NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
TSX-V:NCI - TSX Venture Exchange - CA62940V2030 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to NCI. NCI was compared to 64 industry peers in the Software industry. NCI gets an excellent profitability rating and is at the same time showing great financial health properties. An interesting combination arises when we look at growth and value: NCI is growing strongly while it also seems undervalued. These ratings would make NCI suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year NCI was profitable.
In the past year NCI had a positive cash flow from operations.
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
With an excellent Return On Assets value of 31.71%, NCI belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
With an excellent Return On Equity value of 65.78%, NCI belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
NCI has a better Return On Invested Capital (40.02%) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.71% | ||
| ROE | 65.78% | ||
| ROIC | 40.02% |
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 15.27%, NCI belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
NCI's Profit Margin has improved in the last couple of years.
NCI has a Operating Margin of 18.20%. This is amongst the best in the industry. NCI outperforms 87.50% of its industry peers.
NCI's Operating Margin has declined in the last couple of years.
NCI has a Gross Margin of 35.89%. This is in the lower half of the industry: NCI underperforms 60.94% of its industry peers.
NCI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.2% | ||
| PM (TTM) | 15.27% | ||
| GM | 35.89% |
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.
NCI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NCI has more shares outstanding
NCI has a better debt/assets ratio than last year.
2.2 Solvency
NCI has an Altman-Z score of 6.92. This indicates that NCI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NCI (6.92) is better than 82.81% of its industry peers.
The Debt to FCF ratio of NCI is 6.31, which is on the high side as it means it would take NCI, 6.31 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.31, NCI is doing good in the industry, outperforming 64.06% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that NCI is not too dependend on debt financing.
NCI has a Debt to Equity ratio (0.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.31 | ||
| Altman-Z | 6.92 |
ROIC/WACC4.13
WACC9.68%
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.
NCI has a Current ratio of 2.47. This is in the better half of the industry: NCI outperforms 75.00% of its industry peers.
NCI has a Quick Ratio of 2.47. This indicates that NCI is financially healthy and has no problem in meeting its short term obligations.
NCI's Quick ratio of 2.47 is fine compared to the rest of the industry. NCI outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
NCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 195.35%, which is quite impressive.
The Earnings Per Share has been growing by 68.04% on average over the past years. This is a very strong growth
Looking at the last year, NCI shows a very strong growth in Revenue. The Revenue has grown by 92.08%.
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)195.35%
EPS 3Y68.04%
EPS 5YN/A
EPS Q2Q%-5.6%
Revenue 1Y (TTM)92.08%
Revenue growth 3Y67.72%
Revenue growth 5Y45.43%
Sales Q2Q%67.57%
3.2 Future
NCI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.94% yearly.
The Revenue is expected to grow by 30.02% on average over the next years. This is a very strong growth
EPS Next Y39.57%
EPS Next 2Y27.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year38%
Revenue Next 2Y30.02%
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
A Price/Earnings ratio of 9.76 indicates a reasonable valuation of NCI.
90.63% of the companies in the same industry are more expensive than NCI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. NCI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.59, the valuation of NCI can be described as very cheap.
Based on the Price/Forward Earnings ratio, NCI is valued cheaper than 92.19% of the companies in the same industry.
NCI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 6.59 |
4.2 Price Multiples
NCI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NCI is cheaper than 87.50% of the companies in the same industry.
NCI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 84.81 | ||
| EV/EBITDA | 7.08 |
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.
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 27.94% in the coming years.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y27.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for NCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:NCI (7/11/2025, 7:00:00 PM)
2.05
-0.05 (-2.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners27.4%
Ins Owner ChangeN/A
Market Cap86.90M
Analysts83.64
Price Target4.25 (107.32%)
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)1
Avg EPS beat(2)30.86%
Min EPS beat(2)-32.46%
Max EPS beat(2)94.17%
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)2
Avg Revenue beat(2)4.75%
Min Revenue beat(2)1.27%
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)16.55%
PT rev (3m)13.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-10.43%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 6.59 | ||
| P/S | 1.36 | ||
| P/FCF | 84.81 | ||
| P/OCF | 40.01 | ||
| P/B | 5.84 | ||
| P/tB | 7.84 | ||
| EV/EBITDA | 7.08 |
EPS(TTM)0.21
EY10.24%
EPS(NY)0.31
Fwd EY15.17%
FCF(TTM)0.02
FCFY1.18%
OCF(TTM)0.05
OCFY2.5%
SpS1.51
BVpS0.35
TBVpS0.26
PEG (NY)0.25
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.71% | ||
| ROE | 65.78% | ||
| ROCE | 55.83% | ||
| ROIC | 40.02% | ||
| ROICexc | 51.52% | ||
| ROICexgc | 67.17% | ||
| OM | 18.2% | ||
| PM (TTM) | 15.27% | ||
| GM | 35.89% | ||
| FCFM | 1.6% |
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 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 Turnover2.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.31 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 100.75% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 27.7 | ||
| Cash Conversion | 16.97% | ||
| Profit Quality | 10.47% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 | ||
| Altman-Z | 6.92 |
F-Score6
WACC9.68%
ROIC/WACC4.13
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)195.35%
EPS 3Y68.04%
EPS 5YN/A
EPS Q2Q%-5.6%
EPS Next Y39.57%
EPS Next 2Y27.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)92.08%
Revenue growth 3Y67.72%
Revenue growth 5Y45.43%
Sales Q2Q%67.57%
Revenue Next Year38%
Revenue Next 2Y30.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y250.38%
EBIT growth 3Y62.24%
EBIT growth 5YN/A
EBIT Next Year76.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y71.14%
FCF growth 3Y85.08%
FCF growth 5YN/A
OCF growth 1Y4.9%
OCF growth 3Y12.61%
OCF growth 5Y234.98%