NCC Group plc (NCC) AI Stock Analysis

• Market Cap: £456.04M
• Dividend Yield: 2.07%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 2,200
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.05
• Shares Outstanding: 314,944,460
• 10 Day Avg. Volume: 1,747,991
• 30 Day Avg. Volume: 1,068,473
• PEG Ratio: 0.51
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: 153.00p ▲(8.82%Upside)

The overall score is influenced by strong corporate events that reflect strategic growth initiatives and management confidence. However, financial performance and valuation concerns, along with bearish technical indicators, weigh down the stock's attractiveness.

NCC Group plc Business Overview & Revenue Model

Company Description

NCC Group plc engages in the cyber and software resilience business in the United Kingdom, the Asian-Pacific, North America, and Europe. It operates in two segments, Assurance and Software Resilience. The company offers assessment and advisory services, which include risk management, supply chain risk, cloud and infrastructure, application and security software, mobile, managed vulnerability scanning, hardware and embedded systems, and cryptography, as well as calibrator and cyber security review solutions. It also provides detection and response services, including managed detection and response, incident response, and threat intelligence; compliance services, such as data privacy, government security, and payments; and remediation and big bounty services. In addition, the company offers training services for end-users, administrators, tech specialists, and managers. Further, it provides software resilience services, such as cloud software escrow solutions, on-premises software escrow agreements, on-premises software escrow verification, virtual and physical escrow vaults, software security testing, and software risk assessment tools. The company serves customers in various industries that include finance and professional, transport and manufacturing, public, retail, and energy and utilities, as well as technology, media, telecommunications sectors. NCC Group plc was founded in 1999 and is headquartered in Manchester, the United Kingdom.

How the Company Makes Money

NCC Group makes money through a diverse revenue model primarily driven by its Cyber Assurance and Software Resilience divisions. The Cyber Assurance segment generates revenue by providing cybersecurity consulting, testing, and managed services to help organizations identify and mitigate cyber risks. This includes penetration testing, incident response, and compliance assessments. The Software Resilience division earns income by offering software escrow and verification services, ensuring that businesses have access to their software and data in the event of supplier failure. Key revenue streams include consulting fees, subscription-based managed services, and contracts for software escrow arrangements. Additionally, NCC Group benefits from strategic partnerships and collaborations with technology providers and enterprises, enhancing its service offerings and expanding its market reach.

NCC Group plc Financial Statement Overview

Summary

NCC Group plc shows a mixed financial performance with solid cash flow management and a stable balance sheet. However, profitability metrics are under pressure due to recent losses, highlighted by a negative EBIT and net profit margin. The company needs to enhance operational efficiency and revenue growth.

Income Statement

NCC Group plc has shown inconsistent revenue growth, with a decline of 3.19% in the most recent year. The gross profit margin improved to 41.41% from 32.63% the previous year, indicating better cost management. However, the company incurred a negative EBIT margin (-6.63%) and net profit margin (-7.68%) for the latest period, reflecting operational challenges impacting profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.37, indicating a conservative capital structure. The equity ratio stands at 54.23%, signifying a stable financial position with more than half of the assets financed by equity. However, the return on equity has turned negative at -10.60%, highlighting the recent losses impacting shareholder returns.

Cash Flow

NCC Group plc's free cash flow remains positive, although it decreased by 10.08% compared to the previous year. The operating cash flow to net income ratio is robust at -1.10, reflecting strong cash generation relative to the accounting losses. However, the free cash flow to net income ratio indicates operational efficiency challenges.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	324.40M	335.10M	314.80M	270.50M	263.70M
Gross Profit	136.30M	109.40M	112.90M	90.90M	80.80M
EBITDA	7.58M	40.20M	54.60M	50.70M	45.10M
Net Income	-24.90M	-4.60M	23.00M	10.00M	6.40M
Balance Sheet
Total Assets	433.30M	501.40M	576.40M	432.30M	437.20M
Cash, Cash Equivalents and Short-Term Investments	29.80M	34.10M	73.20M	116.50M	95.00M
Total Debt	87.30M	113.70M	158.20M	67.60M	137.40M
Total Liabilities	198.30M	223.20M	283.20M	166.10M	231.30M
Stockholders Equity	235.00M	278.20M	293.20M	266.20M	205.90M
Cash Flow
Free Cash Flow	22.30M	24.80M	46.60M	34.10M	33.90M
Operating Cash Flow	26.40M	32.10M	54.80M	38.90M	39.20M
Investing Cash Flow	3.70M	-6.30M	-161.20M	-4.30M	-5.30M
Financing Cash Flow	-49.40M	-67.30M	61.80M	-6.80M	26.20M

NCC Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 140.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NCC, the sentiment is Negative. The current price of 140.6 is below the 20-day moving average (MA) of 153.27, below the 50-day MA of 152.06, and below the 200-day MA of 148.23, indicating a bearish trend. The MACD of -3.59 indicates Positive momentum. The RSI at 34.45 is Neutral, neither overbought nor oversold. The STOCH value of 18.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NCC.

NCC Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNOS	75 Outperform	£909.89M	26.30	24.12%	14.92%	-4.13%	23.09%
IDOX	73 Outperform	£298.21M	47.74	8.06%	1.07%	10.93%	12.30%
SGE	73 Outperform	£11.85B	35.31	36.78%	0.87%	7.69%	32.91%
Sector *	63 Neutral	£569.62M	24.58	-6.00%	2.45%	3.52%	-29.29%
TRST	61 Neutral	£976.06M	211.82	12.00%	―	16.23%	-17.91%
NCC	59 Neutral	£456.04M	―	-10.60%	2.07%	―	―
GBG	57 Neutral	£581.71M	68.77	1.40%	1.88%	1.63%	―

NCC Group plc Corporate Events

NCC Group Sees Major Shareholding Shift as Richard Griffiths Increases Stake

NCC Group plc, a company involved in the cybersecurity and risk mitigation industry, has announced a significant change in its shareholder structure. Richard Griffiths has increased his voting rights in the company to 13.05% following an acquisition, indicating a potential shift in influence within the company’s governance. This development could impact NCC Group’s strategic decisions and stakeholder interests moving forward.

The most recent analyst rating on (GB:NCC) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on NCC Group plc stock, see the GB:NCC Stock Forecast page.

NCC Group Executives Participate in Share Incentive Plan

NCC Group plc has announced the monthly purchase of ordinary shares by its senior management team, including the CEO, CFO, CMO, COO, and Managing Director of Escode, under the UK Share Incentive Plan. This move reflects the company’s ongoing commitment to aligning the interests of its leadership with those of shareholders, potentially enhancing stakeholder confidence and reinforcing its market position.

The most recent analyst rating on (GB:NCC) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on NCC Group plc stock, see the GB:NCC Stock Forecast page.

NCC Group Reports Strong Profit Growth Amid Strategic Shift

NCC Group plc reported a significant increase in pre-tax profit for the first half of 2025, primarily due to the sale of its Fox Crypto business, which eliminated the company’s net debt. The Cyber Security division is shifting towards strategic client relationships, despite a decline in revenue from high-volume, lower-value engagements. The company is exploring the sale of its Escode business, which has shown consistent revenue growth, to potentially return capital to shareholders and invest further in Cyber Security. The financial results reflect a strategic pivot and operational efficiencies, positioning NCC Group for future growth and value-enhancing acquisitions.

The most recent analyst rating on (GB:NCC) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on NCC Group plc stock, see the GB:NCC Stock Forecast page.

NCC Group Announces Change in Major Shareholdings

NCC Group plc has announced a change in its major holdings, with Richard Griffiths increasing his voting rights to 11.34% as of May 29, 2025. This adjustment in shareholding reflects a strategic move that could influence the company’s governance and future decisions, potentially impacting stakeholders and the company’s market position.

The most recent analyst rating on (GB:NCC) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on NCC Group plc stock, see the GB:NCC Stock Forecast page.

NCC Group Announces Total Voting Rights Update

NCC Group plc has announced that its total issued ordinary share capital comprises 314,944,464 shares, each with a nominal value of 1 pence. This update is crucial for shareholders as it affects the calculations needed to determine any changes in their interest in the company’s share capital, in accordance with the Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:NCC) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on NCC Group plc stock, see the GB:NCC Stock Forecast page.

NCC Group Executives Purchase Shares Under Incentive Plan

NCC Group plc announced the monthly purchase of ordinary shares by several of its top executives, including the CEO, CFO, CMO, COO, and Managing Director, under the UK Share Incentive Plan. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to aligning the interests of its leadership with those of its shareholders, potentially strengthening stakeholder confidence in its governance and strategic direction.

The most recent analyst rating on (GB:NCC) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on NCC Group plc stock, see the GB:NCC Stock Forecast page.

NCC Group Announces Change in Major Holdings

NCC Group plc has announced a change in its major holdings, with Richard Griffiths increasing his voting rights to 10.31% as of April 29, 2025. This adjustment in holdings could impact NCC Group’s governance and decision-making processes, potentially influencing its strategic direction and affecting stakeholders.

NCC Group Explores Options for Escode Business Amid Acquisition Speculation

NCC Group plc has acknowledged recent media speculation about potential interest in acquiring its Escode business. The company is exploring various options, including a possible sale, but emphasizes that discussions are in the preliminary stages with no formal proposals received yet. Stakeholders will be informed of any significant developments.

NCC Group Secures £120m Credit Facility for Strategic Growth

NCC Group plc has secured a new four-year £120 million multi-currency revolving credit facility to support its strategic growth plans. This new facility, which includes a £50 million uncommitted accordion option, replaces the previous £162.5 million facility and provides the company with the financial flexibility to pursue its objectives beyond 2025.

NCC Group Announces Change in Major Holdings

NCC Group plc has announced a change in its major holdings, with Richard Griffiths now holding a 9.26% stake in the company, up from a previous position of 8.06%. This increase in holdings indicates a significant shift in the ownership structure, potentially impacting the company’s strategic direction and stakeholder interests.

NCC Group Executives Participate in Share Incentive Plan

NCC Group plc has announced the monthly purchase of its ordinary shares by key executives under the UK Share Incentive Plan. This move, involving the CEO, CFO, CMO, COO, and Managing Director of Escode, reflects a commitment to align management interests with shareholder value, potentially strengthening stakeholder confidence and enhancing the company’s market positioning.

NCC Group Executives Reinvest Dividends in Company Shares

NCC Group plc announced transactions involving its senior management, including the CEO, CFO, COO, and CMO, who have reinvested dividends to purchase ordinary shares of the company. These transactions, conducted on the London Stock Exchange, reflect the executives’ confidence in the company’s future performance and align their interests with those of shareholders.