NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada - TSX-V:NCI - CA62940V2030 - Common Stock
1.72 CAD
+0.05 (+2.99%)
Taking everything into account, NCI scores 7 out of 10 in our fundamental rating. NCI was compared to 64 industry peers in the Software industry. NCI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NCI has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make NCI a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year NCI was profitable.
NCI had a positive operating cash flow in the past year.
Of the past 5 years NCI 4 years were profitable.
In the past 5 years NCI always reported a positive cash flow from operatings.
1.2 Ratios
NCI's Return On Assets of 31.71% is amongst the best of the industry. NCI outperforms 95.31% of its industry peers.
NCI's Return On Equity of 65.78% is amongst the best of the industry. NCI outperforms 96.88% of its industry peers.
With an excellent Return On Invested Capital value of 40.02%, NCI belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.71% | ||
| ROE | 65.78% | ||
| ROIC | 40.02% |
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 Profit Margin of 15.27%. This is amongst the best in the industry. NCI outperforms 89.06% of its industry peers.
In the last couple of years the Profit Margin of NCI has grown nicely.
With an excellent Operating Margin value of 18.20%, NCI belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of NCI has declined.
Looking at the Gross Margin, with a value of 35.89%, NCI is in line with its industry, outperforming 40.63% of the companies in the same industry.
In the last couple of years the Gross Margin of NCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.2% | ||
| PM (TTM) | 15.27% | ||
| GM | 35.89% |
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 6.54 indicates that NCI is not in any danger for bankruptcy at the moment.
NCI has a Altman-Z score of 6.54. This is in the better half of the industry: NCI outperforms 76.56% of its industry peers.
NCI has a debt to FCF ratio of 6.31. This is a slightly negative value and a sign of low solvency as NCI would need 6.31 years to pay back of all of its debts.
The Debt to FCF ratio of NCI (6.31) is better than 64.06% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that NCI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.41, NCI is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.31 | ||
| Altman-Z | 6.54 |
ROIC/WACC3.87
WACC10.35%
2.3 Liquidity
NCI has a Current Ratio of 2.47. This indicates that NCI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of NCI (2.47) is better than 75.00% of its industry peers.
NCI has a Quick Ratio of 2.47. This indicates that NCI is financially healthy and has no problem in meeting its short term obligations.
NCI has a Quick ratio of 2.47. This is in the better half of the industry: NCI outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
NCI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 195.35%, which is quite impressive.
NCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.04% yearly.
NCI shows a strong growth in Revenue. In the last year, the Revenue has grown by 92.08%.
NCI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.43% yearly.
EPS 1Y (TTM)195.35%
EPS 3Y68.04%
EPS 5YN/A
EPS Q2Q%-5.6%
Revenue 1Y (TTM)92.08%
Revenue growth 3Y67.72%
Revenue growth 5Y45.43%
Sales Q2Q%67.57%
3.2 Future
The Earnings Per Share is expected to grow by 28.93% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 32.26% on average over the next years. This is a very strong growth
EPS Next Y30.08%
EPS Next 2Y28.93%
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
NCI is valuated reasonably with a Price/Earnings ratio of 8.19.
93.75% of the companies in the same industry are more expensive than NCI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.20, NCI is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.45, the valuation of NCI can be described as very cheap.
Based on the Price/Forward Earnings ratio, NCI is valued cheaper than 95.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NCI to the average of the S&P500 Index (22.70), we can say NCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 5.45 |
4.2 Price Multiples
89.06% of the companies in the same industry are more expensive than NCI, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as NCI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.4 | ||
| EV/EBITDA | 6.3 |
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 28.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y28.93%
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 (9/17/2025, 7:00:00 PM)
1.72
+0.05 (+2.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners27.4%
Ins Owner ChangeN/A
Market Cap81.36M
Analysts83.64
Price Target4.25 (147.09%)
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)1
Avg EPS beat(2)30.86%
Min EPS beat(2)-32.46%
Max EPS beat(2)94.17%
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)2
Avg Revenue beat(2)4.75%
Min Revenue beat(2)1.27%
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)0.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-6.8%
EPS NY rev (3m)-6.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)5.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 5.45 | ||
| P/S | 1.27 | ||
| P/FCF | 79.4 | ||
| P/OCF | 37.46 | ||
| P/B | 5.47 | ||
| P/tB | 7.34 | ||
| EV/EBITDA | 6.3 |
EPS(TTM)0.21
EY12.21%
EPS(NY)0.32
Fwd EY18.36%
FCF(TTM)0.02
FCFY1.26%
OCF(TTM)0.05
OCFY2.67%
SpS1.35
BVpS0.31
TBVpS0.23
PEG (NY)0.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.71% | ||
| ROE | 65.78% | ||
| ROCE | 55.83% | ||
| ROIC | 40.02% | ||
| ROICexc | 51.52% | ||
| ROICexgc | 67.17% | ||
| OM | 18.2% | ||
| PM (TTM) | 15.27% | ||
| GM | 35.89% | ||
| FCFM | 1.6% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover2.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.31 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 100.75% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 27.7 | ||
| Cash Conversion | 16.97% | ||
| Profit Quality | 10.47% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 | ||
| Altman-Z | 6.54 |
F-Score6
WACC10.35%
ROIC/WACC3.87
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)195.35%
EPS 3Y68.04%
EPS 5YN/A
EPS Q2Q%-5.6%
EPS Next Y30.08%
EPS Next 2Y28.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)92.08%
Revenue growth 3Y67.72%
Revenue growth 5Y45.43%
Sales Q2Q%67.57%
Revenue Next Year45.56%
Revenue Next 2Y32.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y250.38%
EBIT growth 3Y62.24%
EBIT growth 5YN/A
EBIT Next Year76.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y71.14%
FCF growth 3Y85.08%
FCF growth 5YN/A
OCF growth 1Y4.9%
OCF growth 3Y12.61%
OCF growth 5Y234.98%