NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada - TSX-V:NCI - CA62940V2030 - Common Stock
1.74 CAD
+0.04 (+2.35%)
NCI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 64 industry peers in the Software industry. NCI gets an excellent profitability rating and is at the same time showing great financial health properties. NCI is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make NCI a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year NCI was profitable.
NCI had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 31.71%, NCI belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
NCI has a better Return On Equity (65.78%) than 96.88% of its industry peers.
NCI has a better Return On Invested Capital (40.02%) than 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 has a better Profit Margin (15.27%) than 89.06% of its industry peers.
In the last couple of years the Profit Margin of NCI has grown nicely.
NCI's Operating Margin of 18.20% is amongst the best of the industry. NCI outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of NCI has declined.
NCI has a Gross Margin (35.89%) which is in line with its industry peers.
In the last couple of years the Gross Margin of NCI has grown nicely.
| 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
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.
Compared to 5 years ago, NCI has more shares outstanding
NCI has a better debt/assets ratio than last year.
2.2 Solvency
NCI has an Altman-Z score of 6.60. 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 6.60, NCI is in the better half of the industry, outperforming 76.56% 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 better Debt to FCF ratio (6.31) than 64.06% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.31 | ||
| Altman-Z | 6.6 |
ROIC/WACC3.86
WACC10.38%
2.3 Liquidity
A Current Ratio of 2.47 indicates that NCI has no problem at all paying its short term obligations.
NCI has a Current ratio of 2.47. This is in the better half of the industry: NCI outperforms 75.00% of its industry peers.
A Quick Ratio of 2.47 indicates that NCI has no problem at all paying its short term obligations.
NCI's Quick ratio of 2.47 is fine compared to the rest of the industry. NCI outperforms 75.00% of its industry peers.
| 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 195.35% over the past year.
NCI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 68.04% yearly.
The Revenue has grown by 92.08% in the past year. This is a very strong growth!
Measured over the past years, NCI shows a very strong growth in Revenue. The Revenue has been growing by 45.43% on average per year.
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 32.26% on average per year.
EPS Next Y30.08%
EPS Next 2Y28.93%
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
A Price/Earnings ratio of 8.29 indicates a reasonable valuation of NCI.
NCI's Price/Earnings ratio is rather cheap when compared to the industry. NCI is cheaper than 92.19% of the companies in the same industry.
NCI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
The Price/Forward Earnings ratio is 5.51, which 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 95.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. NCI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 5.51 |
4.2 Price Multiples
NCI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NCI is cheaper than 89.06% 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 | 80.33 | ||
| EV/EBITDA | 6.41 |
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.
The decent profitability rating of NCI may justify a higher PE ratio.
NCI's earnings are expected to grow with 28.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y28.93%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for NCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:NCI (9/19/2025, 7:00:00 PM)
1.74
+0.04 (+2.35%)
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 Cap82.30M
Analysts83.64
Price Target4.25 (144.25%)
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)0.4%
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)-0.01%
Revenue NY rev (3m)5.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 5.51 | ||
| P/S | 1.28 | ||
| P/FCF | 80.33 | ||
| P/OCF | 37.9 | ||
| P/B | 5.53 | ||
| P/tB | 7.43 | ||
| EV/EBITDA | 6.41 |
EPS(TTM)0.21
EY12.07%
EPS(NY)0.32
Fwd EY18.15%
FCF(TTM)0.02
FCFY1.24%
OCF(TTM)0.05
OCFY2.64%
SpS1.35
BVpS0.31
TBVpS0.23
PEG (NY)0.28
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 | 6.6 |
F-Score6
WACC10.38%
ROIC/WACC3.86
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 Year45.56%
Revenue Next 2Y32.26%
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%