NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada • TSX Venture Exchange • TSX-V:NCI • CA62940V2030
1.15 CAD
-0.05 (-4.17%)
Last: Jan 30, 2026, 07:00 PM
NCI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 68 industry peers in the Software industry. Both the profitability and the financial health of NCI get a neutral evaluation. Nothing too spectacular is happening here. 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
- NCI had positive earnings in the past year.
- NCI had a negative operating cash flow in the past year.
- 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
- The Return On Assets of NCI (17.08%) is better 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's Profit Margin of 9.85% is fine compared to the rest of the industry. NCI outperforms 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.
- NCI's Operating Margin has declined in the last couple of years.
- The Gross Margin of NCI (35.76%) is worse than 60.29% of its industry peers.
- In the last couple of years the Gross Margin of NCI has grown nicely.
| 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.
- NCI has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for NCI has been increased compared to 5 years ago.
- NCI has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.97 indicates that NCI is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.97, NCI is doing good in the industry, outperforming 77.94% of the companies in the same industry.
- A Debt/Equity ratio of 0.19 indicates that NCI is not too dependend on debt financing.
- NCI has a Debt to Equity ratio (0.19) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.97 |
ROIC/WACC2.36
WACC10.1%
2.3 Liquidity
- NCI has a Current Ratio of 3.13. This indicates that NCI is financially healthy and has no problem in meeting its short term obligations.
- NCI has a Current ratio of 3.13. This is in the better half of the industry: NCI outperforms 76.47% of its industry peers.
- A Quick Ratio of 3.13 indicates that NCI has no problem at all paying its short term obligations.
- The Quick ratio of NCI (3.13) is better than 77.94% 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.
- 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.
- NCI shows a strong growth in Revenue. In the last year, 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
- The Earnings Per Share is expected to decrease by -1.23% on average over the next years.
- Based on estimates for the next years, NCI will show a very strong growth in Revenue. The Revenue will grow by 31.35% on average per year.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
- With a Price/Earnings ratio of 8.21, the valuation of NCI can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of NCI indicates a rather cheap valuation: NCI is cheaper than 88.24% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of NCI to the average of the S&P500 Index (28.32), we can say NCI is valued rather cheaply.
- NCI is valuated cheaply with a Price/Forward Earnings ratio of 6.20.
- NCI's Price/Forward Earnings ratio is rather cheap when compared to the industry. NCI is cheaper than 88.24% 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 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NCI is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.42 |
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.