NTG CLARITY NETWORKS INC (NCI.CA) Stock Fundamental Analysis
TSX-V:NCI - TSX Venture Exchange - CA62940V2030 - Common Stock - Currency: CAD
Taking everything into account, NCI scores 7 out of 10 in our fundamental rating. NCI was compared to 64 industry peers in the Software industry. NCI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. NCI is growing strongly while it also seems undervalued. This is an interesting combination This makes NCI very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
NCI had positive earnings in the past year.
NCI had a positive operating cash flow in the past year.
Of the past 5 years NCI 4 years were profitable.
Each year in the past 5 years NCI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 31.71%, NCI belongs to the top of the industry, outperforming 95.31% of the companies in the same industry.
NCI has a Return On Equity of 65.78%. This is amongst the best in the industry. NCI outperforms 95.31% 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 85.94% of the companies in the same industry.
In the last couple of years the Profit Margin of NCI has grown nicely.
With an excellent Operating Margin value of 18.20%, NCI belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of NCI has declined.
Looking at the Gross Margin, with a value of 35.89%, NCI is doing worse than 60.94% of the companies in the same 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NCI is creating value.
NCI has more shares outstanding than it did 1 year ago.
NCI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, NCI has an improved debt to assets ratio.
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.
NCI's Altman-Z score of 6.89 is amongst the best of the industry. NCI outperforms 84.38% of its industry peers.
The Debt to FCF ratio of NCI is 6.31, which is on the high side as it means it would take NCI, 6.31 years of fcf income to pay off 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 64.06% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that NCI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.41, NCI is in line with its industry, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 6.31 | ||
| Altman-Z | 6.89 |
ROIC/WACC4.13
WACC9.68%
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.
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 75.00% 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 195.35% over the past year.
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 27.94% on average per year.
NCI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 30.02% yearly.
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
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
With a Price/Earnings ratio of 9.76, the valuation of NCI can be described as very reasonable.
Based on the Price/Earnings ratio, NCI is valued cheaper than 90.63% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. NCI is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.59 indicates a rather cheap valuation of NCI.
Based on the Price/Forward Earnings ratio, NCI is valued cheaper than 92.19% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, NCI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 6.59 |
4.2 Price Multiples
NCI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NCI is cheaper than 87.50% 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 | 86.05 | ||
| 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
NCI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:NCI (7/11/2025, 7:00:00 PM)
2.05
-0.05 (-2.38%)
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 Cap88.17M
Analysts83.64
Price Target4.25 (107.32%)
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 | 9.76 | ||
| Fwd PE | 6.59 | ||
| P/S | 1.38 | ||
| P/FCF | 86.05 | ||
| P/OCF | 40.6 | ||
| P/B | 5.93 | ||
| P/tB | 7.96 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)0.21
EY10.24%
EPS(NY)0.31
Fwd EY15.17%
FCF(TTM)0.02
FCFY1.16%
OCF(TTM)0.05
OCFY2.46%
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
WACC9.68%
ROIC/WACC4.13
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%