NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:NCI - CA62940V2030 - Common Stock
1.25 CAD
+0.01 (+0.81%)
We assign a fundamental rating of 6 out of 10 to NCI. NCI was compared to 68 industry peers in the Software industry. NCI has an average financial health and profitability rating. NCI is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make NCI suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year NCI was profitable.
- In the past year NCI has reported a negative cash flow from operations.
- NCI had positive earnings in 4 of the past 5 years.
- In the past 5 years NCI always reported a positive cash flow from operatings.
1.2 Ratios
- NCI has a better Return On Assets (17.08%) than 94.12% of its industry peers.
- The Return On Equity of NCI (28.01%) is better than 92.65% of its industry peers.
- NCI's Return On Invested Capital of 23.79% is amongst the best of the industry. NCI outperforms 95.59% 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 better Profit Margin (9.85%) than 79.41% 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 79.41% of its industry peers.
- In the last couple of years the Operating Margin of NCI has declined.
- NCI's Gross Margin of 35.76% is on the low side compared to the rest of the industry. NCI is outperformed by 60.29% 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.
- Compared to 1 year ago, NCI has more shares outstanding
- 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
- NCI has an Altman-Z score of 5.12. This indicates that NCI is financially healthy and has little risk of bankruptcy at the moment.
- NCI has a better Altman-Z score (5.12) than 76.47% of its industry peers.
- A Debt/Equity ratio of 0.19 indicates that NCI is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.19, NCI perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.12 |
ROIC/WACC2.35
WACC10.14%
2.3 Liquidity
- A Current Ratio of 3.13 indicates that NCI has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 3.13, NCI is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
- 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 Quick ratio of 3.13. This is in the better half of the industry: NCI outperforms 77.94% 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.
- NCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.04% yearly.
- Looking at the last year, NCI shows a very strong growth in Revenue. The Revenue has grown by 62.61%.
- 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
- Based on estimates for the next years, NCI will show a decrease in Earnings Per Share. The EPS will decrease by -1.23% on average per year.
- NCI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 31.35% yearly.
EPS Next Y-34.96%
EPS Next 2Y-1.23%
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- NCI is valuated reasonably with a Price/Earnings ratio of 8.93.
- 88.24% of the companies in the same industry are more expensive than NCI, based on the Price/Earnings ratio.
- NCI is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 6.74, the valuation of NCI can be described as very cheap.
- Based on the Price/Forward Earnings ratio, NCI is valued cheaper than 88.24% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of NCI to the average of the S&P500 Index (25.96), we can say NCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 6.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NCI is valued cheaply inside the industry as 86.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.77 |
4.3 Compensation for Growth
- NCI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for NCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NTG CLARITY NETWORKS INC / NCI.CA FAQ
What is the fundamental rating for NCI stock?
ChartMill assigns a fundamental rating of 6 / 10 to NCI.CA.
What is the valuation status for NCI stock?
ChartMill assigns a valuation rating of 6 / 10 to NTG CLARITY NETWORKS INC (NCI.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for NTG CLARITY NETWORKS INC?
NTG CLARITY NETWORKS INC (NCI.CA) has a profitability rating of 6 / 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 decline by -34.96% in the next year.