inc. Corporate Events

Clarke Inc. Reports Strong Q3 2025 Results with Increased Net Income

Clarke Inc. reported a net income of $15.8 million for the third quarter of 2025, driven by significant fair value adjustment gains on investment properties. The company’s financial performance was bolstered by improved residential net operating income from the Talisman development and revaluation gains on certain hotels, despite increased depreciation, amortization, and interest costs. Clarke’s book value per common share rose by 6.6% during the quarter, reflecting a strong operational performance that could positively impact its market positioning.