NTG Clarity Networks (NCI) AI Stock Analysis

• Market Cap: C$87.31M
• Dividend Yield: N/A
• Average Volume (3M): 202.40K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.23
• Revenue Growth: 92.08%
• EPS Growth: 100.09%
• Country: CA
• Employees: 400
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 43,011,257
• 10 Day Avg. Volume: 235,084
• 30 Day Avg. Volume: 202,397
• PEG Ratio: -2.22
• Price to Book (P/B): 5.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 92.98
• 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$3.30
• Price Target Upside: 55.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: C$2.50 ▲(17.92%Upside)

NTG Clarity Networks shows strong financial performance, particularly in profitability and recent balance sheet improvements, contributing positively to the score. Corporate events have reinforced growth prospects. However, technical indicators show neutral to bearish sentiment, slightly offsetting the positive financial outlook.

Positive Factors

Contract Wins

The company announced $11.2M CAD in new purchase orders and contract renewals, which enhances the prospect of surpassing its revenue guide.

Customer Satisfaction

High customer satisfaction is driving contract momentum, with a 90% customer retention rate and 54% of clients returning with larger service contracts.

Market Expansion

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

Negative Factors

Expense Management

The company's adjusted EBITDA was lower than expected due to increased selling, marketing, and general expenses.

Margin Pressure

Investments in talent create short-term margin pressure.

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 makes money through a diversified revenue model that includes the sale of proprietary software solutions, professional services, and managed services. The company's key revenue streams come from licensing its software products, which are designed to optimize network operations and enhance service delivery for telecommunications providers. Additionally, NTG Clarity Networks generates income by offering consulting and implementation services to assist clients in deploying and managing complex network systems. Managed services and support contracts also provide a steady source of recurring revenue. Significant partnerships with major telecom operators and technology providers further contribute to the company's earnings by expanding its market reach and facilitating joint solution development.

NTG Clarity Networks Financial Statement Overview

Summary

NTG Clarity Networks demonstrates strong income statement metrics with significant revenue and profit growth. Despite previous negative equity, recent balance sheet improvements and positive cash flow trends enhance its financial outlook.

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

NTG Clarity Networks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.12
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NCI, the sentiment is Positive. The current price of 2.12 is below the 20-day moving average (MA) of 2.25, below the 50-day MA of 2.33, and above the 200-day MA of 1.75, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 16.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	70 Outperform	C$87.31M	9.07	135.14%	―	92.08%	100.09%
QIS	67 Neutral	C$55.23M	37.50	5.09%	―	-0.92%	-23.37%
IMP	65 Neutral	C$164.66M	52.50	59.35%	―	253.50%	―
Sector *	63 Neutral	$34.16B	5.47	-11.67%	1.85%	5.30%	-18.30%
URL	59 Neutral	C$109.90M	94.06	-4.32%	―	16.94%	-112.50%
MHUB	49 Neutral	C$37.72M	―	-525.13%	―	-34.26%	19.92%
XTRA	47 Neutral	C$86.09M	―	-99.03%	―	29.22%	18.54%

NTG Clarity Networks Corporate Events

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.

NTG Clarity Secures $12.5 Million in New Contracts and Renewals

NTG Clarity Networks Inc. has announced new purchase orders and contract renewals valued at approximately $12.5 million CAD, indicating strong client retention and expansion capabilities. The company’s strategic focus on referral-driven sales and its NTGapps platform has resulted in significant contract renewals and new work, aligning with its 2025 revenue guidance of $75 million, and showcasing its growing influence in digital transformation 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 Secures $11.1 Million in New Software Development Orders

NTG Clarity Networks has announced the receipt of three purchase orders valued at $11.1 million for software development services, marking a significant increase in service levels under a previously announced $22 million agreement. This growth reflects the company’s expanding role in digital transformation projects, particularly in alignment with Saudi Arabia’s Vision 2030, and underscores the increasing demand for NTG’s services, which is driving accelerated growth for both the company and its partners.