NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
TSX-V:NCI - CA62940V2030 - Common Stock
2.17 CAD
+0.09 (+4.33%)
Overall NCI gets a fundamental rating of 7 out of 10. We evaluated NCI against 63 industry peers in the Software industry. NCI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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 would make NCI suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year NCI was profitable.
In the past year NCI had a positive cash flow from operations.
NCI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NCI had a positive operating cash flow.
1.2 Ratios
NCI's Return On Assets of 31.71% is amongst the best of the industry. NCI outperforms 95.24% of its industry peers.
NCI has a Return On Equity of 65.78%. This is amongst the best in the industry. NCI outperforms 96.83% of its industry peers.
NCI's Return On Invested Capital of 40.02% is amongst the best of the industry. NCI outperforms 100.00% of its industry peers.
| 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's Profit Margin of 15.27% is amongst the best of the industry. NCI outperforms 87.30% of its industry peers.
In the last couple of years the Profit Margin of NCI has grown nicely.
NCI has a better Operating Margin (18.20%) than 85.71% of its industry peers.
NCI's Operating Margin has declined in the last couple of years.
The Gross Margin of NCI (35.89%) is worse than 60.32% of its industry peers.
NCI's Gross Margin has improved in the last couple of years.
| 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
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
The debt/assets ratio for NCI has been reduced compared to a year ago.
2.2 Solvency
NCI has an Altman-Z score of 7.10. 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 7.10, NCI belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
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.
NCI has a Debt to FCF ratio of 6.31. This is in the better half of the industry: NCI outperforms 63.49% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that NCI is not too dependend on debt financing.
NCI has a Debt to Equity ratio (0.41) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.31 | ||
| Altman-Z | 7.1 |
ROIC/WACC3.85
WACC10.4%
2.3 Liquidity
A Current Ratio of 2.47 indicates that NCI has no problem at all paying its short term obligations.
The Current ratio of NCI (2.47) is better than 76.19% of its industry peers.
A Quick Ratio of 2.47 indicates that NCI has no problem at all paying its short term obligations.
NCI has a Quick ratio of 2.47. This is in the better half of the industry: NCI outperforms 76.19% 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.
The Earnings Per Share has been growing by 68.04% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, NCI will show a very strong growth in Earnings Per Share. The EPS will grow by 28.93% on average per year.
Based on estimates for the next years, NCI will show a very strong growth in Revenue. The Revenue will grow by 32.05% on average per year.
EPS Next Y30.08%
EPS Next 2Y28.93%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year45.59%
Revenue Next 2Y32.05%
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 10.33, the valuation of NCI can be described as reasonable.
88.89% of the companies in the same industry are more expensive than NCI, based on the Price/Earnings ratio.
NCI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.17.
A Price/Forward Earnings ratio of 6.87 indicates a rather cheap valuation of NCI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NCI indicates a rather cheap valuation: NCI is cheaper than 93.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.78, NCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 6.87 |
4.2 Price Multiples
NCI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NCI is cheaper than 87.30% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NCI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 91.51 | ||
| EV/EBITDA | 7.46 |
4.3 Compensation for Growth
NCI's 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.
A more expensive valuation may be justified as NCI's earnings are expected to grow with 28.93% in the coming years.
PEG (NY)0.34
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 (8/27/2025, 7:00:00 PM)
2.17
+0.09 (+4.33%)
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 Cap93.77M
Analysts83.64
Price Target4.25 (95.85%)
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)16.55%
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)5.5%
Revenue NY rev (3m)5.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 6.87 | ||
| P/S | 1.46 | ||
| P/FCF | 91.51 | ||
| P/OCF | 43.18 | ||
| P/B | 6.3 | ||
| P/tB | 8.46 | ||
| EV/EBITDA | 7.46 |
EPS(TTM)0.21
EY9.68%
EPS(NY)0.32
Fwd EY14.56%
FCF(TTM)0.02
FCFY1.09%
OCF(TTM)0.05
OCFY2.32%
SpS1.48
BVpS0.34
TBVpS0.26
PEG (NY)0.34
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 | 7.1 |
F-Score6
WACC10.4%
ROIC/WACC3.85
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 Year45.59%
Revenue Next 2Y32.05%
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%