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NTG Clarity Networks Inc (TSE:NCI)
:NCI

NTG Clarity Networks (NCI) AI Stock Analysis

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TSE:NCI

NTG Clarity Networks

(NCI)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
C$1.50
▼(-16.20% Downside)
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.

NTG Clarity Networks (NCI) vs. iShares MSCI Canada ETF (EWC)

NTG Clarity Networks Business Overview & Revenue Model

Company DescriptionNTG 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 MoneyNTG 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 Earnings Call Summary

Earnings Call Date:Nov 12, 2024
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call highlights significant financial growth and strategic achievements, including record revenue and net income, while acknowledging increased operating expenses and receivables due to expansion efforts. The overall sentiment is optimistic, driven by strong market positioning and future growth prospects in Saudi Arabia.
Q3-2024 Updates
Positive Updates
Record Revenue Growth
Q3 2024 marked the eighth consecutive quarter of record-setting revenue, with top-line revenue up 109% year-over-year to $14.7 million. Year-to-date revenue increased 100% to $38.9 million.
Significant Net Income Increase
Net income for Q3 rose 303% to $2.1 million, and year-to-date net income increased 272% to $6.9 million.
Largest Contract Win
Secured a $53 million 3-year contract, contributing to a total backlog of $83.5 million as of September 30, 2024.
Improved Financial Metrics
Adjusted EBITDA for Q3 increased 140% to $3.2 million, with an adjusted EBITDA margin of 22%, up from 19% the previous year.
Strong Cash Position
Ended Q3 with $5.4 million in cash, the highest in the company's history, due to positive operational cash flow and a successful LIFE Offering.
Negative Updates
Increase in Operating Expenses
Operating expenses rose to 18% of revenue due to investments in new office space, employee hiring, and training to support growth.
Receivables Increase
Receivables increased by 150% due to rapid top-line growth, although the company reported strong collections post-Q3.
Company Guidance
During the third quarter 2024 earnings call for NTG Clarity Networks Inc., several key financial metrics and guidance updates were highlighted. The company reported its eighth consecutive quarter of record-setting revenue, with a 109% increase to $14.7 million compared to the previous year, and a year-to-date revenue increase of 100% to $38.9 million. Net income also reached new heights, rising 303% to $2.1 million for the quarter and 272% year-to-date to $6.9 million. Additionally, NTG Clarity introduced adjusted EBITDA as a new metric, which grew by 140% to $3.2 million, resulting in a 22% adjusted EBITDA margin. A major highlight was a $53 million, three-year contract, contributing to a backlog of $83.5 million in work on hand. The company reaffirmed its full-year guidance of $55 million in revenue and a 14% net income margin for 2024, reflecting a recent increase from previous estimates. Despite the impressive growth, NTG Clarity emphasized continued investments in staffing and infrastructure to sustain its trajectory, particularly in the fast-growing Saudi Arabian market where 97% of its revenue is concentrated.

NTG Clarity Networks Financial Statement Overview

Summary
Income Statement
75
Positive
Balance Sheet
65
Positive
Cash Flow
55
Neutral
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

NTG Clarity Networks Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.79
Price Trends
50DMA
1.54
Negative
100DMA
1.74
Negative
200DMA
1.90
Negative
Market Momentum
MACD
-0.04
Negative
RSI
40.77
Neutral
STOCH
8.48
Positive
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 1.37, above the 50-day MA of 1.54, and below the 200-day MA of 1.90, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 40.77 is Neutral, neither overbought nor oversold. The STOCH value of 8.48 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
C$63.45M7.6140.79%62.61%-10.60%
62
Neutral
C$58.55M58.033.37%1.46%-65.49%
55
Neutral
C$81.70M-11.15-892.25%-40.52%10.04%
49
Neutral
C$61.56M-2.34-147.54%-34.80%-28.42%
49
Neutral
C$32.13M-6.28-59.22%83.08%
41
Neutral
C$63.88M-65.52-144.12%-10.57%-117.50%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NCI
NTG Clarity Networks
1.29
-0.20
-13.42%
TSE:ABXX
Abaxx Technologies Inc
4.08
0.00
0.00%
TSE:ONE
01 Communique Laboratory Inc.
0.57
0.38
200.00%
TSE:QIS
Quorum Information Technologies
0.80
-0.12
-13.04%
TSE:NTAR
NexTech AR Solutions
0.14
0.10
250.00%
TSE:MHUB
Minehub Technologies
0.86
0.58
207.14%

NTG Clarity Networks Corporate Events

Financial Disclosures
NTG Clarity Networks to Release Q3 2025 Financial Results
Neutral
Nov 7, 2025

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.

Business Operations and Strategy
NTG Clarity Networks to Participate in Planet MicroCap Showcase in Toronto
Neutral
Oct 14, 2025

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.

Business Operations and Strategy
NTG Clarity Secures Strategic Frame Agreement in Saudi Arabia
Positive
Sep 29, 2025

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.

Business Operations and Strategy
NTG Clarity to Present at Smallcap Discoveries Conference
Neutral
Sep 17, 2025

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.

Business Operations and Strategy
NTG Clarity Secures $10.9 Million in New Orders and Renewals
Positive
Sep 9, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 11, 2025