NTG Clarity Networks (NCI) AI Stock Analysis

• Market Cap: C$61.56M
• Dividend Yield: N/A
• Average Volume (3M): 125.83K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.46
• Revenue Growth: 62.61%
• EPS Growth: -10.60%
• Country: CA
• Employees: 400
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 47,354,103
• 10 Day Avg. Volume: 239,896
• 30 Day Avg. Volume: 125,830
• PEG Ratio: 0.02
• Price to Book (P/B): 5.65
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 44.38
• 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: C$3.23
• Price Target Upside: 148.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.25
• Revenue Forecast (FY): C$112.38M

• Rating: 65 Neutral
• Price Target: C$1.50 ▲(15.38% Upside)

The overall stock score of 65 reflects strong financial performance, particularly in revenue growth and profitability, despite cash flow challenges. The technical analysis indicates a bearish trend, while the valuation suggests the stock is undervalued. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and enhance product adoption, supporting long-term business sustainability.

Profitability

High return on equity indicates efficient use of shareholder funds, enhancing investor confidence and supporting future growth initiatives.

Leverage Position

Improved leverage position reduces financial risk, providing greater flexibility for strategic investments and resilience against economic downturns.

Negative Factors

Cash Flow Challenges

Negative cash flow indicates potential liquidity issues, which could hinder the company's ability to invest in growth opportunities and meet financial obligations.

Net Profit Margin Decline

Decreasing net profit margins suggest rising costs or pricing pressures, which could impact long-term profitability if not addressed.

Cash Generation Alignment

Misalignment between cash generation and reported profits may indicate inefficiencies in operations or financial management, affecting future cash sustainability.

NTG Clarity Networks Business Overview & Revenue Model

Company Description

NTG Clarity Networks Inc. provides telecommunications engineering, information technology, networking, and related software solutions worldwide. Its products include StageEM, an enterprise solution that covers project portfolio management, demand and capacity, analytic and dashboard, and decision-making using real-time data; Workflow Management solution, which enables organizations to design, deploy, execute, monitor, and analyze their business processes; Network Inventory Management solution that covers networks, services, and resources for organizations; and Partner Relationship Management solution, which covers the value chain of partnerships and enables vendors to manage their strategic partners. The company's products also include NTS Asset Management solution that tracks life-cycle of an inventory from acquisition to delivery to retirement; NTS Trouble Ticket Management, a module that manages customer and network trouble tickets and allows users to create their own type of trouble tickets; NTS Utility Billing solution, which manages utility billing needs; Mi-World, an m-Commerce application for mobile shopping; and Telco In A Box solution, a pre-integrated CRM, order management, fulfillment, and billing solution. In addition, the company offers VoWiFi, an app that enables voice in WiFi for smartphones and androids; Last Mile Delivery, a platform that manages delivery activities, such as order taking, fulfillment, and delivery; PROXBOX, an IoT solution that automates the update of inventory, manufacturing, and asset management over 3G cellular, WiFi, and ethernet; and end-to-end business solutions that enables business to be managed remotely through accessible dashboards. Further, it provides solution development, system integration, testing as a service, outsourcing, consulting, training, and smart cities/building services, as well as digital transformation and data migration services. The company was founded in 1992 and is based in Markham, Canada.

How the Company Makes Money

NTG Clarity Networks generates revenue primarily through the sale of its software solutions and consulting services. The company's revenue model includes licensing fees for its software products, which are typically sold on a subscription basis or as one-time licenses. Additionally, NCI earns income from professional services such as implementation, customization, and training for its clients. Key revenue streams also come from ongoing maintenance and support contracts. Significant partnerships with telecommunications companies and utility providers contribute to its earnings by facilitating the integration of NCI's solutions into their existing systems, thereby expanding its market reach and customer base.

NTG Clarity Networks Financial Statement Overview

Summary

NTG Clarity Networks demonstrates strong revenue growth and profitability with efficient operations. However, cash flow challenges and a low equity ratio present potential risks that need addressing to sustain growth and improve financial stability.

Income Statement

NTG Clarity Networks shows strong revenue growth with a 9.97% increase in TTM, indicating a positive trajectory. The gross profit margin of 36.56% and net profit margin of 11.05% reflect solid profitability, although slightly lower than the previous year. EBIT and EBITDA margins are healthy at 15.64% and 17.48%, respectively, suggesting efficient operations. However, the decline in net profit margin from the previous year suggests some pressure on profitability.

Balance Sheet

The company's debt-to-equity ratio improved to 0.39, indicating better leverage management compared to the previous year. Return on equity is strong at 59.03%, showcasing effective use of equity to generate profits. However, the equity ratio is low, with stockholders' equity comprising only 49.28% of total assets, which could pose a risk if asset values fluctuate.

Cash Flow

The cash flow situation is concerning, with negative operating cash flow and free cash flow in the TTM period. The free cash flow growth rate is significantly negative at -288.79%, indicating cash flow challenges. The operating cash flow to net income ratio is negative, suggesting that the company is not generating sufficient cash from operations relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.65M	56.13M	27.73M	17.65M	11.90M	7.91M
Gross Profit	27.41M	20.85M	8.80M	6.72M	6.59M	2.23M
EBITDA	12.79M	12.07M	2.52M	2.00M	1.81M	-1.32M
Net Income	7.55M	9.81M	1.71M	1.25M	1.37M	-1.63M
Balance Sheet
Total Assets	44.23M	28.29M	12.39M	8.17M	6.49M	3.17M
Cash, Cash Equivalents and Short-Term Investments	6.58M	4.95M	358.09K	725.02K	158.87K	145.22K
Total Debt	5.55M	6.75M	8.80M	7.96M	7.87M	8.45M
Total Liabilities	17.26M	15.69M	15.63M	14.94M	14.41M	15.71M
Stockholders Equity	26.97M	12.60M	-3.24M	-6.78M	-7.92M	-12.54M
Cash Flow
Free Cash Flow	-6.19M	1.61M	1.17M	1.06M	253.14K	952.73K
Operating Cash Flow	-4.70M	2.57M	1.86M	2.49M	1.80M	1.83M
Investing Cash Flow	-1.31M	-825.49K	-2.50M	-1.43M	-1.55M	-880.31K
Financing Cash Flow	7.24M	2.84M	275.06K	-496.65K	-239.50K	-838.57K

NTG Clarity Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.30
• 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 TSE:NCI, the sentiment is Negative. The current price of 1.3 is below the 20-day moving average (MA) of 1.35, below the 50-day MA of 1.42, and below the 200-day MA of 1.86, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 43.95 is Neutral, neither overbought nor oversold. The STOCH value of 44.68 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	65 Neutral	C$61.56M	7.67	40.79%	―	62.61%	-10.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ABXX	45 Neutral	C$61.56M	-2.34	-147.54%	―	-34.80%	-28.42%
MHUB	42 Neutral	C$90.34M	-13.78	-584.49%	―	-35.91%	20.44%
ONE	41 Neutral	C$73.62M	-78.16	-144.12%	―	-10.57%	-117.50%
NTAR	41 Neutral	C$33.24M	-6.73	―	―	-59.22%	83.08%

NTG Clarity Networks Corporate Events

NTG Clarity Secures $11.8M in New Orders and Renewals

NTG Clarity Networks Inc. announced it has secured new purchase orders and contract renewals totaling approximately $11.8 million CAD. These include $11.4 million from existing customers for software development services and $442,000 from a new customer for digital transformation services. The announcement highlights NTG’s successful land-and-expand model, which is fostering both new customer relationships and expanded commitments from existing clients, reinforcing the effectiveness of their delivery model and NTGapps.

The most recent analyst rating on (TSE:NCI) stock is a Hold with a C$1.50 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 Q3 2025 Financial Results

NTG Clarity Networks announced it will release its third-quarter financial results for 2025 on November 12, followed by an earnings call on November 13. This announcement is significant as it provides stakeholders with insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:NCI) stock is a Hold with a C$2.00 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 Participate in Planet MicroCap Showcase in Toronto

NTG Clarity Networks announced its participation in the Planet MicroCap Showcase in Toronto, where VP Adam Zaghloul will present and engage in investor meetings. This event is an opportunity for NTG Clarity to enhance its visibility and engage with potential investors, potentially impacting its market positioning and stakeholder engagement.

The most recent analyst rating on (TSE:NCI) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on NTG Clarity Networks stock, see the TSE:NCI Stock Forecast page.