NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
TSX-V:NCI - TSX Venture Exchange - CA62940V2030 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to NCI. NCI was compared to 63 industry peers in the Software industry. Both the health and profitability get an excellent rating, making NCI a very profitable company, without any liquidiy or solvency issues. NCI is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make NCI suitable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
NCI had positive earnings in the past year.
In the past year NCI had a positive 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
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 better Return On Equity (65.78%) than 95.24% of its industry peers.
The Return On Invested Capital of NCI (40.02%) is better 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
Looking at the Profit Margin, with a value of 15.27%, NCI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
NCI's Profit Margin has improved in the last couple of years.
NCI's Operating Margin of 18.20% is amongst the best of the industry. NCI outperforms 87.30% of its industry peers.
NCI's Operating Margin has declined in the last couple of years.
NCI has a Gross Margin (35.89%) which is comparable to the rest of the industry.
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
NCI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for NCI has been increased compared to 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 6.89. 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 6.89, NCI belongs to the top of the industry, outperforming 84.13% 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.
Looking at the Debt to FCF ratio, with a value of 6.31, NCI is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
NCI has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.41, NCI is in line with its industry, outperforming 46.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.31 | ||
| Altman-Z | 6.89 |
ROIC/WACC4.21
WACC9.5%
2.3 Liquidity
NCI has a Current Ratio of 2.47. This indicates that NCI is financially healthy and has no problem in meeting its short term obligations.
NCI's Current ratio of 2.47 is fine compared to the rest of the industry. NCI outperforms 74.60% of its industry peers.
NCI has a Quick Ratio of 2.47. This indicates that NCI is financially healthy and has no problem in meeting its short term obligations.
NCI has a Quick ratio of 2.47. This is in the better half of the industry: NCI outperforms 74.60% 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%.
The Revenue has been growing by 45.43% on average over the past years. This is a very strong growth!
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 27.94% 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 30.02% on average per year.
EPS Next Y39.57%
EPS Next 2Y27.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year38%
Revenue Next 2Y30.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.95, the valuation of NCI can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of NCI indicates a rather cheap valuation: NCI is cheaper than 90.48% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NCI to the average of the S&P500 Index (27.52), we can say NCI is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.72, 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 92.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, NCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 6.72 |
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.
NCI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.73 | ||
| EV/EBITDA | 7.02 |
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 27.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y27.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for NCI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:NCI (7/14/2025, 7:00:00 PM)
2.09
+0.04 (+1.95%)
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 Cap89.89M
Analysts83.64
Price Target4.25 (103.35%)
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)0.4%
PT rev (3m)13.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-10.43%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 6.72 | ||
| P/S | 1.4 | ||
| P/FCF | 87.73 | ||
| P/OCF | 41.39 | ||
| P/B | 6.04 | ||
| P/tB | 8.11 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)0.21
EY10.05%
EPS(NY)0.31
Fwd EY14.88%
FCF(TTM)0.02
FCFY1.14%
OCF(TTM)0.05
OCFY2.42%
SpS1.49
BVpS0.35
TBVpS0.26
PEG (NY)0.25
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 | 6.89 |
F-Score6
WACC9.5%
ROIC/WACC4.21
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 Y39.57%
EPS Next 2Y27.94%
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 Year38%
Revenue Next 2Y30.02%
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%