NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
Canada - TSX-V:NCI - CA62940V2030 - Common Stock
1.64 CAD
-0.06 (-3.53%)
Overall NCI gets a fundamental rating of 7 out of 10. We evaluated NCI against 63 industry peers in the Software industry. NCI has an excellent profitability rating, but there are some minor concerns on its financial health. NCI is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make NCI suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
NCI had positive earnings in the past year.
In the past year NCI has reported a negative 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
With an excellent Return On Assets value of 23.92%, NCI belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
Looking at the Return On Equity, with a value of 48.54%, NCI belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
With an excellent Return On Invested Capital value of 37.82%, NCI belongs to the best of the industry, outperforming 98.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.92% | ||
| ROE | 48.54% | ||
| ROIC | 37.82% |
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 11.05%, NCI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of NCI has grown nicely.
Looking at the Operating Margin, with a value of 16.29%, NCI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of NCI has declined.
NCI has a Gross Margin of 36.56%. This is comparable to the rest of the industry: NCI outperforms 41.27% of its industry peers.
In the last couple of years the Gross Margin of NCI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.29% | ||
| PM (TTM) | 11.05% | ||
| GM | 36.56% |
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
NCI has more shares outstanding than it did 5 years ago.
NCI has a better debt/assets ratio than last year.
2.2 Solvency
NCI has an Altman-Z score of 6.56. This indicates that NCI is financially healthy and has little risk of bankruptcy at the moment.
NCI has a Altman-Z score of 6.56. This is in the better half of the industry: NCI outperforms 74.60% of its industry peers.
NCI has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
NCI's Debt to Equity ratio of 0.36 is in line compared to the rest of the industry. NCI outperforms 46.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.56 |
ROIC/WACC3.76
WACC10.07%
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 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.
With a decent Quick ratio value of 2.47, NCI is doing good in the industry, outperforming 74.60% of the companies in the same industry.
| 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 51.19% 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.
NCI shows a strong growth in Revenue. In the last year, the Revenue has grown by 78.50%.
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)51.19%
EPS 3Y68.04%
EPS 5YN/A
EPS Q2Q%-83.75%
Revenue 1Y (TTM)78.5%
Revenue growth 3Y67.72%
Revenue growth 5Y45.43%
Sales Q2Q%51.15%
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 23.92% on average per year.
NCI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 32.26% yearly.
EPS Next Y13.82%
EPS Next 2Y23.92%
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.
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
With a Price/Earnings ratio of 10.25, the valuation of NCI can be described as very reasonable.
NCI's Price/Earnings ratio is rather cheap when compared to the industry. NCI is cheaper than 95.24% 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 25.67.
NCI is valuated cheaply with a Price/Forward Earnings ratio of 5.62.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NCI indicates a rather cheap valuation: NCI is cheaper than 95.24% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NCI to the average of the S&P500 Index (31.86), we can say NCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 5.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NCI is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.61 |
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 23.92% in the coming years.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y23.92%
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 (11/6/2025, 7:00:00 PM)
1.64
-0.06 (-3.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners0.13%
Inst Owner ChangeN/A
Ins Owners24.6%
Ins Owner ChangeN/A
Market Cap77.64M
Revenue(TTM)70.46M
Net Income(TTM)7.78M
Analysts83.64
Price Target4.25 (159.15%)
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)0
Avg EPS beat(2)-58.88%
Min EPS beat(2)-85.29%
Max EPS beat(2)-32.46%
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)1
Avg Revenue beat(2)1.27%
Min Revenue beat(2)-5.69%
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%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.25 | ||
| Fwd PE | 5.62 | ||
| P/S | 1.1 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 4.84 | ||
| P/tB | 6.28 | ||
| EV/EBITDA | 6.61 |
EPS(TTM)0.16
EY9.76%
EPS(NY)0.29
Fwd EY17.79%
FCF(TTM)-0.04
FCFYN/A
OCF(TTM)-0.02
OCFYN/A
SpS1.49
BVpS0.34
TBVpS0.26
PEG (NY)0.74
PEG (5Y)N/A
Graham Number1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.92% | ||
| ROE | 48.54% | ||
| ROCE | 52.53% | ||
| ROIC | 37.82% | ||
| ROICexc | 42.18% | ||
| ROICexgc | 51.88% | ||
| OM | 16.29% | ||
| PM (TTM) | 11.05% | ||
| GM | 36.56% | ||
| FCFM | N/A |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover2.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 80.36% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 28.9 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 | ||
| Altman-Z | 6.56 |
F-Score6
WACC10.07%
ROIC/WACC3.76
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)51.19%
EPS 3Y68.04%
EPS 5YN/A
EPS Q2Q%-83.75%
EPS Next Y13.82%
EPS Next 2Y23.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)78.5%
Revenue growth 3Y67.72%
Revenue growth 5Y45.43%
Sales Q2Q%51.15%
Revenue Next Year45.56%
Revenue Next 2Y32.26%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y124.63%
EBIT growth 3Y62.24%
EBIT growth 5YN/A
EBIT Next Year59.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-354.73%
FCF growth 3Y85.08%
FCF growth 5YN/A
OCF growth 1Y-129.64%
OCF growth 3Y12.61%
OCF growth 5Y234.98%
NTG CLARITY NETWORKS INC / NCI.CA FAQ
What is the fundamental rating for NCI stock?
ChartMill assigns a fundamental rating of 7 / 10 to NCI.CA.
Can you provide the valuation status for NTG CLARITY NETWORKS INC?
ChartMill assigns a valuation rating of 8 / 10 to NTG CLARITY NETWORKS INC (NCI.CA). This can be considered as Undervalued.
Can you provide the profitability details for NTG CLARITY NETWORKS INC?
NTG CLARITY NETWORKS INC (NCI.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for NCI stock?
The Price/Earnings (PE) ratio for NTG CLARITY NETWORKS INC (NCI.CA) is 10.25 and the Price/Book (PB) ratio is 4.84.
Can you provide the financial health for NCI stock?
The financial health rating of NTG CLARITY NETWORKS INC (NCI.CA) is 6 / 10.