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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 57 (OpenAI - Gpt-5.6Sol)
Rating:57Neutral
Price Target:
C$24.50
▲(2.13% Upside)
Action:Reiterated
Date:08/19/26
The score is held back primarily by financial risk: a sharp increase in leverage and weak cash conversion (negative free cash flow despite strong reported earnings) outweigh strong top-line growth and high reported profitability. Valuation is a clear positive due to the low P/E, and technical indicators are moderately supportive, but they do not fully offset the balance sheet and cash flow concerns.
Positive Factors
Revenue Growth
Strong TTM revenue growth indicates expanding business activity and demand. If sustained, this can improve operating leverage and support future earnings, although the company must convert growth into consistent cash generation.
Negative Factors
Sharp Leverage Increase
The major increase in debt materially reduces financial flexibility and raises exposure to operating, refinancing, and funding shocks. High leverage can also limit investment capacity and make earnings less resilient through business cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Strong TTM revenue growth indicates expanding business activity and demand. If sustained, this can improve operating leverage and support future earnings, although the company must convert growth into consistent cash generation.
Read all positive factors

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

Clarke Inc. Business Overview & Revenue Model

Company Description
Established in 1997 and based in Halifax, Canada, Clarke Inc. functions as a private equity and venture capital firm. It targets a diverse range of investment opportunities, including middle-market enterprises, turnaround situations, PIPEs, bridge...
How the Company Makes Money
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Clarke Inc. Financial Statement Overview

Summary
Income statement strength (TTM revenue +26.7% and very high reported margins) is offset by major risk flags: leverage jumped sharply (debt ~285M to ~1.34B; debt/equity ~3.33x) and cash conversion deteriorated (TTM operating cash flow ~4.6M and negative free cash flow ~-5.5M despite ~80.1M net income). Year-to-year margin volatility further reduces confidence in durability.
Income Statement
74
Positive
Balance Sheet
38
Negative
Cash Flow
27
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue100.41M81.60M76.25M81.61M59.97M60.02M
Gross Profit20.30M34.19M43.34M34.68M27.66M34.66M
EBITDA123.10M40.50M30.63M23.00M21.30M38.06M
Net Income80.11M13.02M37.82M3.42M3.23M16.38M
Balance Sheet
Total Assets1.87B633.31M516.38M395.13M416.12M384.63M
Cash, Cash Equivalents and Short-Term Investments21.78M560.00K809.00K929.00K1.09M18.42M
Total Debt1.34B285.36M185.23M126.18M159.14M136.51M
Total Liabilities1.47B346.89M239.44M164.44M201.15M176.01M
Stockholders Equity402.05M286.41M276.94M230.69M214.97M208.62M
Cash Flow
Free Cash Flow-5.51M4.18M4.32M-1.11M-15.61M-14.31M
Operating Cash Flow4.56M16.10M18.00M8.16M3.40M-7.54M
Investing Cash Flow-76.84M-108.23M-81.03M-24.93M-36.83M31.06M
Financing Cash Flow91.24M91.87M62.91M16.62M16.09M-7.82M

Clarke Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price23.99
Price Trends
50DMA
23.17
Positive
100DMA
24.38
Negative
200DMA
23.19
Positive
Market Momentum
MACD
0.16
Negative
RSI
56.99
Neutral
STOCH
56.54
Neutral
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 23.99 is above the 20-day moving average (MA) of 23.60, above the 50-day MA of 23.17, and above the 200-day MA of 23.19, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 56.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
67
Neutral
C$314.14M12.486.02%5.19%0.52%5.03%
66
Neutral
C$397.67M9.077.97%2.85%-0.75%52.17%
65
Neutral
C$704.65M5.967.89%1.98%-2.65%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
C$516.76M16.696.64%0.35%
57
Neutral
C$371.02M4.0825.36%24.08%162.91%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CKI
Clarke Inc.
23.99
-5.50
-18.65%
TSE:XTC
Exco Technologies
8.11
1.70
26.60%
TSE:MRE
Martinrea International
10.19
0.30
3.04%
TSE:ACQ
AutoCanada
22.36
-10.83
-32.63%
TSE:GBT
BMTC Group Inc.
12.75
0.30
2.44%
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: Aug 19, 2026