NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:NCI - CA62940V2030 - Common Stock
1.26 CAD
-0.01 (-0.79%)
NCI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 65 industry peers in the Software industry. While NCI has a great profitability rating, there are some minor concerns on its financial health. NCI is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make NCI a good candidate 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.
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 Return On Assets of 17.08%. This is amongst the best in the industry. NCI outperforms 96.92% of its industry peers.
Looking at the Return On Equity, with a value of 28.01%, NCI belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
NCI's Return On Invested Capital of 23.79% is amongst the best of the industry. NCI outperforms 96.92% 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
NCI has a Profit Margin of 9.85%. This is amongst the best in the industry. NCI outperforms 86.15% of its industry peers.
NCI's Profit Margin has improved in the last couple of years.
NCI has a better Operating Margin (13.86%) than 81.54% of its industry peers.
NCI's Operating Margin has declined in the last couple of years.
NCI has a worse Gross Margin (35.76%) than 61.54% 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
NCI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for NCI has been increased compared to 1 year ago.
Compared to 5 years ago, NCI has more shares outstanding
Compared to 1 year ago, NCI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.15 indicates that NCI is not in any danger for bankruptcy at the moment.
NCI's Altman-Z score of 5.15 is fine compared to the rest of the industry. NCI outperforms 78.46% 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 55.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.15 |
ROIC/WACC2.39
WACC9.95%
2.3 Liquidity
A Current Ratio of 3.13 indicates that NCI has no problem at all paying its short term obligations.
NCI's Current ratio of 3.13 is fine compared to the rest of the industry. NCI outperforms 76.92% of its industry peers.
NCI has a Quick Ratio of 3.13. This indicates that NCI is financially healthy and has no problem in meeting its short term obligations.
NCI has a better Quick ratio (3.13) than 78.46% of its industry peers.
| 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.
Measured over the past years, NCI shows a very strong growth in Earnings Per Share. The EPS has been growing by 68.04% on average per year.
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.
NCI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.35% yearly.
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.
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
A Price/Earnings ratio of 9.00 indicates a reasonable valuation of NCI.
NCI's Price/Earnings ratio is rather cheap when compared to the industry. NCI is cheaper than 93.85% of the companies in the same industry.
NCI is valuated cheaply when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.42, the valuation of NCI can be described as very cheap.
92.31% of the companies in the same industry are more expensive than NCI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.01. NCI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 4.42 |
4.2 Price Multiples
89.23% of the companies in the same industry are more expensive than NCI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.85 |
4.3 Compensation for Growth
NCI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NCI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NCI's earnings are expected to grow with 22.46% in the coming years.
PEG (NY)1.07
PEG (5Y)N/A
EPS Next 2Y22.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for NCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX-V:NCI (12/22/2025, 7:00:00 PM)
1.26
-0.01 (-0.79%)
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 Cap59.65M
Revenue(TTM)76.65M
Net Income(TTM)7.55M
Analysts83.64
Price Target4.05 (221.43%)
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)-4.8%
PT rev (3m)-4.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.29%
EPS NY rev (1m)-6.25%
EPS NY rev (3m)-16.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9 | ||
| Fwd PE | 4.42 | ||
| P/S | 0.78 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.21 | ||
| P/tB | 2.55 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)0.14
EY11.11%
EPS(NY)0.28
Fwd EY22.62%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)-0.1
OCFYN/A
SpS1.62
BVpS0.57
TBVpS0.5
PEG (NY)1.07
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 | 5.15 |
F-Score5
WACC9.95%
ROIC/WACC2.39
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 Year51.09%
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.
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 9 and the Price/Book (PB) ratio is 2.21.
Can you provide the financial health for NCI stock?
The financial health rating of NTG CLARITY NETWORKS INC (NCI.CA) is 6 / 10.