NTG Clarity Networks (NCI) AI Stock Analysis

• Market Cap: C$55.40M
• Dividend Yield: N/A
• Average Volume (3M): 125.83K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.33
• 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$2.70
• Price Target Upside: 50.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.25
• Revenue Forecast (FY): C$112.38M

• Rating: 60 Neutral
• Price Target: C$1.50 ▼(-16.20% Downside)

The overall stock score of 60 reflects NTG Clarity Networks' strong financial performance, particularly in revenue growth and profitability, despite significant 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 do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability.

Profitability

Strong profitability margins suggest efficient operations and the ability to generate profits, which is crucial for long-term financial health.

Leverage Management

Improved leverage management enhances financial stability and reduces risk, supporting sustainable growth and investment capacity.

Negative Factors

Cash Flow Challenges

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

Equity Ratio

A low equity ratio suggests vulnerability to asset value fluctuations, which could impact financial stability and borrowing capacity.

Net Profit Margin Decline

A declining net profit margin indicates pressure on profitability, which could affect long-term earnings potential and investment appeal.

NTG Clarity Networks Business Overview & Revenue Model

Company Description

NTG Clarity Networks Inc. (NCI) is a technology company specializing in the development of solutions for telecommunications and utility industries. The company focuses on providing software solutions that enhance operational efficiency and improve customer engagement. NCI's core products include network management software, data analytics tools, and consulting services aimed at helping organizations optimize their network operations and enhance service delivery.

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 shows strong revenue growth and profitability with healthy margins. However, cash flow challenges and a low equity ratio present potential risks, necessitating improvements in cash flow management to sustain growth.

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	70.46M	56.13M	27.73M	17.65M	11.90M	7.91M
Gross Profit	25.76M	20.85M	8.80M	6.72M	6.59M	2.23M
EBITDA	12.32M	12.07M	2.52M	2.00M	1.81M	-1.32M
Net Income	7.78M	9.81M	1.71M	1.25M	1.37M	-1.63M
Balance Sheet
Total Assets	32.54M	28.29M	12.39M	8.17M	6.49M	3.17M
Cash, Cash Equivalents and Short-Term Investments	2.26M	4.95M	358.09K	725.02K	158.87K	145.22K
Total Debt	6.27M	6.75M	8.80M	7.96M	7.87M	8.45M
Total Liabilities	16.51M	15.69M	15.63M	14.94M	14.41M	15.71M
Stockholders Equity	16.04M	12.60M	-3.24M	-6.78M	-7.92M	-12.54M
Cash Flow
Free Cash Flow	-1.79M	1.61M	1.17M	1.06M	253.14K	952.73K
Operating Cash Flow	-744.29K	2.57M	1.86M	2.49M	1.80M	1.83M
Investing Cash Flow	-886.22K	-825.49K	-2.50M	-1.43M	-1.55M	-880.31K
Financing Cash Flow	3.48M	2.84M	275.06K	-496.65K	-239.50K	-838.57K

NTG Clarity Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.79
• 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 1.79 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.66, and below the 200-day MA of 1.93, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 74.42 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
QIS	67 Neutral	C$58.18M	39.30	3.37%	―	1.46%	-65.49%
URL	63 Neutral	C$126.60M	187.01	24.43%	―	20.62%	21.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NCI	60 Neutral	C$55.40M	6.72	40.79%	―	62.61%	-10.60%
XTRA	54 Neutral	C$170.28M	-13.21	-96.34%	―	-15.31%	2.93%
MHUB	49 Neutral	C$82.52M	-11.80	-892.25%	―	-40.52%	10.04%
IMP	47 Neutral	C$181.55M	111.35	-14.10%	―	48.18%	-401.19%

NTG Clarity Networks Corporate Events

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.

NTG Clarity Secures Strategic Frame Agreement in Saudi Arabia

NTG Clarity Networks Inc. has signed a three-year renewable Frame Agreement with a new government-affiliated IT customer in Saudi Arabia, allowing it to provide software development resources without a traditional RFP process. This agreement aligns with Saudi Arabia’s Vision 2030 economic development plan, positioning NTG to expand its presence in the region and potentially open doors to further opportunities in the public sector.

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 to Present at Smallcap Discoveries Conference

NTG Clarity Networks Inc. announced its participation in the Annual Smallcap Discoveries Conference in Vancouver, where Vice President Adam Zaghloul will present on the company’s growth in the Middle Eastern digital transformation sector. The conference aims to strengthen Canada’s microcap ecosystem by fostering connections between investors and growth companies, enhancing capital access, and supporting innovation and entrepreneurship.

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 Secures $10.9 Million in New Orders and Renewals

NTG Clarity Networks has announced new purchase orders and contract renewals totaling approximately $10.9 million CAD. This includes $1.4 million from new IT services customers and $9.5 million from existing contracts and expansions. The company’s ‘land-and-expand’ strategy is proving successful, with new customers opening doors to long-term opportunities and existing clients broadening their commitments, reflecting NTG’s value delivery and trust. The announcement highlights NTG’s growing momentum in the industry and its strategic focus on expanding its customer base and deepening existing relationships.

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 Reports Strong Q2 Growth Amid FX Challenges

NTG Clarity Networks reported a 51% year-over-year revenue growth for Q2 2025, driven by significant increases in its high-margin segments, particularly offshore services and NTGapps. Despite facing foreign exchange challenges due to a weakening US dollar, the company maintained robust underlying performance and reaffirmed its full-year guidance. NTG Clarity successfully closed an equity financing deal, securing $8.2 million to support larger contracts and growth initiatives, including geographic expansion and potential M&A opportunities, thereby strengthening its industry positioning and future growth prospects.

The most recent analyst rating on (TSE:NCI) stock is a Buy with a C$2.50 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 Q2 2025 Financial Results

NTG Clarity Networks Inc. announced it will release its second-quarter financial results for 2025 on August 27, with an earnings call scheduled for August 28. 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 relations.

The most recent analyst rating on (TSE:NCI) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on NTG Clarity Networks stock, see the TSE:NCI Stock Forecast page.