NTG Clarity Networks (NCI) AI Stock Analysis

• Market Cap: C$98.65M
• Dividend Yield: N/A
• Average Volume (3M): 260.76K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.16
• Revenue Growth: 92.08%
• EPS Growth: 100.09%
• Country: CA
• Employees: 400
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 42,891,260
• 10 Day Avg. Volume: 266,289
• 30 Day Avg. Volume: 260,756
• PEG Ratio: 0.26
• Price to Book (P/B): 8.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 69.79
• 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: 43.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: C$3.00 ▲(30.43%Upside)

NTG Clarity Networks scores highly due to strong technical indicators and positive corporate events which reinforce its growth trajectory. Financial performance is solid but offset by high leverage. The valuation remains attractive, suggesting potential for appreciation.

Positive Factors

Customer Retention

High customer satisfaction is evident with a 90% customer retention rate and 54% of clients returning with larger service contracts.

Financial Performance

NTG Clarity Networks reported a strong 68% topline growth and a significant revenue beat.

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

Operating Expenses

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

Target Price Adjustment

The target price was slightly reduced due to the timing of corporate taxes and working capital movements.

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 exhibits strong financial performance with significant revenue and profit growth, robust margins, and improved equity position. However, a high debt-to-equity ratio remains a concern that needs addressing for long-term stability.

Income Statement

NTG Clarity Networks has demonstrated significant revenue growth, with a strong gross profit margin of 37.1% and an impressive net profit margin of 17.5% in the latest annual report. The EBIT and EBITDA margins are also robust at 22.0% and 21.5%, respectively, indicating strong operational efficiency. Consistent revenue and profit growth over the years suggest a successful growth trajectory.

Balance Sheet

The balance sheet shows improvement with positive stockholders' equity for the first time in recent years, reflecting better financial health. However, the debt-to-equity ratio remains high at 0.54, indicating reliance on debt. The equity ratio stands at 44.5%, suggesting moderate financial stability. While progress is evident, the company still faces potential risks due to leverage.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate and a healthy operating cash flow to net income ratio of 2.6. The company has managed to improve its free cash flow position, enhancing liquidity. However, the free cash flow to net income ratio suggests room for improvement in translating profits into cash flow.

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
	EBIT
12.34M	2.60M	2.25M	2.60M	-1.16M
	EBITDA
12.07M	2.67M	2.00M	1.81M	-1.32M
	Net Income Common Stockholders
9.81M	1.71M	1.25M	1.37M	-1.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.95M	358.09K	725.02K	158.87K	145.22K
	Total Assets
28.29M	12.39M	8.17M	6.49M	3.17M
	Total Debt
6.75M	8.80M	7.96M	7.87M	8.45M
	Net Debt
1.80M	8.45M	7.23M	7.71M	8.30M
	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: Neutral
• Last Price: 2.30
• 50DMA: Positive
• 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 Neutral. The current price of 2.3 is below the 20-day moving average (MA) of 2.49, above the 50-day MA of 2.04, and above the 200-day MA of 1.67, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 15.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	81 Outperform	C$98.65M	9.84	135.14%	―	92.08%	100.09%
QIS	70 Outperform	C$62.57M	42.00	5.09%	―	-0.92%	-23.37%
URL	67 Neutral	C$84.40M	94.06	-4.32%	―	10.71%	―
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
MHUB	57 Neutral	C$38.57M	―	-244.21%	―	51.52%	50.73%
IMP	55 Neutral	C$137.36M	37.48	59.35%	―	253.50%	―
XTRA	51 Neutral	C$95.02M	―	-99.03%	―	29.22%	18.54%

NTG Clarity Networks Corporate Events

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.

NTG Clarity Networks Achieves Record 2024 Financial Results, Eyes Continued Growth in 2025

NTG Clarity Networks Inc. reported record financial results for 2024, with revenue doubling to $56.1 million and net income increasing by 326% to $9.9 million. The company’s strong performance was driven by high customer retention, expanded services, and a growing customer base, supported by strategic investments and favorable market conditions. Looking ahead, NTG Clarity plans to continue its growth trajectory in 2025, with expected revenue of $75 million and a focus on strategic investments to support long-term growth.

NTG Clarity Networks to Release 2024 Financial Results

NTG Clarity Networks Inc. announced it will release its fourth quarter and year-end financial results for 2024 on April 15, 2025, followed by an earnings call on April 16. 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.

NTG Clarity Networks Projects Strong Growth for 2025

NTG Clarity Networks has announced its 2025 financial guidance, projecting revenues of approximately $75 million and an adjusted EBITDA margin between 16% and 20%. The company attributes its positive outlook to a growing backlog, strong customer demand, and expanded engagements with existing clients. NTG has also shifted its financial reporting metrics to focus on adjusted EBITDA, which better reflects its core business performance by excluding foreign exchange impacts. This strategic move aligns with NTG’s growth strategy, which is gaining traction across key customer segments and benefiting from digital transformation trends.