NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:NCI - CA62940V2030 - Common Stock
1.47 CAD
+0.04 (+2.8%)
Overall NCI gets a fundamental rating of 7 out of 10. We evaluated NCI against 63 industry peers in the Software industry. NCI has only an average score on both its financial health and profitability. An interesting combination arises when we look at growth and value: NCI is growing strongly while it also seems undervalued. This makes NCI very considerable for value and growth investing!
1. Profitability
1.1 Basic Checks
NCI had positive earnings in the past year.
In the past year NCI has reported a negative cash flow from operations.
Of the past 5 years NCI 4 years were profitable.
Each year in the past 5 years NCI had a positive operating cash flow.
1.2 Ratios
NCI's Return On Assets of 17.08% is amongst the best of the industry. NCI outperforms 95.24% of its industry peers.
NCI's Return On Equity of 28.01% is amongst the best of the industry. NCI outperforms 95.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.79%, NCI belongs to the top of the industry, outperforming 96.83% of the companies in the same industry.
| 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
The Profit Margin of NCI (9.85%) is better than 84.13% of its industry peers.
NCI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.86%, NCI is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
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 61.90% 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.
The number of shares outstanding for NCI has been increased compared to 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
An Altman-Z score of 5.50 indicates that NCI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.50, NCI is doing good in the industry, outperforming 74.60% of the companies in the same industry.
NCI has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NCI (0.19) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.5 |
ROIC/WACC2.42
WACC9.82%
2.3 Liquidity
A Current Ratio of 3.13 indicates that NCI has no problem at all paying its short term obligations.
NCI's Current ratio of 3.13 is fine compared to the rest of the industry. NCI outperforms 74.60% of its industry peers.
A Quick Ratio of 3.13 indicates that NCI has no problem at all paying its short term obligations.
NCI has a better Quick ratio (3.13) than 76.19% 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.
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 26.09% on average over the next years. This is a very strong growth
NCI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 32.26% yearly.
EPS Next Y15.63%
EPS Next 2Y26.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year45.56%
Revenue Next 2Y32.26%
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
NCI is valuated reasonably with a Price/Earnings ratio of 10.50.
Based on the Price/Earnings ratio, NCI is valued cheaply inside the industry as 92.06% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NCI to the average of the S&P500 Index (26.31), we can say NCI is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.87, the valuation of NCI can be described as very cheap.
90.48% 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 36.56, NCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 4.87 |
4.2 Price Multiples
NCI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NCI is cheaper than 87.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
NCI's 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 26.09% in the coming years.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y26.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for NCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:NCI (11/28/2025, 7:00:00 PM)
1.47
+0.04 (+2.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners0.13%
Inst Owner ChangeN/A
Ins Owners24.6%
Ins Owner ChangeN/A
Market Cap69.59M
Revenue(TTM)76.65M
Net Income(TTM)7.55M
Analysts83.64
Price Target4.05 (175.51%)
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)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)-4.8%
PT rev (3m)-4.8%
EPS NQ rev (1m)-14.29%
EPS NQ rev (3m)-20%
EPS NY rev (1m)1.59%
EPS NY rev (3m)-11.11%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 4.87 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.58 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 5.67 |
EPS(TTM)0.14
EY9.52%
EPS(NY)0.3
Fwd EY20.55%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)-0.1
OCFYN/A
SpS1.62
BVpS0.57
TBVpS0.5
PEG (NY)0.67
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 | 5.5 |
F-Score5
WACC9.82%
ROIC/WACC2.42
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 Y15.63%
EPS Next 2Y26.09%
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 Year45.56%
Revenue Next 2Y32.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y53.89%
EBIT growth 3Y62.24%
EBIT growth 5YN/A
EBIT Next Year59.64%
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.
Can you provide the valuation status for NTG CLARITY NETWORKS INC?
ChartMill assigns a valuation rating of 8 / 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 6 / 10.
Can you provide the PE and PB ratios for NCI stock?
The Price/Earnings (PE) ratio for NTG CLARITY NETWORKS INC (NCI.CA) is 10.5 and the Price/Book (PB) ratio is 2.58.
Can you provide the financial health for NCI stock?
The financial health rating of NTG CLARITY NETWORKS INC (NCI.CA) is 6 / 10.