NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada - TSX-V:NCI - CA62940V2030 - Common Stock
1.56 CAD
-0.08 (-4.88%)
Overall NCI gets a fundamental rating of 7 out of 10. We evaluated NCI against 63 industry peers in the Software industry. While NCI has a great profitability rating, there are some minor concerns on its financial health. 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
In the past year NCI was profitable.
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 has a Return On Assets of 23.92%. This is amongst the best in the industry. NCI outperforms 96.83% of its industry peers.
The Return On Equity of NCI (48.54%) is better than 95.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 37.82%, NCI belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.92% | ||
| ROE | 48.54% | ||
| ROIC | 37.82% |
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 11.05% is amongst the best of the industry. NCI outperforms 84.13% of its industry peers.
NCI's Profit Margin has improved in the last couple of years.
NCI's Operating Margin of 16.29% is amongst the best of the industry. NCI outperforms 84.13% of its industry peers.
NCI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 36.56%, NCI is doing worse than 60.32% of the companies in the same industry.
NCI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.29% | ||
| PM (TTM) | 11.05% | ||
| GM | 36.56% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NCI is creating value.
The number of shares outstanding for NCI has been increased compared to 1 year ago.
NCI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NCI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.32 indicates that NCI is not in any danger for bankruptcy at the moment.
NCI has a Altman-Z score of 6.32. This is in the better half of the industry: NCI outperforms 76.19% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that NCI is not too dependend on debt financing.
The Debt to Equity ratio of NCI (0.36) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.32 |
ROIC/WACC3.78
WACC10.01%
2.3 Liquidity
A Current Ratio of 2.47 indicates that NCI has no problem at all paying its short term obligations.
NCI's Current ratio of 2.47 is fine compared to the rest of the industry. NCI outperforms 76.19% of its industry peers.
A Quick Ratio of 2.47 indicates that NCI has no problem at all paying its short term obligations.
NCI's Quick ratio of 2.47 is fine compared to the rest of the industry. NCI outperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.19% 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 78.50%.
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)51.19%
EPS 3Y68.04%
EPS 5YN/A
EPS Q2Q%-83.75%
Revenue 1Y (TTM)78.5%
Revenue growth 3Y67.72%
Revenue growth 5Y45.43%
Sales Q2Q%51.15%
3.2 Future
Based on estimates for the next years, NCI will show a very strong growth in Earnings Per Share. The EPS will grow by 26.09% on average per year.
Based on estimates for the next years, NCI will show a very strong growth in Revenue. The Revenue will grow by 32.26% on average per year.
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.
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
The Price/Earnings ratio is 9.75, which indicates a very decent valuation of NCI.
93.65% 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 26.06. NCI is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 5.16 indicates a rather cheap valuation of NCI.
Based on the Price/Forward Earnings ratio, NCI is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NCI to the average of the S&P500 Index (32.73), we can say NCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 5.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NCI indicates a rather cheap valuation: NCI is cheaper than 87.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.09 |
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.
NCI has a very decent profitability rating, which may justify a higher PE ratio.
NCI's earnings are expected to grow with 26.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y26.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
NCI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:NCI (11/7/2025, 7:00:00 PM)
1.56
-0.08 (-4.88%)
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 Cap73.85M
Revenue(TTM)70.46M
Net Income(TTM)7.78M
Analysts83.64
Price Target4.25 (172.44%)
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)-58.88%
Min EPS beat(2)-85.29%
Max EPS beat(2)-32.46%
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)1
Avg Revenue beat(2)1.27%
Min Revenue beat(2)-5.69%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.27%
EPS NY rev (1m)1.59%
EPS NY rev (3m)-17.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 5.16 | ||
| P/S | 1.05 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 4.61 | ||
| P/tB | 5.97 | ||
| EV/EBITDA | 6.09 |
EPS(TTM)0.16
EY10.26%
EPS(NY)0.3
Fwd EY19.37%
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)-0.02
OCFYN/A
SpS1.49
BVpS0.34
TBVpS0.26
PEG (NY)0.62
PEG (5Y)N/A
Graham Number1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.92% | ||
| ROE | 48.54% | ||
| ROCE | 52.53% | ||
| ROIC | 37.82% | ||
| ROICexc | 42.18% | ||
| ROICexgc | 51.88% | ||
| OM | 16.29% | ||
| PM (TTM) | 11.05% | ||
| GM | 36.56% | ||
| 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-Score6
Asset Turnover2.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 80.36% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 28.9 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 | ||
| Altman-Z | 6.32 |
F-Score6
WACC10.01%
ROIC/WACC3.78
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)51.19%
EPS 3Y68.04%
EPS 5YN/A
EPS Q2Q%-83.75%
EPS Next Y15.63%
EPS Next 2Y26.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)78.5%
Revenue growth 3Y67.72%
Revenue growth 5Y45.43%
Sales Q2Q%51.15%
Revenue Next Year45.56%
Revenue Next 2Y32.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y124.63%
EBIT growth 3Y62.24%
EBIT growth 5YN/A
EBIT Next Year59.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-354.73%
FCF growth 3Y85.08%
FCF growth 5YN/A
OCF growth 1Y-129.64%
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 7 / 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 9.75 and the Price/Book (PB) ratio is 4.61.
Can you provide the financial health for NCI stock?
The financial health rating of NTG CLARITY NETWORKS INC (NCI.CA) is 6 / 10.