Netcall (NET) AI Stock Analysis

• Market Cap: £187.53M
• Dividend Yield: 0.81%
• Average Volume (3M): 291.59K
• Price to Earnings (P/E): 44.9
• Beta (1Y): 0.62
• Revenue Growth: 22.80%
• EPS Growth: -32.13%
• Country: UK
• Employees: 283
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): <0.01
• Shares Outstanding: 170,483,750
• 10 Day Avg. Volume: 196,541
• 30 Day Avg. Volume: 291,589
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £152.50
• Price Target Upside: 37.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: 117.00p ▲(5.41% Upside)

Netcall's strong financial performance is the most significant factor, supported by consistent revenue growth and a solid balance sheet. However, bearish technical indicators and a high P/E ratio suggest caution. The absence of earnings call data and corporate events leaves these areas unassessed.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product offerings, enhancing long-term business sustainability.

Balance Sheet Health

A solid balance sheet with minimal leverage provides financial stability and flexibility, supporting future growth and investment opportunities.

Cash Generation Ability

Strong cash generation relative to net income ensures liquidity and the ability to reinvest in business operations, supporting long-term growth.

Negative Factors

Decline in Net Income

A decline in net income suggests potential profitability challenges, which could impact the company's ability to sustain growth and invest in new opportunities.

Free Cash Flow Growth Decline

A decline in free cash flow growth may limit the company's ability to fund new projects and return value to shareholders, affecting long-term strategic initiatives.

Earnings Volatility

Earnings volatility can create uncertainty in financial performance, potentially affecting investor confidence and the company's ability to plan for the future.

Netcall Business Overview & Revenue Model

Company Description

Netcall (NET) is a UK-based technology company specializing in customer engagement and business process automation solutions. It operates primarily in the software sector, offering products that empower organizations to enhance customer interactions and streamline operations. Key offerings include its low-code development platform, Liberty, which enables businesses to build and deploy applications quickly, and its customer engagement solutions that integrate various communication channels to improve service delivery.

How the Company Makes Money

Netcall generates revenue through a combination of subscription-based services, software licenses, and professional services. The primary revenue stream comes from subscriptions to its low-code platform and customer engagement software, which allows clients to access and utilize these tools on a recurring basis. Additionally, Netcall earns money through the sale of software licenses for its products, which can be a one-time fee or structured as part of a longer-term contract. The company also offers professional services, including consulting, implementation, and training, which provide further revenue opportunities. Significant partnerships with other technology and service providers enhance its offerings and expand market reach, contributing to overall earnings.

Netcall Financial Statement Overview

Summary

Netcall exhibits strong financial performance with consistent revenue growth, improving profitability, and robust cash generation. The company maintains a high gross profit margin and improved net profit margin, supported by strong cash flow and a solid balance sheet with low leverage.

Income Statement

Netcall demonstrates strong financial performance with consistent revenue growth and improving profitability. The revenue has grown significantly from £22.9M in 2019 to £39.1M in 2024, marking a healthy growth trajectory. The gross profit margin remains high at approximately 79.9% in 2024. The net profit margin has improved to 15.0% from 2.7% in 2019, reflecting enhanced operational efficiency. Both EBIT and EBITDA margins have increased, indicating robust earnings performance.

Balance Sheet

The balance sheet is stable with a solid equity position. The debt-to-equity ratio is low at 0.012, indicating low leverage and financial risk. Return on Equity (ROE) is strong at 14.5%, showcasing efficient utilization of equity to generate profits. Equity ratio stands at 52.6%, reflecting a strong equity base relative to total assets. The company's cash position has improved significantly over the years, further enhancing financial stability.

Cash Flow

Netcall's cash flow performance is commendable with consistent growth in free cash flow, increasing from £3.9M in 2019 to £12.2M in 2024. The operating cash flow to net income ratio is 2.53, indicating strong cash-generating capability relative to net income. Free cash flow to net income ratio is robust at 2.08, emphasizing ample free cash flow generation. This highlights excellent cash management and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.96M	47.96M	39.06M	36.04M	30.46M	27.15M
Gross Profit	36.65M	36.65M	33.45M	30.27M	25.44M	24.53M
EBITDA	8.43M	8.43M	8.58M	6.34M	5.39M	4.17M
Net Income	4.05M	4.05M	5.85M	4.21M	2.40M	974.00K
Balance Sheet
Total Assets	88.25M	88.25M	77.04M	65.53M	56.98M	51.82M
Cash, Cash Equivalents and Short-Term Investments	27.16M	27.16M	34.01M	24.81M	17.61M	14.53M
Total Debt	1.04M	1.04M	481.00K	405.00K	4.17M	7.70M
Total Liabilities	44.26M	44.26M	36.54M	30.15M	29.56M	27.21M
Stockholders Equity	43.99M	43.99M	40.50M	35.38M	27.42M	24.61M
Cash Flow
Free Cash Flow	10.11M	10.11M	12.15M	8.81M	8.05M	2.93M
Operating Cash Flow	10.33M	10.33M	14.73M	11.56M	9.98M	5.68M
Investing Cash Flow	-15.66M	-15.66M	-4.21M	-2.74M	-1.94M	-2.75M
Financing Cash Flow	-1.56M	-1.56M	-1.26M	-1.68M	-4.93M	-1.16M

Netcall Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 111.00
• 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:NET, the sentiment is Negative. The current price of 111 is below the 20-day moving average (MA) of 111.55, below the 50-day MA of 116.31, and below the 200-day MA of 115.03, indicating a bearish trend. The MACD of -1.84 indicates Negative momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 35.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NET.

Netcall Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACSO	75 Outperform	£128.40M	17.40	5.30%	―	-3.95%	16.87%
DOTD	73 Outperform	£198.57M	17.75	11.31%	1.68%	6.27%	0.83%
APTD	72 Outperform	£161.29M	37.04	7.71%	1.87%	-6.63%	-7.88%
TRB	70 Outperform	£147.83M	18.30	15.34%	1.71%	3.48%	318.89%
AOM	68 Neutral	£162.82M	-814.29	-2.20%	―	31.86%	-115.22%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NET	61 Neutral	£187.53M	44.90	9.59%	0.81%	22.80%	-32.13%

Netcall Corporate Events

Netcall Director Transfers Shares Without Changing Total Holdings

Netcall announced a transfer of 246,000 ordinary shares by Michael Jackson, a Non-Executive Director, from his Self-Invested Personal Pension to his personal holding. This transaction, executed at 120 pence per share, leaves Mr. Jackson’s total beneficial interest unchanged at 1,091,450 shares, representing 0.65% of the company’s issued share capital. This move is part of regular director dealings and does not impact the company’s operations or market positioning.

The most recent analyst rating on (GB:NET) stock is a Buy with a £130.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.

Netcall Director Transfers Shares Without Impacting Holdings

Netcall announced a transfer of 420,000 ordinary shares by Michael Jackson, a Non-Executive Director, from his Self-Invested Personal Pension to his personal holding, with no change in his total beneficial interest. This transaction reflects internal share management and does not impact the company’s share capital or market positioning.

The most recent analyst rating on (GB:NET) stock is a Buy with a £130.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.

Netcall Reports Strong FY25 Growth Driven by Cloud and AI Adoption

Netcall has reported a strong financial performance for the fiscal year ending June 2025, with a 23% increase in revenue to £48.0m and a 17% rise in adjusted EBITDA to £9.8m. The company’s growth is driven by the success of its Liberty Cloud platform, which saw a 52% increase in Cloud Annual Contract Value, now making up 80% of total ACV. This growth is attributed to increased adoption of AI and automation, successful integration of acquisitions like Govtech and Parble, and a strong pipeline in the public sector. Netcall remains debt-free with a robust cash position, positioning it well for future growth.

The most recent analyst rating on (GB:NET) stock is a Buy with a £130.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.

Netcall PLC Issues New Shares Following Employee Option Exercise

Netcall PLC has announced the issuance and allotment of 551,175 new ordinary shares following the exercise of share options by its employees. These shares are set to be admitted to trading on AIM, increasing the total number of shares with voting rights to 166,769,897. This development reflects the company’s ongoing efforts to enhance its capital structure and maintain transparency with its stakeholders.

The most recent analyst rating on (GB:NET) stock is a Buy with a £130.00 price target. To see the full list of analyst forecasts on Netcall stock, see the GB:NET Stock Forecast page.