NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:NCI - CA62940V2030 - Common Stock
1.39 CAD
-0.03 (-2.11%)
We assign a fundamental rating of 6 out of 10 to NCI. NCI was compared to 64 industry peers in the Software industry. NCI has an average financial health and profitability rating. 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.
NCI had positive earnings in 4 of the past 5 years.
NCI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.08%, NCI belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
NCI has a better Return On Equity (28.01%) than 95.31% of its industry peers.
The Return On Invested Capital of NCI (23.79%) is better than 96.88% 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 has a better Profit Margin (9.85%) than 84.38% of its industry peers.
NCI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 13.86%, NCI is doing good in the industry, outperforming 79.69% of the companies in the same industry.
NCI's Operating Margin has declined in the last couple of years.
The Gross Margin of NCI (35.76%) is worse than 60.94% 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
NCI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
NCI has an Altman-Z score of 5.36. This indicates that NCI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.36, NCI is in the better half of the industry, outperforming 78.13% 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.
NCI has a Debt to Equity ratio of 0.19. This is comparable to the rest of the industry: NCI outperforms 53.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.36 |
ROIC/WACC2.42
WACC9.85%
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.
The Current ratio of NCI (3.13) is better than 75.00% of its industry peers.
NCI has a Quick Ratio of 3.13. This indicates that NCI is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.13, NCI is doing good in the industry, outperforming 76.56% of the companies in the same industry.
| 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.
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 62.61%.
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
NCI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.46% yearly.
The Revenue is expected to grow by 31.35% on average over the next years. This is a very strong growth
EPS Next Y8.4%
EPS Next 2Y22.46%
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
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
NCI is valuated reasonably with a Price/Earnings ratio of 9.93.
Based on the Price/Earnings ratio, NCI is valued cheaper than 90.63% of the companies in the same industry.
When comparing the Price/Earnings ratio of NCI to the average of the S&P500 Index (26.59), we can say NCI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.88, the valuation of NCI can be described as very cheap.
Based on the Price/Forward Earnings ratio, NCI is valued cheaply inside the industry as 92.19% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NCI to the average of the S&P500 Index (23.80), we can say NCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 4.88 |
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 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.36 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of NCI may justify a higher PE ratio.
A more expensive valuation may be justified as NCI's earnings are expected to grow with 22.46% in the coming years.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y22.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for NCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:NCI (12/10/2025, 7:00:00 PM)
1.39
-0.03 (-2.11%)
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 Cap65.80M
Revenue(TTM)76.65M
Net Income(TTM)7.55M
Analysts83.64
Price Target4.05 (191.37%)
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)-14.29%
EPS NY rev (1m)-6.25%
EPS NY rev (3m)-16.67%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 4.88 | ||
| P/S | 0.86 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.44 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 5.36 |
EPS(TTM)0.14
EY10.07%
EPS(NY)0.28
Fwd EY20.5%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)-0.1
OCFYN/A
SpS1.62
BVpS0.57
TBVpS0.5
PEG (NY)1.18
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 | 5.36 |
F-Score5
WACC9.85%
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 Y8.4%
EPS Next 2Y22.46%
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 Year46.65%
Revenue Next 2Y31.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y53.89%
EBIT growth 3Y62.24%
EBIT growth 5YN/A
EBIT Next Year51.09%
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 6 / 10 to NCI.CA.
Can you provide the valuation status for NTG CLARITY NETWORKS INC?
ChartMill assigns a valuation rating of 7 / 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 9.93 and the Price/Book (PB) ratio is 2.44.
Can you provide the financial health for NCI stock?
The financial health rating of NTG CLARITY NETWORKS INC (NCI.CA) is 6 / 10.