NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:NCI - CA62940V2030 - Common Stock
1.32 CAD
+0.02 (+1.54%)
We assign a fundamental rating of 7 out of 10 to NCI. NCI was compared to 64 industry peers in the Software industry. NCI has an excellent profitability rating, but there are some minor concerns on its financial health. NCI has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! With these ratings, NCI could be worth investigating further 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
Looking at the Return On Assets, with a value of 17.08%, NCI belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
NCI's Return On Equity of 28.01% is amongst the best of the industry. NCI outperforms 95.31% of its industry peers.
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
With an excellent Profit Margin value of 9.85%, NCI belongs to the best of the industry, outperforming 84.38% 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 13.86%. This is amongst the best in the industry. NCI outperforms 82.81% of its industry peers.
In the last couple of years the Operating Margin of NCI has declined.
NCI has a Gross Margin of 35.76%. 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 | 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.
The number of shares outstanding for NCI has been increased compared to 5 years ago.
The debt/assets ratio for NCI has been reduced compared to a year ago.
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.
The Altman-Z score of NCI (5.22) is better than 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 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.22 |
ROIC/WACC2.41
WACC9.88%
2.3 Liquidity
A Current Ratio of 3.13 indicates that NCI has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.13, NCI is doing good in the industry, outperforming 76.56% of the companies in the same industry.
A Quick Ratio of 3.13 indicates that NCI has no problem at all paying its short term obligations.
NCI has a Quick ratio of 3.13. This is in the better half of the industry: NCI outperforms 78.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
NCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.26%, which is quite good.
The Earnings Per Share has been growing by 68.04% on average over the past years. This is a very strong growth
The Revenue has grown by 62.61% in the past year. This is a very strong growth!
NCI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.43% yearly.
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
The Earnings Per Share is expected to grow by 22.46% on average over the next years. This is a very strong growth
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 9.43, the valuation of NCI can be described as reasonable.
Based on the Price/Earnings ratio, NCI is valued cheaper than 93.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. NCI is valued rather cheaply when compared to this.
NCI is valuated cheaply with a Price/Forward Earnings ratio of 4.63.
93.75% of the companies in the same industry are more expensive than NCI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, NCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 4.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NCI is valued cheaper than 89.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.01 |
4.3 Compensation for Growth
The 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.
NCI's earnings are expected to grow with 22.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.12
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 (1/9/2026, 7:00:00 PM)
1.32
+0.02 (+1.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners0.35%
Inst Owner ChangeN/A
Ins Owners24.52%
Ins Owner ChangeN/A
Market Cap62.49M
Revenue(TTM)76.65M
Net Income(TTM)7.55M
Analysts83.64
Price Target4.05 (206.82%)
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)0%
EPS NY rev (3m)-4.76%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 4.63 | ||
| P/S | 0.82 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.32 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 5.01 |
EPS(TTM)0.14
EY10.61%
EPS(NY)0.28
Fwd EY21.59%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)-0.1
OCFYN/A
SpS1.62
BVpS0.57
TBVpS0.5
PEG (NY)1.12
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 | 5.22 |
F-Score5
WACC9.88%
ROIC/WACC2.41
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.