NTG Clarity Networks (NCI) AI Stock Analysis

• Market Cap: C$98.39M
• Dividend Yield: N/A
• Average Volume (3M): 171.33K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.21
• Revenue Growth: 78.50%
• EPS Growth: 12.58%
• Country: CA
• Employees: 400
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 47,304,104
• 10 Day Avg. Volume: 106,712
• 30 Day Avg. Volume: 171,328
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: C$2.90
• Price Target Upside: 58.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: C$2.50 ▲(36.61% Upside)

NTG Clarity Networks' strong financial performance, particularly in profitability and revenue growth, is the most significant factor driving the score. The stock's valuation is attractive, suggesting it may be undervalued. Technical analysis indicates stability but with some bearish signals. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Market Position

NTG sees significant growth potential in the Saudi market due to its deep relationships in the region and growing profile.

Revenue Growth

Strong topline growth of 51% in Q2, along with improved gross margins, highlights the potential for NTG Clarity Networks.

Valuation

The stock trades at compelling valuations, considering the growth prospects of the business.

Negative Factors

Cash Flow

Free cash flow was below expectations due to elevated working capital burn, influenced by timing of major holidays and advance tax payments.

Margin Pressure

Investments in talent create short-term margin pressure.

Operating Expenses

Higher-than-expected operating expenses due to onboarding and training of new talent offset improved gross margins.

NTG Clarity Networks Business Overview & Revenue Model

Company Description

NTG Clarity Networks (NCI) is a telecommunications and IT solutions provider specializing in delivering network and business management software solutions, IT services, and consulting services. The company operates primarily in the telecommunications sector but also serves other industries with its software and professional services, focusing on enhancing operational efficiency and customer experiences.

How the Company Makes Money

NTG Clarity Networks generates revenue through the sale and licensing of its proprietary software products tailored for network and business management. The company also earns significant income from providing IT services, including system integration, consulting, and project management. Furthermore, NTG Clarity Networks engages in long-term contracts with telecommunications and enterprise clients, which contribute to a steady stream of service-based revenue. Partnerships with key industry players and a focus on expanding its customer base in various regions also play a crucial role in the company's earnings growth.

NTG Clarity Networks Financial Statement Overview

Summary

NTG Clarity Networks shows strong income statement performance with high profitability and revenue growth. The balance sheet has improved but still reflects past weaknesses due to negative equity. Cash flow is stable but has room for improvement.

Income Statement

NTG Clarity Networks has shown a strong improvement in its income statement metrics. The TTM (Trailing-Twelve-Months) data reveals a gross profit margin of 35.6% and a net profit margin of 15.3%, indicating excellent profitability. Revenue growth is robust, with a 14.1% increase from the previous period, highlighting solid performance and market demand. EBIT and EBITDA margins are also healthy at 20.7% and 20.8%, respectively, reflecting effective cost management and operational efficiency.

Balance Sheet

The company's balance sheet shows moderate stability. The debt-to-equity ratio is high due to negative shareholder equity in past years, but it has improved recently with a positive equity of CAD 14.9 million. The equity ratio stands at 48.2%, suggesting a balanced asset structure. Return on equity is promising at 65.8%, indicating significant returns for shareholders, although historical negative equity is a risk factor.

Cash Flow

Cash flow analysis reveals a mixed performance. The operating cash flow to net income ratio is 0.21, and the free cash flow to net income ratio is 0.10, suggesting that cash generation is lower than net earnings. However, free cash flow remains positive, and there is a notable improvement in free cash flow growth, indicating potential for future cash stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.07M	56.13M	27.73M	17.65M	11.90M	7.91M
Gross Profit	22.82M	20.85M	8.80M	6.72M	6.59M	2.23M
EBITDA	13.33M	12.07M	2.67M	2.00M	1.81M	-1.32M
Net Income	9.79M	9.81M	1.71M	1.25M	1.37M	-1.63M
Balance Sheet
Total Assets	30.86M	28.29M	12.39M	8.17M	6.49M	3.17M
Cash, Cash Equivalents and Short-Term Investments	4.65M	4.95M	358.09K	725.02K	158.87K	145.22K
Total Debt	6.47M	6.75M	8.80M	7.96M	7.87M	8.45M
Total Liabilities	15.98M	15.69M	15.63M	14.94M	14.41M	15.71M
Stockholders Equity	14.88M	12.60M	-3.24M	-6.78M	-7.92M	-12.54M
Cash Flow
Free Cash Flow	945.67K	1.61M	1.17M	1.06M	253.14K	952.73K
Operating Cash Flow	2.09M	2.57M	1.86M	2.49M	1.80M	1.83M
Investing Cash Flow	-1.04M	-825.49K	-2.50M	-1.43M	-1.55M	-880.31K
Financing Cash Flow	3.00M	2.84M	275.06K	-496.65K	-239.50K	-838.57K

NTG Clarity Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NCI, the sentiment is Negative. The current price of 1.83 is below the 20-day moving average (MA) of 2.10, below the 50-day MA of 2.17, and below the 200-day MA of 1.89, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 33.04 is Neutral, neither overbought nor oversold. The STOCH value of 42.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NCI.

NTG Clarity Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCI	74 Outperform	C$98.39M	9.29	84.34%	―	78.50%	12.58%
QIS	67 Neutral	C$51.55M	35.00	5.05%	―	0.10%	-18.29%
URL	62 Neutral	C$125.72M	94.06	-4.32%	―	16.94%	-112.50%
Sector *	61 Neutral	$36.05B	6.66	-10.61%	1.86%	8.68%	-8.81%
IMP	60 Neutral	C$186.64M	131.88	27.53%	―	156.62%	―
XTRA	54 Neutral	C$119.56M	―	-99.03%	―	29.22%	18.54%
MHUB	44 Neutral	C$40.30M	―	-525.13%	―	-34.26%	19.92%

NTG Clarity Networks Corporate Events

NTG Clarity to Present at Canaccord Genuity Growth Conference

NTG Clarity Networks Inc. announced its participation in the Canaccord Genuity 45th Annual Growth Conference in Boston, Massachusetts, on August 12-13, 2025. This event, which connects high-growth technology companies with institutional investors, will feature NTG Clarity’s formal investor presentation and opportunities for one-on-one meetings, potentially enhancing its visibility and investor relations in the technology sector.

The most recent analyst rating on (TSE:NCI) stock is a Buy with a C$3.25 price target. To see the full list of analyst forecasts on NTG Clarity Networks stock, see the TSE:NCI Stock Forecast page.

NTG Clarity to Present at Canaccord Genuity Growth Conference

NTG Clarity Networks Inc. announced its participation in the Canaccord Genuity 45th Annual Growth Conference in Boston, Massachusetts, on August 12-13, 2025. This event, which connects high-growth technology companies with institutional investors, will feature NTG Clarity’s formal investor presentation and opportunities for one-on-one meetings, potentially enhancing its visibility and investor relations.

The most recent analyst rating on (TSE:NCI) stock is a Buy with a C$3.25 price target. To see the full list of analyst forecasts on NTG Clarity Networks stock, see the TSE:NCI Stock Forecast page.

NTG Clarity Networks Secures C$9 Million in Brokered Private Placement

NTG Clarity Networks Inc. has successfully closed its brokered private placement, raising approximately C$9.0 million through the issuance of over 4 million units. The proceeds are intended to support the expansion of its digital transformation solutions and enhance working capital, enabling the company to pursue larger contracts and strategic opportunities, particularly in the Gulf region. This move is expected to strengthen NTG Clarity’s market position and operational stability, appealing to large enterprise clients.

The most recent analyst rating on (TSE:NCI) stock is a Buy with a C$3.25 price target. To see the full list of analyst forecasts on NTG Clarity Networks stock, see the TSE:NCI Stock Forecast page.

NTG Clarity Networks Launches C$10 Million Private Placement to Fuel Growth

NTG Clarity Networks Inc. has announced a brokered private placement offering of up to C$10.0 million, facilitated by Canaccord Genuity Corp. The funds raised will be used to expand the company’s digital transformation solutions and for general corporate purposes. The offering is available to purchasers in Canada, except Quebec, and certain other jurisdictions, with the closing expected on or about July 17, 2025. This move aims to strengthen NTG’s market position and support its growth strategy.

The most recent analyst rating on (TSE:NCI) stock is a Buy with a C$3.25 price target. To see the full list of analyst forecasts on NTG Clarity Networks stock, see the TSE:NCI Stock Forecast page.

NTG Clarity Networks Secures $11.2 Million in New Contracts and Renewals

NTG Clarity Networks has announced new purchase orders and contract renewals totaling approximately $11.2 million CAD. This includes $1.3 million in new offshore software development services, $282,000 from a new telecom client in Oman for NTGapps platform services, and $9.6 million in contract renewals and expansions. The new orders highlight NTG’s ability to scale efficiently and its growing presence in the Middle East, aligning with regional digitization initiatives. The increased first-year billing from a $22 million contract demonstrates accelerated ramp-up and expanded client reliance on NTG’s services.

The most recent analyst rating on (TSE:NCI) stock is a Buy with a C$3.25 price target. To see the full list of analyst forecasts on NTG Clarity Networks stock, see the TSE:NCI Stock Forecast page.

NTG Clarity Networks Achieves Record Q1 Revenue and Raises 2025 Guidance

NTG Clarity Networks reported a record revenue increase of 68% year-over-year in Q1 2025, driven by significant growth in offshore services and NTGapps. Despite a slight decline in net income due to strategic investments and tax provisions, the company raised its full-year revenue guidance to $78 million, reflecting confidence in continued growth. NTG is leveraging its offshore platform to deepen customer relationships and expand its client base through referrals, aiming to solidify its role in clients’ digital strategies.

The most recent analyst rating on (TSE:NCI) stock is a Buy with a C$3.25 price target. To see the full list of analyst forecasts on NTG Clarity Networks stock, see the TSE:NCI Stock Forecast page.

NTG Clarity Networks to Release Q1 2025 Financial Results

NTG Clarity Networks Inc. announced it will release its first-quarter financial results for 2025 on May 28, followed by an earnings call on May 29. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (TSE:NCI) stock is a Buy with a C$3.25 price target. To see the full list of analyst forecasts on NTG Clarity Networks stock, see the TSE:NCI Stock Forecast page.