NTG Clarity Networks (NCI) AI Stock Analysis

• Market Cap: C$69.10M
• Dividend Yield: N/A
• Average Volume (3M): 130.26K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.37
• Revenue Growth: 102.42%
• EPS Growth: 230.27%
• Country: CA
• Employees: 400
• Sector: Technology
• Sector Strength: 62
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 42,393,658
• 10 Day Avg. Volume: 240,931
• 30 Day Avg. Volume: 130,256
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.52
• Price to Cash Flow (P/CF): 31.50
• P/FCF Ratio: 49.40
• 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$3.00
• Price Target Upside: 87.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

NTG Clarity Networks exhibits strong financial performance with impressive revenue and profit growth, despite some concerns regarding leverage. The company's valuation appears attractive with a low P/E ratio, indicating potential undervaluation. Positive sentiment from the recent earnings call and strong corporate events further support the company's growth outlook. However, mixed technical signals suggest caution in the short term.

Positive Factors

Financial Performance

NTG Clarity Networks reported a strong adjusted EBITDA beat, with revenue slightly above forecast and up 109% year over year.

Revenue Growth

The company's revenue for the year was above expectations, driven by significant growth in Saudi Arabia.

Strategic Expansion

NTG Clarity Networks is expanding its capacity, particularly in its Egypt facility and sales team in Saudi Arabia, to meet increasing demand from larger contracts.

Negative Factors

EBITDA Margins

Adjusted EBITDA margins for 2025 are expected to be lighter than anticipated, ranging between 16-20% compared to the expected 20.7%.

Financial Valuation

The company is valued at 6.5x EV/EBITDA for 2026, and the target remains at $3.25 per share, maintaining a BUY rating.

Target Price

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 (NCI) is a global provider of telecommunications engineering, information technology, networking, and related software solutions. The company serves various sectors, including telecommunications, utilities, and government, offering a range of products and services designed to improve network efficiency and reduce operational costs. NTG Clarity Networks specializes in providing innovative solutions for network management, software development, and systems integration to help clients achieve their digital transformation goals.

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 has demonstrated strong growth in profitability and revenue recently, with improved net and gross profit margins. However, the company faces challenges in cash flow management and has a history of financial instability.

Income Statement

NTG Clarity Networks shows strong growth with a remarkable increase in revenue from previous years. The Gross Profit Margin for TTM stands at approximately 32.9%, indicating efficient cost management. The company also exhibits a robust Net Profit Margin of about 14.8% for TTM, reflecting profitability improvements. EBIT and EBITDA margins are healthy, suggesting operational efficiency. However, these positive trends are recent, as past years showed lower profitability.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio, with substantial total debt but improved equity position in TTM. Return on Equity is strong at 75.7% for TTM, but the negative equity in previous years indicates past financial struggles. The equity ratio in TTM is approximately 33.7%, highlighting a shift to a more stable capital structure.

Cash Flow

Operating cash flow remains positive, but free cash flow is negative in TTM due to capital expenditures, posing liquidity concerns. The Operating Cash Flow to Net Income Ratio is 0.15 in TTM, demonstrating less-than-ideal cash conversion efficiency, while past years showed better free cash flow results. Improvement in cash flow management is necessary for sustaining growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
47.14M	27.73M	17.65M	11.90M	7.91M	8.63M
	Gross Profit
15.50M	9.22M	6.72M	6.59M	2.23M	2.25M
	EBIT
6.66M	2.60M	2.25M	2.60M	-1.16M	-4.64M
	EBITDA
6.80M	2.52M	2.00M	1.81M	-1.32M	-7.45M
	Net Income Common Stockholders
6.99M	1.71M	1.25M	1.37M	-1.63M	-8.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
98.69K	358.09K	725.02K	158.87K	145.22K	31.07K
	Total Assets
7.90M	12.39M	8.17M	6.49M	3.17M	2.77M
	Total Debt
7.24M	8.80M	7.96M	7.87M	8.45M	7.11M
	Net Debt
7.14M	8.45M	7.23M	7.71M	8.30M	7.07M
	Total Liabilities
11.23M	15.63M	14.94M	14.41M	15.71M	14.87M
	Stockholders Equity
-3.33M	-3.24M	-6.78M	-7.92M	-12.54M	-12.10M
Cash Flow		Free Cash Flow
-363.93K	1.17M	1.06M	253.14K	952.73K	-5.31K
	Operating Cash Flow
1.05M	1.86M	2.49M	1.80M	1.83M	6.13K
	Investing Cash Flow
-1.57M	-2.50M	-1.43M	-1.55M	-880.31K	-11.44K
	Financing Cash Flow
5.35M	275.06K	-496.65K	-239.50K	-838.57K	-62.32K

NTG Clarity Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 1.6 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.80, and above the 200-day MA of 1.48, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 46.22 is Neutral, neither overbought nor oversold. The STOCH value of 17.47 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NCI	80 Outperform	C$69.10M	8.59	210.50%	―	102.42%	230.27%
IQ	68 Neutral	C$10.02M	27.20	4.63%	―	-2.75%	-89.95%
BLN	62 Neutral	C$560.36M	―	-14.10%	―	31.68%	67.90%
Sector *	59 Neutral	$10.72B	10.22	-6.67%	3.02%	7.42%	-11.38%
CMI	46 Neutral	C$40.14M	24.42	-4.55%	5.26%	-41.82%	-149.06%

NTG Clarity Networks Corporate Events

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.

Spark’s Take on TSE:NCI Stock

According to Spark, TipRanks’ AI Analyst, TSE:NCI is a Outperform.

NTG Clarity Networks scores well due to strong technical indicators and positive earnings call sentiment. Financial performance is improving, but challenges remain in cash flow management. Recent corporate events further support growth prospects.

To see Spark’s full report on TSE:NCI stock, click here.

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.

Spark’s Take on TSE:NCI Stock

According to Spark, TipRanks’ AI Analyst, TSE:NCI is a Outperform.

NTG Clarity Networks scores well due to strong technical indicators and positive earnings call sentiment. Financial performance is improving, but challenges remain in cash flow management. Recent corporate events further support growth prospects.

To see Spark’s full report on TSE:NCI stock, click here.

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.

NTG Clarity Networks Named Top 50 TSX Venture Performer

NTG Clarity Networks Inc. has been recognized as one of the top 50 performers on the TSX Venture Exchange, highlighting their market capitalization growth, share price appreciation, and trading value. This achievement reflects the company’s strategic vision and dedication, aligning with market trends to drive growth and profitability, and positions NTG Clarity to sustain its success in the future.

NTG Clarity Secures $14.6M in New Contracts, Boosting Growth

NTG Clarity Networks has secured new purchase orders and contracts worth approximately $14.6 million CAD from existing clients, reinforcing its strong market position. The company is leveraging opportunities from Saudi Arabia’s Vision 2030 plan, leading to increased renewals and new work, boosting their backlog to $105 million while enhancing client trust and accelerating growth.