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Clarke Inc. (TSE:CKI)
TSX:CKI
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Clarke Inc. (CKI) AI Stock Analysis

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TSE:CKI

Clarke Inc.

(TSX:CKI)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
C$31.00
▲(9.93% Upside)
Clarke Inc. demonstrates strong financial performance with robust revenue growth and a solid balance sheet. The stock's valuation is attractive, with a reasonable P/E ratio. However, technical indicators suggest potential short-term weakness, which slightly offsets the overall positive outlook.

Clarke Inc. (CKI) vs. iShares MSCI Canada ETF (EWC)

Clarke Inc. Business Overview & Revenue Model

Company DescriptionClarke 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 MoneyClarke 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
65
Positive
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
75
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue107.89M76.25M81.61M59.97M60.02M20.03M
Gross Profit44.97M43.34M34.68M27.66M34.66M-6.96M
EBITDA17.19M30.63M23.00M21.30M38.06M-6.51M
Net Income31.19M37.82M3.42M3.23M16.38M-19.21M
Balance Sheet
Total Assets576.99M516.38M395.13M416.12M384.63M311.03M
Cash, Cash Equivalents and Short-Term Investments994.00K809.00K929.00K1.09M18.42M2.73M
Total Debt0.00185.23M126.18M159.14M136.51M124.16M
Total Liabilities305.18M239.44M164.44M201.15M176.01M142.42M
Stockholders Equity271.81M276.94M230.69M214.97M208.62M168.60M
Cash Flow
Free Cash Flow-929.00K4.32M-1.11M-15.61M-14.31M-7.90M
Operating Cash Flow13.72M18.00M8.16M3.40M-7.54M-5.85M
Investing Cash Flow-98.81M-81.03M-24.93M-36.83M31.06M28.57M
Financing Cash Flow84.92M62.91M16.62M16.09M-7.82M-22.52M

Clarke Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price28.20
Price Trends
50DMA
30.08
Negative
100DMA
26.83
Positive
200DMA
24.94
Positive
Market Momentum
MACD
-0.34
Negative
RSI
43.87
Neutral
STOCH
40.88
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 28.2 is below the 20-day moving average (MA) of 28.28, below the 50-day MA of 30.08, and above the 200-day MA of 24.94, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 43.87 is Neutral, neither overbought nor oversold. The STOCH value of 40.88 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
594.55M9.9710.42%1.40%-17.14%135.28%
68
Neutral
C$384.95M12.6112.39%10.86%217.36%
64
Neutral
258.30M10.946.01%6.20%-3.50%-22.76%
64
Neutral
429.68M15.938.29%2.68%7.61%1.71%
62
Neutral
783.20M-12.41-4.32%1.86%-8.84%-148.15%
57
Neutral
751.92M-41.71-3.78%-20.36%50.19%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CKI
Clarke Inc.
28.20
3.72
15.20%
EXCOF
Exco Technologies
4.84
-0.72
-12.95%
MRETF
Martinrea International
7.71
-0.71
-8.43%
TSE:ACQ
AutoCanada
32.48
16.39
101.86%
TSE:GBT
BMTC Group Inc.
13.45
0.73
5.74%
TSE:TWC
TWC Enterprises
24.60
6.28
34.28%

Clarke Inc. Corporate Events

Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Clarke Inc. Strengthens Financial Position with Successful Refinancing
Positive
Aug 14, 2025

Clarke Inc. has successfully refinanced its credit facilities, securing a $250 million facility to support the stabilization and completion of its Talisman development. This move has increased the company’s liquidity and improved its financial position. The refinancing of an investment property in St. John’s, NL, further validates Clarke’s strategy of converting properties to enhance asset value and secure better financing terms. Despite a net loss in the second quarter of 2025 due to interest expenses and pension costs, the company’s hotel and rental revenue increased, driven by the operations of the first phase of the Talisman.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 25, 2025