NCC Group plc (NCC) AI Stock Analysis

• Market Cap: £417.73M
• Dividend Yield: 2.16%
• Average Volume (3M): 888.21K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.93
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 2,200
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 315,227,900
• 10 Day Avg. Volume: 713,002
• 30 Day Avg. Volume: 888,210
• PEG Ratio: -0.16
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 1.90
• P/FCF Ratio: 15.76
• 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: £175.00
• Price Target Upside: 21.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: 147.00p ▲(1.94% Upside)

NCC Group plc's overall stock score is primarily influenced by its financial performance, which shows strong cash flow management and a stable balance sheet despite revenue and profitability challenges. Technical analysis indicates neutral momentum, while valuation suggests the stock may be overvalued. The absence of earnings call data and corporate events means these factors do not impact the score.

Positive Factors

Cash Flow Management

Strong cash flow management and growth in free cash flow highlight NCC's ability to generate cash efficiently, supporting long-term operations and investments despite revenue challenges.

Balance Sheet Health

A low debt-to-equity ratio indicates prudent financial management, providing NCC with stability and flexibility to navigate market challenges and invest in growth opportunities.

Revenue Model Diversification

Subscription-based services provide a stable revenue stream, enhancing NCC's financial resilience and ability to weather market fluctuations while capitalizing on growing demand for cybersecurity.

Negative Factors

Revenue Decline

A significant revenue decline poses a challenge to NCC's growth prospects, potentially impacting its ability to invest in new technologies and expand market share.

Profitability Challenges

Negative EBIT margins indicate ongoing profitability issues, which could hinder NCC's capacity to reinvest in its business and maintain competitive positioning in the cybersecurity sector.

Inconsistent Return on Equity

Inconsistent return on equity suggests variability in financial performance, which may affect investor confidence and the company's ability to attract long-term investment.

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 generates revenue through multiple streams, primarily based on the provision of cybersecurity services and solutions. The company earns income from consulting fees for its cybersecurity assessments, audits, and testing services, which are often project-based or retainer agreements. Additionally, NCC offers subscription-based services, such as ongoing security monitoring and risk management solutions, providing a stable revenue source. Strategic partnerships with technology providers and participation in industry collaborations further enhance NCC's service offerings, allowing the company to integrate advanced technologies into its solutions. The growing demand for cybersecurity services driven by increasing regulatory pressures and rising cyber threats contributes significantly to NCC's revenue growth.

NCC Group plc Financial Statement Overview

Summary

NCC Group plc faces challenges in revenue growth and profitability, with a significant decline in revenue and negative EBIT margins. However, the company maintains a strong cash flow position and a stable balance sheet, with a low debt-to-equity ratio and strong cash flow management.

Income Statement

NCC Group plc has experienced a significant decline in revenue, with a 26.36% decrease in the most recent year. The company has struggled with profitability, as evidenced by negative EBIT margins and fluctuating net profit margins. Despite these challenges, the company managed to achieve a positive net income in the latest period, indicating some recovery potential.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.11, indicating conservative leverage. However, the return on equity has been inconsistent, with recent improvements. The equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

NCC Group plc has demonstrated strong cash flow management, with a notable 39.13% growth in free cash flow. The operating cash flow to net income ratio is healthy, and the free cash flow to net income ratio indicates efficient cash conversion. These metrics highlight the company's ability to generate cash despite revenue challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	324.40M	238.90M	322.13M	335.10M	314.80M	270.50M
Gross Profit	123.60M	68.40M	112.05M	109.40M	112.90M	90.90M
EBITDA	4.60M	13.90M	7.58M	24.50M	54.60M	37.00M
Net Income	-24.90M	17.10M	-24.90M	-4.60M	23.00M	10.00M
Balance Sheet
Total Assets	433.30M	343.30M	433.30M	501.40M	576.40M	432.30M
Cash, Cash Equivalents and Short-Term Investments	18.00M	12.50M	29.80M	34.10M	73.20M	116.50M
Total Debt	87.30M	22.80M	102.70M	113.70M	158.20M	67.60M
Total Liabilities	198.30M	136.80M	198.30M	223.20M	283.20M	166.10M
Stockholders Equity	235.00M	206.50M	235.00M	278.20M	293.20M	266.20M
Cash Flow
Free Cash Flow	20.70M	28.80M	20.20M	24.80M	46.60M	34.10M
Operating Cash Flow	27.30M	33.50M	26.40M	32.10M	54.80M	38.90M
Investing Cash Flow	3.70M	56.30M	2.60M	-6.30M	-161.20M	-4.30M
Financing Cash Flow	-49.40M	-90.80M	-47.40M	-67.30M	61.80M	-6.80M

NCC Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 144.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 144.2 is above the 20-day moving average (MA) of 138.95, above the 50-day MA of 142.74, and below the 200-day MA of 145.41, indicating a bearish trend. The MACD of -1.86 indicates Negative momentum. The RSI at 39.82 is Neutral, neither overbought nor oversold. The STOCH value of 52.05 is Neutral, 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
ALFA	74 Outperform	£624.75M	21.04	62.38%	3.58%	18.44%	33.73%
GBG	70 Outperform	£561.99M	66.16	1.56%	1.73%	-0.18%	11.49%
IDOX	66 Neutral	£324.66M	51.97	8.06%	1.04%	10.93%	12.30%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCC	54 Neutral	£417.73M	24.45	―	2.16%	―	―
TRST	54 Neutral	£840.96M	1,067.00	2.53%	―	18.75%	-93.75%
ATG	52 Neutral	£380.22M	-3.57	-23.77%	―	5.83%	-663.14%

NCC Group plc Corporate Events

NCC Group Confirms Total Voting Rights at 315.2 Million Shares

NCC Group plc has confirmed that its issued ordinary share capital now comprises 315,227,905 ordinary shares of 1 pence each, all carrying voting rights. The updated figure, published in line with UK disclosure and transparency requirements, provides the official denominator for investors to calculate whether they must report holdings or changes in holdings, ensuring continued regulatory compliance and transparency for shareholders and the market.

The most recent analyst rating on (GB:NCC) stock is a Hold with a £147.00 price target. To see the full list of analyst forecasts on NCC Group plc stock, see the GB:NCC Stock Forecast page.

NCC Group Publishes 2025 Annual Report and Sets Date for 2026 AGM

NCC Group plc has published its Annual Report and Accounts for the year ended 30 September 2025 and the Notice of its 2026 Annual General Meeting, making both documents available to shareholders via post or online and through the National Storage Mechanism. The AGM is scheduled for 1:00 p.m. on 3 March 2026 at the company’s Manchester headquarters, providing investors with a formal opportunity to review the latest financial year’s performance and governance disclosures, and to vote on resolutions that will shape the Group’s strategic direction in the competitive global cyber security market.

The most recent analyst rating on (GB:NCC) stock is a Hold with a £147.00 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 Add Shares Through UK Incentive Plan

NCC Group has disclosed that several senior executives, including Chief Executive Officer Mike Maddison, Chief Financial Officer Guy Ellis, Chief Marketing Officer Angela Brown and Jayesh Patel, Managing Director of Escode, have all purchased small amounts of NCC Group ordinary shares under the company’s UK Share Incentive Plan. The transactions, executed on 17 December 2025 on the London Stock Exchange at a price of £1.3893 per share, indicate ongoing management participation in the share scheme, modestly aligning leadership interests with those of shareholders and reaffirming internal confidence in the business through regular share accumulation rather than any one-off strategic move.

The most recent analyst rating on (GB:NCC) stock is a Hold with a £153.00 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 Strategic Progress and Return to Growth

NCC Group plc reported its preliminary audited results for the year ending 30 September 2025, highlighting strategic progress and a return to profitable growth. The company experienced a slight decline in overall revenue but saw consistent growth in its Escode business and a return to growth in its Cyber Security division in the latter half of the year. The sale of Fox Crypto has strengthened the balance sheet, eliminating net debt and allowing for strategic investments and potential shareholder returns. The company is exploring strategic options for its Escode business, which could include a sale, and continues to review its Cyber Security operations independently. Despite a challenging macro environment, NCC Group remains confident in its strategy to achieve sustainable growth and long-term success.

The most recent analyst rating on (GB:NCC) stock is a Hold with a £153.00 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 Increase Shareholdings

NCC Group plc, a company involved in cybersecurity and risk mitigation, has announced transactions involving its senior management. The company’s CEO, CFO, CMO, COO, and Managing Director have participated in the monthly purchase of ordinary shares under the UK Share Incentive Plan. These transactions, conducted on the London Stock Exchange, reflect ongoing investment by key executives, potentially signaling confidence in the company’s future performance.

The most recent analyst rating on (GB:NCC) stock is a Hold with a £153.00 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 Increase Shareholdings

NCC Group plc has announced the monthly purchase of its ordinary shares by key executives under the UK Share Incentive Plan. This notification includes transactions by the CEO, CFO, CMO, COO, and Managing Director of Escode, reflecting a consistent investment in the company’s stock, which may signal confidence in NCC Group’s future performance and stability.

The most recent analyst rating on (GB:NCC) stock is a Hold with a £153.00 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 Revenue Decline, Explores Strategic Options

NCC Group plc reported a slight decline in overall revenue for the year ended 30 September 2025, with a 2.5% decrease to approximately £294 million. While the Escode business saw a growth of 2%, the Cyber Security segment experienced a 4% decline. Despite this, the company maintained operational discipline with improved gross margins and expects adjusted EBITDA to align with the Board’s expectations at £43.5 million. The company is exploring strategic options for its Escode business, including a potential sale, and plans to initiate a share buy-back program, reflecting confidence in its future prospects and financial stability.

The most recent analyst rating on (GB:NCC) stock is a Hold with a £153.00 price target. To see the full list of analyst forecasts on NCC Group plc stock, see the GB:NCC Stock Forecast page.