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Clarke Inc. (CKI) AI Stock Analysis
Clarke Inc.
(TSX:CKI)
The overall score is heavily pressured by the company's precarious financial state. The core issue is a severe disconnect between reported profits and actual cash generation, with negative free cash flow and a massively leveraged balance sheet posing significant risks. While short-term technicals show some positive momentum, this is outweighed by fundamental instability. The extremely low P/E ratio is a value trap, reflecting unsustainable earnings rather than a genuine bargain.
Clarke Inc. (CKI) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 311.24M
- Dividend Yield
- ―
- Average Volume (3M)
- 5,794
- Price to Earnings (P/E)
- 4.1
- Beta (1Y)
- -0.10
- Revenue Growth
- 24.08%
- EPS Growth
- 162.91%
- Country
- Canada
- Employees
- 500
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Travel Lodging
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 fi...
How the Company Makes Money
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Clarke Inc. Financial Statement Overview
Summary
Financial health is critically weak. While TTM net income is high, it is unsustainable and masks a deteriorating gross margin (20.2%). Cash flow is alarmingly poor, with operating cash flow near zero and negative free cash flow, indicating profits are not converting to cash. The balance sheet is highly leveraged (debt-to-equity of 3.33), creating substantial financial risk.
Income Statement
35NegativeBalance Sheet
30NegativeCash Flow
15Very Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 100.41M | 81.60M | 76.25M | 81.61M | 59.97M | 60.02M |
| Gross Profit | 20.30M | 34.19M | 43.34M | 34.68M | 27.66M | 34.66M |
| EBITDA | 123.10M | 40.50M | 30.63M | 23.00M | 21.30M | 38.06M |
| Net Income | 80.11M | 13.02M | 37.82M | 3.42M | 3.23M | 16.38M |
Balance Sheet | ||||||
| Total Assets | 1.87B | 633.31M | 516.38M | 395.13M | 416.12M | 384.63M |
| Cash, Cash Equivalents and Short-Term Investments | 21.78M | 560.00K | 809.00K | 929.00K | 1.09M | 18.42M |
| Total Debt | 1.34B | 285.36M | 185.23M | 126.18M | 159.14M | 136.51M |
| Total Liabilities | 1.47B | 346.89M | 239.44M | 164.44M | 201.15M | 176.01M |
| Stockholders Equity | 402.05M | 286.41M | 276.94M | 230.69M | 214.97M | 208.62M |
Cash Flow | ||||||
| Free Cash Flow | -5.51M | 4.18M | 4.32M | -1.11M | -15.61M | -14.31M |
| Operating Cash Flow | 4.56M | 16.10M | 18.00M | 8.16M | 3.40M | -7.54M |
| Investing Cash Flow | -76.84M | -108.23M | -81.03M | -24.93M | -36.83M | 31.06M |
| Financing Cash Flow | 91.24M | 91.87M | 62.91M | 16.62M | 16.09M | -7.82M |
Clarke Inc. Technical Analysis
Price Trends
Market Momentum
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 24.15 is above the 20-day moving average (MA) of 23.76, above the 50-day MA of 23.43, and above the 200-day MA of 23.47, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 28.26 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
TSE:XTC74Outperform
TSE:GBT68Neutral
TSE:MRE65Neutral
TSE:ACQ51Neutral- TSE:CKI45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:XTC | 74Outperform | CAD 316.77M | 13.00 | 6.04% | 4.97% | 0.52% | 5.03% |
| TSE:GBT | 68Neutral | CAD 399.74M | 10.05 | 6.81% | 2.86% | -1.49% | 44.76% |
| TSE:MRE | 65Neutral | CAD 661.96M | 5.53 | 7.89% | 2.11% | -2.65% | ― |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| TSE:ACQ | 51Neutral | CAD 652.16M | 21.17 | 6.64% | ― | 0.35% | ― |
| TSE:CKI | 45Neutral | CAD 369.77M | 4.08 | 25.36% | ― | 24.08% | 162.91% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:CKI | Clarke Inc. | 24.00 | -1.00 | -4.00% | |
| TSE:XTC | Exco Technologies Limited | 8.45 | 2.35 | 38.57% | |
| TSE:MRE | Martinrea International Inc. | 9.46 | -0.44 | -4.42% | |
| TSE:ACQ | AutoCanada Inc. | 28.37 | 3.34 | 13.34% | |
| TSE:GBT | BMTC Group Inc. | 12.57 | -0.23 | -1.80% |
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