NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:NCI - CA62940V2030 - Common Stock
1.34 CAD
-0.02 (-1.47%)
Overall NCI gets a fundamental rating of 7 out of 10. We evaluated NCI against 64 industry peers in the Software industry. While NCI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NCI is growing strongly while it also seems undervalued. This is an interesting combination This makes NCI very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
In the past year NCI was profitable.
NCI had a negative operating cash flow in the past year.
Of the past 5 years NCI 4 years were profitable.
NCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NCI has a better Return On Assets (17.08%) than 96.88% of its industry peers.
With an excellent Return On Equity value of 28.01%, NCI belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
NCI has a Return On Invested Capital of 23.79%. This is amongst the best in the industry. NCI outperforms 96.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.08% | ||
| ROE | 28.01% | ||
| ROIC | 23.79% |
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
The Profit Margin of NCI (9.85%) is better than 87.50% of its industry peers.
In the last couple of years the Profit Margin of NCI has grown nicely.
NCI has a better Operating Margin (13.86%) than 82.81% of its industry peers.
In the last couple of years the Operating Margin of NCI has declined.
The Gross Margin of NCI (35.76%) is worse than 60.94% of its industry peers.
NCI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.86% | ||
| PM (TTM) | 9.85% | ||
| GM | 35.76% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NCI is creating value.
The number of shares outstanding for NCI has been increased compared to 1 year ago.
The number of shares outstanding for NCI has been increased compared to 5 years ago.
NCI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.28 indicates that NCI is not in any danger for bankruptcy at the moment.
NCI's Altman-Z score of 5.28 is fine compared to the rest of the industry. NCI outperforms 79.69% of its industry peers.
NCI has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
NCI's Debt to Equity ratio of 0.19 is in line compared to the rest of the industry. NCI outperforms 54.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.28 |
ROIC/WACC2.38
WACC10%
2.3 Liquidity
A Current Ratio of 3.13 indicates that NCI has no problem at all paying its short term obligations.
NCI has a better Current ratio (3.13) than 76.56% of its industry peers.
A Quick Ratio of 3.13 indicates that NCI has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.13, NCI is doing good in the industry, outperforming 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.26% 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.
The Revenue has grown by 62.61% in the past year. This is a very strong growth!
The Revenue has been growing by 45.43% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)15.26%
EPS 3Y68.04%
EPS 5YN/A
EPS Q2Q%-15.85%
Revenue 1Y (TTM)62.61%
Revenue growth 3Y67.72%
Revenue growth 5Y45.43%
Sales Q2Q%42.22%
3.2 Future
NCI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.46% yearly.
The Revenue is expected to grow by 31.35% on average over the next years. This is a very strong growth
EPS Next Y8.4%
EPS Next 2Y22.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year46.65%
Revenue Next 2Y31.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.57, the valuation of NCI can be described as very reasonable.
Based on the Price/Earnings ratio, NCI is valued cheaper than 93.75% of the companies in the same industry.
NCI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
NCI is valuated cheaply with a Price/Forward Earnings ratio of 4.70.
NCI's Price/Forward Earnings ratio is rather cheap when compared to the industry. NCI is cheaper than 93.75% of the companies in the same industry.
NCI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 4.7 |
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 89.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.16 |
4.3 Compensation for Growth
NCI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of NCI may justify a higher PE ratio.
NCI's earnings are expected to grow with 22.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y22.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NCI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX-V:NCI (12/31/2025, 7:00:00 PM)
1.34
-0.02 (-1.47%)
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 Cap63.44M
Revenue(TTM)76.65M
Net Income(TTM)7.55M
Analysts83.64
Price Target4.05 (202.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-59.73%
Min EPS beat(2)-85.29%
Max EPS beat(2)-34.18%
EPS beat(4)1
Avg EPS beat(4)-14.44%
Min EPS beat(4)-85.29%
Max EPS beat(4)94.17%
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)-2.48%
Min Revenue beat(2)-5.69%
Max Revenue beat(2)0.73%
Revenue beat(4)3
Avg Revenue beat(4)1.13%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)8.23%
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)-4.8%
EPS NQ rev (1m)-33.33%
EPS NQ rev (3m)-42.86%
EPS NY rev (1m)-6.25%
EPS NY rev (3m)-4.76%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 4.7 | ||
| P/S | 0.83 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.35 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 5.16 |
EPS(TTM)0.14
EY10.45%
EPS(NY)0.28
Fwd EY21.27%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)-0.1
OCFYN/A
SpS1.62
BVpS0.57
TBVpS0.5
PEG (NY)1.14
PEG (5Y)N/A
Graham Number1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.08% | ||
| ROE | 28.01% | ||
| ROCE | 33.04% | ||
| ROIC | 23.79% | ||
| ROICexc | 29.91% | ||
| ROICexgc | 34.7% | ||
| OM | 13.86% | ||
| PM (TTM) | 9.85% | ||
| GM | 35.76% | ||
| 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-Score5
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 101.9% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 31.2 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 | ||
| Altman-Z | 5.28 |
F-Score5
WACC10%
ROIC/WACC2.38
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)15.26%
EPS 3Y68.04%
EPS 5YN/A
EPS Q2Q%-15.85%
EPS Next Y8.4%
EPS Next 2Y22.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)62.61%
Revenue growth 3Y67.72%
Revenue growth 5Y45.43%
Sales Q2Q%42.22%
Revenue Next Year46.65%
Revenue Next 2Y31.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y53.89%
EBIT growth 3Y62.24%
EBIT growth 5YN/A
EBIT Next Year20.38%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1129.52%
FCF growth 3Y85.08%
FCF growth 5YN/A
OCF growth 1Y-287.68%
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.
What is the valuation status for NCI stock?
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.
What is the expected EPS growth for NTG CLARITY NETWORKS INC (NCI.CA) stock?
The Earnings per Share (EPS) of NTG CLARITY NETWORKS INC (NCI.CA) is expected to grow by 8.4% in the next year.