Clarke Inc. Fundamental Analysis
Clarke Inc. (CLKFF) shows strong financial fundamentals with a PE ratio of 8.29, profit margin of 32.72%, and ROE of 10.42%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 7.02%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CLKFF's fundamental strength across five key dimensions:
Efficiency Score
WeakCLKFF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCLKFF trades at attractive valuation levels.
Growth Score
ModerateCLKFF shows steady but slowing expansion.
Financial Health Score
ModerateCLKFF shows balanced financial health with some risks.
Profitability Score
ModerateCLKFF maintains healthy but balanced margins.
Key Financial Metrics
Is CLKFF Expensive or Cheap?
P/E Ratio
CLKFF trades at 8.29 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CLKFF's PEG of -0.78 indicates potential undervaluation.
Price to Book
The market values Clarke Inc. at 0.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.32 times EBITDA. This is generally considered low.
How Well Does CLKFF Make Money?
Net Profit Margin
For every $100 in sales, Clarke Inc. keeps $32.72 as profit after all expenses.
Operating Margin
Core operations generate 26.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.42 in profit for every $100 of shareholder equity.
ROA
Clarke Inc. generates $4.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Clarke Inc. produces operating cash flow of $27.70M, showing steady but balanced cash generation.
Free Cash Flow
Clarke Inc. generates strong free cash flow of $12.72M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.98 in free cash annually.
FCF Yield
CLKFF converts 2.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.78
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How CLKFF Stacks Against Its Sector Peers
| Metric | CLKFF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.29 | 23.90 | Better (Cheaper) |
| ROE | 10.42% | 1176.00% | Weak |
| Net Margin | 32.72% | 2549.00% | Weak |
| Debt/Equity | 0.52 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 0.05 | 2.83 | Weak Liquidity |
| ROA | 4.45% | -8407.00% (disorted) | Weak |
CLKFF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Clarke Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
371.06%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
178.37%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
418.32%
Industry Style: Cyclical, Growth, Discretionary
High Growth