Netcall (NET) AI Stock Analysis

• Market Cap: £190.12M
• Dividend Yield: 0.78%
• Average Volume (3M): 137.26K
• Price to Earnings (P/E): 36.5
• Beta (1Y): 0.56
• Revenue Growth: 15.40%
• EPS Growth: -6.59%
• Country: UK
• Employees: 283
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 166,769,900
• 10 Day Avg. Volume: 127,319
• 30 Day Avg. Volume: 137,264
• PEG Ratio: 0.57
• Price to Book (P/B): 4.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.10
• 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: £142.50
• Price Target Upside: 25.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: 135.00p ▲(18.42%Upside)

Netcall demonstrates strong financial performance and stable corporate governance, which are significant strengths. However, technical indicators suggest the stock is overbought, and a high P/E ratio implies potential overvaluation. These factors collectively result in a moderate overall stock score.

Netcall Business Overview & Revenue Model

Company Description

Netcall plc engages in the design, development, sale, and support of software products and services in the United Kingdom and internationally. It offers Liberty Create, a low-code development platform for producing applications that automate and transform the business and customer experience; Liberty RPA, an AI-powered robotic process automation; Liberty Connect, a cloud messaging and bot platform; and Liberty Converse, an omnichannel contact center and customer engagement management solution. The company also provides consultancy, implementation, and training services. Netcall plc was incorporated in 1984 and is headquartered in Bedford, the United Kingdom.

How the Company Makes Money

Netcall generates revenue primarily through the sale and licensing of its software products and solutions. The company's key revenue streams include software subscriptions, professional services, and maintenance and support fees. Netcall's low-code platform and automation solutions are sold on a subscription basis, providing a recurring revenue model. Additionally, the company offers implementation and consulting services that complement its software products. Netcall's partnerships with various technology providers and its focus on sectors such as healthcare, public services, and financial services contribute significantly to its earnings.

Netcall Financial Statement Overview

Summary

Netcall exhibits strong financial health with consistent revenue growth, improved profitability, and robust cash flow generation. The company's solid balance sheet, characterized by low leverage and a strong equity base, bolsters its financial stability.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	43.18M	39.06M	36.04M	30.46M	27.15M	25.11M
Gross Profit	33.48M	33.45M	30.27M	25.44M	24.53M	22.18M
EBITDA	8.97M	8.58M	6.34M	5.39M	4.17M	3.75M
Net Income	5.15M	5.85M	4.21M	2.40M	974.00K	487.00K
Balance Sheet
Total Assets	82.33M	77.04M	65.53M	56.98M	51.82M	50.35M
Cash, Cash Equivalents and Short-Term Investments	21.97M	34.01M	24.81M	17.61M	14.53M	12.71M
Total Debt	1.11M	481.00K	405.00K	4.17M	7.70M	7.89M
Total Liabilities	40.05M	36.54M	30.15M	29.56M	27.21M	27.47M
Stockholders Equity	42.28M	40.50M	35.38M	27.42M	24.61M	22.88M
Cash Flow
Free Cash Flow	11.05M	12.15M	8.81M	8.05M	2.93M	7.56M
Operating Cash Flow	11.29M	14.73M	11.56M	9.98M	5.68M	9.42M
Investing Cash Flow	-16.56M	-4.21M	-2.74M	-1.94M	-2.75M	-3.54M
Financing Cash Flow	-1.29M	-1.26M	-1.68M	-4.93M	-1.16M	-925.00K

Netcall Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 114.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 114 is below the 20-day moving average (MA) of 115.65, above the 50-day MA of 112.79, and above the 200-day MA of 106.40, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 25.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:NET.

Netcall Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOTD	78 Outperform	£236.27M	20.87	11.66%	1.43%	11.38%	-8.44%
IDOX	73 Outperform	£294.57M	47.15	8.06%	1.08%	10.93%	12.30%
NET	72 Outperform	£190.12M	36.54	12.87%	0.78%	15.40%	-6.59%
APTD	68 Neutral	£158.87M	32.76	8.42%	1.25%	-6.21%	21.39%
ACSO	65 Neutral	£167.83M	24.51	4.56%	―	-0.90%	15.22%
Sector *	63 Neutral	$34.60B	5.43	-11.64%	1.84%	5.30%	-18.55%
SAAS	―	£159.43M	335.48	-2.78%	0.90%	―	―

Netcall Corporate Events

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.