NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada - TSX-V:NCI - CA62940V2030 - Common Stock
1.79 CAD
+0.05 (+2.87%)
NCI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 63 industry peers in the Software industry. NCI has an excellent profitability rating, but there are some minor concerns on its financial health. NCI is evaluated to be cheap and growing strongly. This does not happen too often! This makes NCI very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
NCI had positive earnings in the past year.
NCI had a negative operating cash flow in the past year.
NCI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NCI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 23.92%, NCI belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
NCI's Return On Equity of 48.54% is amongst the best of the industry. NCI outperforms 95.24% of its industry peers.
NCI has a Return On Invested Capital of 37.82%. This is amongst the best in the industry. NCI outperforms 98.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.92% | ||
| ROE | 48.54% | ||
| ROIC | 37.82% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 11.05%, NCI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
NCI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.29%, NCI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
NCI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 36.56%, NCI perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
In the last couple of years the Gross Margin of NCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.29% | ||
| PM (TTM) | 11.05% | ||
| GM | 36.56% |
OM growth 3Y-3.27%
OM growth 5YN/A
PM growth 3Y14.92%
PM growth 5YN/A
GM growth 3Y-12.47%
GM growth 5Y7.3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NCI is creating value.
NCI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for NCI has been increased compared to 5 years ago.
Compared to 1 year ago, NCI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.71 indicates that NCI is not in any danger for bankruptcy at the moment.
The Altman-Z score of NCI (6.71) is better than 74.60% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that NCI is not too dependend on debt financing.
NCI has a Debt to Equity ratio (0.36) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.71 |
ROIC/WACC3.73
WACC10.14%
2.3 Liquidity
NCI has a Current Ratio of 2.47. This indicates that NCI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NCI (2.47) is better than 74.60% of its industry peers.
A Quick Ratio of 2.47 indicates that NCI has no problem at all paying its short term obligations.
NCI has a better Quick ratio (2.47) than 74.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.19% over the past year.
NCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.04% yearly.
NCI shows a strong growth in Revenue. In the last year, the Revenue has grown by 78.50%.
Measured over the past years, NCI shows a very strong growth in Revenue. The Revenue has been growing by 45.43% on average per year.
EPS 1Y (TTM)51.19%
EPS 3Y68.04%
EPS 5YN/A
EPS Q2Q%-83.75%
Revenue 1Y (TTM)78.5%
Revenue growth 3Y67.72%
Revenue growth 5Y45.43%
Sales Q2Q%51.15%
3.2 Future
NCI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.92% yearly.
The Revenue is expected to grow by 32.26% on average over the next years. This is a very strong growth
EPS Next Y13.82%
EPS Next 2Y23.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year45.56%
Revenue Next 2Y32.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.19, the valuation of NCI can be described as reasonable.
95.24% of the companies in the same industry are more expensive than NCI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.89, NCI is valued rather cheaply.
NCI is valuated cheaply with a Price/Forward Earnings ratio of 6.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NCI indicates a rather cheap valuation: NCI is cheaper than 95.24% of the companies listed in the same industry.
NCI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 6.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NCI indicates a rather cheap valuation: NCI is cheaper than 90.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.95 |
4.3 Compensation for Growth
NCI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of NCI may justify a higher PE ratio.
A more expensive valuation may be justified as NCI's earnings are expected to grow with 23.92% in the coming years.
PEG (NY)0.81
PEG (5Y)N/A
EPS Next 2Y23.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for NCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:NCI (10/24/2025, 7:00:00 PM)
1.79
+0.05 (+2.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners0.13%
Inst Owner ChangeN/A
Ins Owners24.6%
Ins Owner ChangeN/A
Market Cap84.74M
Revenue(TTM)70.46M
Net Income(TTM)7.78M
Analysts83.64
Price Target4.25 (137.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-58.88%
Min EPS beat(2)-85.29%
Max EPS beat(2)-32.46%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)1.27%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)8.23%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 6.13 | ||
| P/S | 1.2 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.28 | ||
| P/tB | 6.85 | ||
| EV/EBITDA | 6.95 |
EPS(TTM)0.16
EY8.94%
EPS(NY)0.29
Fwd EY16.3%
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)-0.02
OCFYN/A
SpS1.49
BVpS0.34
TBVpS0.26
PEG (NY)0.81
PEG (5Y)N/A
Graham Number1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.92% | ||
| ROE | 48.54% | ||
| ROCE | 52.53% | ||
| ROIC | 37.82% | ||
| ROICexc | 42.18% | ||
| ROICexgc | 51.88% | ||
| OM | 16.29% | ||
| PM (TTM) | 11.05% | ||
| GM | 36.56% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-3.27%
OM growth 5YN/A
PM growth 3Y14.92%
PM growth 5YN/A
GM growth 3Y-12.47%
GM growth 5Y7.3%
F-Score6
Asset Turnover2.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 80.36% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 28.9 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 | ||
| Altman-Z | 6.71 |
F-Score6
WACC10.14%
ROIC/WACC3.73
Cap/Depr(3y)274.99%
Cap/Depr(5y)720.23%
Cap/Sales(3y)6.12%
Cap/Sales(5y)8.5%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)51.19%
EPS 3Y68.04%
EPS 5YN/A
EPS Q2Q%-83.75%
EPS Next Y13.82%
EPS Next 2Y23.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)78.5%
Revenue growth 3Y67.72%
Revenue growth 5Y45.43%
Sales Q2Q%51.15%
Revenue Next Year45.56%
Revenue Next 2Y32.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y124.63%
EBIT growth 3Y62.24%
EBIT growth 5YN/A
EBIT Next Year59.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-354.73%
FCF growth 3Y85.08%
FCF growth 5YN/A
OCF growth 1Y-129.64%
OCF growth 3Y12.61%
OCF growth 5Y234.98%
NTG CLARITY NETWORKS INC / NCI.CA FAQ
What is the fundamental rating for NCI stock?
ChartMill assigns a fundamental rating of 7 / 10 to NCI.CA.
Can you provide the valuation status for NTG CLARITY NETWORKS INC?
ChartMill assigns a valuation rating of 7 / 10 to NTG CLARITY NETWORKS INC (NCI.CA). This can be considered as Undervalued.
Can you provide the profitability details for NTG CLARITY NETWORKS INC?
NTG CLARITY NETWORKS INC (NCI.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for NCI stock?
The Price/Earnings (PE) ratio for NTG CLARITY NETWORKS INC (NCI.CA) is 11.19 and the Price/Book (PB) ratio is 5.28.
Can you provide the financial health for NCI stock?
The financial health rating of NTG CLARITY NETWORKS INC (NCI.CA) is 6 / 10.