NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada • TSX Venture Exchange • TSX-V:NCI • CA62940V2030
1.15 CAD
-0.05 (-4.17%)
Last: Jan 30, 2026, 07:00 PM
Overall NCI gets a fundamental rating of 6 out of 10. We evaluated NCI against 68 industry peers in the Software industry. NCI has only an average score on both its financial health and profitability. NCI is growing strongly while it is still valued neutral. This is a good combination! This makes NCI very considerable for 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
- The Return On Assets of NCI (17.08%) is better than 94.12% of its industry peers.
- The Return On Equity of NCI (28.01%) is better than 92.65% of its industry peers.
- NCI's Return On Invested Capital of 23.79% is amongst the best of the industry. NCI outperforms 95.59% 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 79.41% of its industry peers.
- NCI's Profit Margin has improved in the last couple of years.
- The Operating Margin of NCI (13.86%) is better than 79.41% of its industry peers.
- 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 60.29% 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.
- Compared to 1 year ago, NCI has more shares outstanding
- NCI has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for NCI has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.05 indicates that NCI is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.05, NCI is doing good in the industry, outperforming 76.47% 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 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.05 |
ROIC/WACC2.36
WACC10.1%
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.
- NCI's Current ratio of 3.13 is fine compared to the rest of the industry. NCI outperforms 76.47% 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.
- The Quick ratio of NCI (3.13) is better than 77.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 15.26% over the past year.
- 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
- NCI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.23% yearly.
- Based on estimates for the next years, NCI will show a very strong growth in Revenue. The Revenue will grow by 31.35% on average per year.
EPS Next Y-34.96%
EPS Next 2Y-1.23%
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- With a Price/Earnings ratio of 8.21, the valuation of NCI can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of NCI indicates a rather cheap valuation: NCI is cheaper than 88.24% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of NCI to the average of the S&P500 Index (28.30), we can say NCI is valued rather cheaply.
- NCI is valuated cheaply with a Price/Forward Earnings ratio of 6.20.
- Based on the Price/Forward Earnings ratio, NCI is valued cheaper than 88.24% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, NCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NCI is valued cheaper than 86.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.62 |
4.3 Compensation for Growth
- NCI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- NCI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
What is the valuation status for NCI stock?
ChartMill assigns a valuation rating of 6 / 10 to NTG CLARITY NETWORKS INC (NCI.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for NTG CLARITY NETWORKS INC?
NTG CLARITY NETWORKS INC (NCI.CA) has a profitability rating of 6 / 10.
What is the expected EPS growth for NTG CLARITY NETWORKS INC (NCI.CA) stock?
The Earnings per Share (EPS) of NTG CLARITY NETWORKS INC (NCI.CA) is expected to decline by -34.96% in the next year.