NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
TSX-V:NCI - TSX Venture Exchange - CA62940V2030 - Common Stock - Currency: CAD
Taking everything into account, NCI scores 6 out of 10 in our fundamental rating. NCI was compared to 66 industry peers in the Software industry. NCI has only an average score on both its financial health and profitability. 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
In the past year NCI was profitable.
NCI had a positive operating cash flow in the past year.
In multiple years NCI reported negative net income over the last 5 years.
NCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 20.66%, NCI belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
With an excellent Return On Equity value of 61.28%, NCI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 30.90%, NCI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.66% | ||
| ROE | 61.28% | ||
| ROIC | 30.9% |
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's Profit Margin of 12.00% is amongst the best of the industry. NCI outperforms 82.09% of its industry peers.
With an excellent Operating Margin value of 14.64%, NCI belongs to the best of the industry, outperforming 85.07% of the companies in the same industry.
NCI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 34.08%, NCI is not doing good in the industry: 62.69% of the companies in the same industry are doing better.
NCI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.64% | ||
| PM (TTM) | 12% | ||
| GM | 34.08% |
OM growth 3YN/A
OM growth 5Y36.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.6%
GM growth 5Y-5.38%
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.
Compared to 5 years ago, NCI has more shares outstanding
2.2 Solvency
NCI has an Altman-Z score of 5.22. This indicates that NCI is financially healthy and has little risk of bankruptcy at the moment.
NCI's Altman-Z score of 5.22 is fine compared to the rest of the industry. NCI outperforms 79.10% of its industry peers.
NCI has a debt to FCF ratio of 26.00. This is a negative value and a sign of low solvency as NCI would need 26.00 years to pay back of all of its debts.
The Debt to FCF ratio of NCI (26.00) is comparable to the rest of the industry.
NCI has a Debt/Equity ratio of 0.74. This is a neutral value indicating NCI is somewhat dependend on debt financing.
NCI has a Debt to Equity ratio (0.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 26 | ||
| Altman-Z | 5.22 |
ROIC/WACC2.62
WACC11.8%
2.3 Liquidity
A Current Ratio of 1.82 indicates that NCI should not have too much problems paying its short term obligations.
NCI's Current ratio of 1.82 is fine compared to the rest of the industry. NCI outperforms 68.66% of its industry peers.
NCI has a Quick Ratio of 1.82. This is a normal value and indicates that NCI is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NCI (1.82) is better than 68.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
NCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.77%, which is quite impressive.
The Revenue has grown by 86.71% in the past year. This is a very strong growth!
Measured over the past years, NCI shows a quite strong growth in Revenue. The Revenue has been growing by 18.82% on average per year.
EPS 1Y (TTM)67.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%146.15%
Revenue 1Y (TTM)86.71%
Revenue growth 3Y51.93%
Revenue growth 5Y18.82%
Sales Q2Q%109.49%
3.2 Future
The Earnings Per Share is expected to grow by 102.46% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 49.58% on average over the next years. This is a very strong growth
EPS Next Y391.53%
EPS Next 2Y183.33%
EPS Next 3Y102.46%
EPS Next 5YN/A
Revenue Next Year105.79%
Revenue Next 2Y66.58%
Revenue Next 3Y49.58%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.77, which indicates a correct valuation of NCI.
Based on the Price/Earnings ratio, NCI is valued cheaply inside the industry as 86.57% of the companies are valued more expensively.
NCI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 6.12, which indicates a rather cheap valuation of NCI.
Based on the Price/Forward Earnings ratio, NCI is valued cheaper than 95.52% of the companies in the same industry.
NCI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.77 | ||
| Fwd PE | 6.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NCI is valued a bit cheaper than the industry average as 73.13% of the companies are valued more expensively.
NCI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 324 | ||
| EV/EBITDA | 11.44 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 102.46% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y183.33%
EPS Next 3Y102.46%
5. Dividend
5.1 Amount
No dividends for NCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:NCI (3/7/2025, 7:00:00 PM)
2.05
+0.05 (+2.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners27.37%
Ins Owner ChangeN/A
Market Cap86.74M
Analysts0
Price Target4.19 (104.39%)
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.77 | ||
| Fwd PE | 6.12 | ||
| P/S | 1.84 | ||
| P/FCF | 324 | ||
| P/OCF | 51.43 | ||
| P/B | 9.4 | ||
| P/tB | 16.78 | ||
| EV/EBITDA | 11.44 |
EPS(TTM)0.13
EY6.34%
EPS(NY)0.33
Fwd EY16.33%
FCF(TTM)0.01
FCFY0.31%
OCF(TTM)0.04
OCFY1.94%
SpS1.11
BVpS0.22
TBVpS0.12
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.66% | ||
| ROE | 61.28% | ||
| ROCE | 44.79% | ||
| ROIC | 30.9% | ||
| ROICexc | 46.31% | ||
| ROICexgc | 74.5% | ||
| OM | 14.64% | ||
| PM (TTM) | 12% | ||
| GM | 34.08% | ||
| FCFM | 0.57% |
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5Y67.57%
OM growth 3YN/A
OM growth 5Y36.18%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.6%
GM growth 5Y-5.38%
F-Score4
Asset Turnover1.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 26 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 187.17% | ||
| Cap/Sales | 3.01% | ||
| Interest Coverage | 18.54 | ||
| Cash Conversion | 22.02% | ||
| Profit Quality | 4.73% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | 5.22 |
F-Score4
WACC11.8%
ROIC/WACC2.62
Cap/Depr(3y)454.4%
Cap/Depr(5y)701.55%
Cap/Sales(3y)9.88%
Cap/Sales(5y)8.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)67.77%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%146.15%
EPS Next Y391.53%
EPS Next 2Y183.33%
EPS Next 3Y102.46%
EPS Next 5YN/A
Revenue 1Y (TTM)86.71%
Revenue growth 3Y51.93%
Revenue growth 5Y18.82%
Sales Q2Q%109.49%
Revenue Next Year105.79%
Revenue Next 2Y66.58%
Revenue Next 3Y49.58%
Revenue Next 5YN/A
EBIT growth 1Y95.47%
EBIT growth 3YN/A
EBIT growth 5Y61.82%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-88.08%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-57.3%
OCF growth 3Y0.53%
OCF growth 5Y21.75%