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NOWVERTICAL GROUP INC (NOW.CA) Stock Fundamental Analysis

TSX-V:NOW - TSX Venture Exchange - CA67013H1064 - Common Stock - Currency: CAD

0.375  +0.01 (+1.35%)

Fundamental Rating

2

NOW gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 66 industry peers in the Software industry. NOW has a bad profitability rating. Also its financial health evaluation is rather negative. NOW is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

NOW had negative earnings in the past year.
In the past year NOW had a positive cash flow from operations.
NOW.CA Yearly Net Income VS EBIT VS OCF VS FCFNOW.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2021 2022 2023 0 -2M -4M -6M -8M -10M

1.2 Ratios

NOW has a Return On Assets (-4.39%) which is comparable to the rest of the industry.
NOW's Return On Equity of -220.98% is on the low side compared to the rest of the industry. NOW is outperformed by 65.67% of its industry peers.
The Return On Invested Capital of NOW (11.95%) is better than 85.07% of its industry peers.
Industry RankSector Rank
ROA -4.39%
ROE -220.98%
ROIC 11.95%
ROA(3y)-35.64%
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
NOW.CA Yearly ROA, ROE, ROICNOW.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2021 2022 2023 0 200 -200 -400

1.3 Margins

With a decent Operating Margin value of 7.53%, NOW is doing good in the industry, outperforming 71.64% of the companies in the same industry.
Looking at the Gross Margin, with a value of 59.74%, NOW is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
Industry RankSector Rank
OM 7.53%
PM (TTM) N/A
GM 59.74%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
NOW.CA Yearly Profit, Operating, Gross MarginsNOW.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2021 2022 2023 0 -100 -200 -300 -400

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NOW is creating some value.
Compared to 1 year ago, NOW has more shares outstanding
Compared to 1 year ago, NOW has an improved debt to assets ratio.
NOW.CA Yearly Shares OutstandingNOW.CA Yearly Shares OutstandingYearly Shares Outstanding 2021 2022 2023 20M 40M 60M
NOW.CA Yearly Total Debt VS Total AssetsNOW.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2021 2022 2023 10M 20M 30M 40M

2.2 Solvency

Based on the Altman-Z score of 0.39, we must say that NOW is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.39, NOW is in line with its industry, outperforming 46.27% of the companies in the same industry.
The Debt to FCF ratio of NOW is 72.33, which is on the high side as it means it would take NOW, 72.33 years of fcf income to pay off all of its debts.
NOW has a Debt to FCF ratio of 72.33. This is comparable to the rest of the industry: NOW outperforms 55.22% of its industry peers.
A Debt/Equity ratio of 15.47 is on the high side and indicates that NOW has dependencies on debt financing.
NOW's Debt to Equity ratio of 15.47 is on the low side compared to the rest of the industry. NOW is outperformed by 76.12% of its industry peers.
Industry RankSector Rank
Debt/Equity 15.47
Debt/FCF 72.33
Altman-Z 0.39
ROIC/WACC1.36
WACC8.77%
NOW.CA Yearly LT Debt VS Equity VS FCFNOW.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2021 2022 2023 0 5M -5M 10M 15M

2.3 Liquidity

A Current Ratio of 0.68 indicates that NOW may have some problems paying its short term obligations.
With a Current ratio value of 0.68, NOW is not doing good in the industry: 62.69% of the companies in the same industry are doing better.
A Quick Ratio of 0.68 indicates that NOW may have some problems paying its short term obligations.
NOW has a worse Quick ratio (0.68) than 61.19% of its industry peers.
Industry RankSector Rank
Current Ratio 0.68
Quick Ratio 0.68
NOW.CA Yearly Current Assets VS Current LiabilitesNOW.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2021 2022 2023 5M 10M 15M 20M 25M

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3

3. Growth

3.1 Past

NOW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.88%, which is quite impressive.
The Revenue has grown by 91.42% in the past year. This is a very strong growth!
EPS 1Y (TTM)47.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1750%
Revenue 1Y (TTM)91.42%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-35.17%

3.2 Future

NOW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.57% yearly.
Based on estimates for the next years, NOW will show a very negative growth in Revenue. The Revenue will decrease by -10.23% on average per year.
EPS Next Y166.65%
EPS Next 2Y99.99%
EPS Next 3Y55.25%
EPS Next 5Y45.57%
Revenue Next Year21.6%
Revenue Next 2Y33.08%
Revenue Next 3Y2.59%
Revenue Next 5Y-10.23%

3.3 Evolution

NOW.CA Yearly Revenue VS EstimatesNOW.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 2027 50M 100M
NOW.CA Yearly EPS VS EstimatesNOW.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 2027 0 0.1 -0.1 -0.2 -0.3

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for NOW. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 1.58, the valuation of NOW can be described as very cheap.
97.01% of the companies in the same industry are more expensive than NOW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, NOW is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 1.58
NOW.CA Price Earnings VS Forward Price EarningsNOW.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOW indicates a rather cheap valuation: NOW is cheaper than 88.06% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as NOW.
Industry RankSector Rank
P/FCF 112.96
EV/EBITDA 6.47
NOW.CA Per share dataNOW.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.2 -0.2 0.4 0.6

4.3 Compensation for Growth

NOW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as NOW's earnings are expected to grow with 55.25% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y99.99%
EPS Next 3Y55.25%

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0

5. Dividend

5.1 Amount

NOW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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NOWVERTICAL GROUP INC

TSX-V:NOW (3/7/2025, 7:00:00 PM)

0.375

+0.01 (+1.35%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-14 2024-11-14
Earnings (Next)04-04 2025-04-04/amc
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners30.38%
Ins Owner ChangeN/A
Market Cap35.27M
Analysts82
Price Target0.43 (14.67%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)6.25%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 1.58
P/S 0.58
P/FCF 112.96
P/OCF 139.07
P/B 29.31
P/tB N/A
EV/EBITDA 6.47
EPS(TTM)-0.04
EYN/A
EPS(NY)0.24
Fwd EY63.14%
FCF(TTM)0
FCFY0.89%
OCF(TTM)0
OCFY0.72%
SpS0.64
BVpS0.01
TBVpS-0.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.39%
ROE -220.98%
ROCE 16.59%
ROIC 11.95%
ROICexc 14.46%
ROICexgc N/A
OM 7.53%
PM (TTM) N/A
GM 59.74%
FCFM 0.52%
ROA(3y)-35.64%
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 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover1
Health
Industry RankSector Rank
Debt/Equity 15.47
Debt/FCF 72.33
Debt/EBITDA 2.33
Cap/Depr 1.71%
Cap/Sales 0.1%
Interest Coverage 250
Cash Conversion 3.18%
Profit Quality N/A
Current Ratio 0.68
Quick Ratio 0.68
Altman-Z 0.39
F-Score6
WACC8.77%
ROIC/WACC1.36
Cap/Depr(3y)5.23%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.33%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)47.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1750%
EPS Next Y166.65%
EPS Next 2Y99.99%
EPS Next 3Y55.25%
EPS Next 5Y45.57%
Revenue 1Y (TTM)91.42%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-35.17%
Revenue Next Year21.6%
Revenue Next 2Y33.08%
Revenue Next 3Y2.59%
Revenue Next 5Y-10.23%
EBIT growth 1Y100.63%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year15007.7%
EBIT Next 3Y451.14%
EBIT Next 5Y252.57%
FCF growth 1Y-1.85%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-4.54%
OCF growth 3YN/A
OCF growth 5YN/A