NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada - TSX-V:NCI - CA62940V2030 - Common Stock
1.14 CAD
-0.03 (-2.56%)
NCI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 63 industry peers in the Software industry. While NCI has a great profitability rating, there are some minor concerns on its financial health. NCI is growing strongly while it also seems undervalued. This is an interesting combination These ratings could make NCI a good candidate 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.
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
NCI has a Return On Assets of 23.92%. This is amongst the best in the industry. NCI outperforms 95.24% of its industry peers.
With an excellent Return On Equity value of 48.54%, NCI belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
NCI has a Return On Invested Capital of 37.82%. This is amongst the best in the industry. NCI outperforms 98.41% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 11.05%, NCI belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
NCI's Profit Margin has improved in the last couple of years.
NCI has a better Operating Margin (16.29%) than 84.13% of its industry peers.
NCI's Operating Margin has declined in the last couple of years.
NCI's Gross Margin of 36.56% is on the low side compared to the rest of the industry. NCI is outperformed by 61.90% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NCI is creating value.
Compared to 1 year ago, NCI has more shares outstanding
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 5.59 indicates that NCI is not in any danger for bankruptcy at the moment.
The Altman-Z score of NCI (5.59) is better than 80.95% of its industry peers.
NCI has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
NCI has a Debt to Equity ratio of 0.36. This is comparable to the rest of the industry: NCI outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.59 |
ROIC/WACC3.76
WACC10.06%
2.3 Liquidity
A Current Ratio of 2.47 indicates that NCI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.47, NCI is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
A Quick Ratio of 2.47 indicates that NCI has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.47, NCI is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| 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.
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 78.50% in the past year. This is a very strong growth!
The Revenue has been growing by 45.43% on average over the past years. This is a very strong growth!
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
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
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.
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 7.12, the valuation of NCI can be described as very cheap.
93.65% 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 25.51, NCI is valued rather cheaply.
A Price/Forward Earnings ratio of 3.77 indicates a rather cheap valuation of NCI.
Based on the Price/Forward Earnings ratio, NCI is valued cheaply inside the industry as 93.65% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.98. NCI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.12 | ||
| Fwd PE | 3.77 |
4.2 Price Multiples
NCI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NCI is cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.54 |
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.
The decent profitability rating of NCI 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)0.46
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 (11/18/2025, 7:00:00 PM)
1.14
-0.03 (-2.56%)
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 Cap53.97M
Revenue(TTM)70.46M
Net Income(TTM)7.78M
Analysts83.64
Price Target4.25 (272.81%)
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 | 7.12 | ||
| Fwd PE | 3.77 | ||
| P/S | 0.77 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.37 | ||
| P/tB | 4.36 | ||
| EV/EBITDA | 4.54 |
EPS(TTM)0.16
EY14.04%
EPS(NY)0.3
Fwd EY26.5%
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)-0.02
OCFYN/A
SpS1.49
BVpS0.34
TBVpS0.26
PEG (NY)0.46
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 | 5.59 |
F-Score6
WACC10.06%
ROIC/WACC3.76
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 7.12 and the Price/Book (PB) ratio is 3.37.
Can you provide the financial health for NCI stock?
The financial health rating of NTG CLARITY NETWORKS INC (NCI.CA) is 6 / 10.