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NowVertical Group Inc (TSE:NOW)
:NOW

NowVertical Group Inc (NOW) AI Stock Analysis

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NowVertical Group Inc

(NOW)

62Neutral
NowVertical Group Inc. shows strong potential with improvements in revenue growth and EBITDA, coupled with strategic corporate events. However, high leverage and historical profitability issues weigh on the score, along with the need for diversification in client and geographic revenue sources.

NowVertical Group Inc (NOW) vs. S&P 500 (SPY)

NowVertical Group Inc Business Overview & Revenue Model

Company DescriptionNowVertical Group Inc (NOW) is a vertically integrated technology company specializing in big data analytics and artificial intelligence solutions. The company operates across various sectors, including finance, healthcare, marketing, and government, providing tailored data-driven insights and analytics tools to help organizations optimize their operations and decision-making processes. NOW's core products and services include advanced analytics platforms, consulting services, and industry-specific data solutions designed to enhance business intelligence and operational efficiency for its clients.
How the Company Makes MoneyNowVertical Group Inc makes money through a diversified revenue model that includes the sale of its proprietary analytics platforms and software solutions, subscription-based services, and consulting fees. The company generates income by providing customized data analytics tools and platforms to businesses across multiple industries, which are often sold as software-as-a-service (SaaS) offerings. In addition, NOW earns revenue from professional services, including consulting and implementation support, where they work closely with clients to integrate and optimize their analytics solutions. The company also benefits from strategic partnerships and collaborations with other technology providers and industry leaders, which help expand its market reach and enhance its product offerings.

NowVertical Group Inc Financial Statement Overview

Summary
NowVertical Group Inc. shows promising revenue growth and recent improvements in cash flow generation. However, challenges remain with historical profitability issues and high leverage, indicating a company in transition towards better financial health.
Income Statement
58
Neutral
NowVertical Group Inc. has shown substantial revenue growth over the past few years, which is a positive indicator. However, their net profit margin remains concerning, with negative figures in previous years turning slightly positive only recently. The gross profit margin is decent, but the company struggles with consistent profitability as indicated by fluctuating EBIT and EBITDA margins.
Balance Sheet
45
Neutral
The company has a high debt-to-equity ratio, indicating significant leverage which could pose financial risk. Despite this, the equity ratio has been improving, reflecting a gradual strengthening of financial stability. However, the negative equity in previous years is a red flag that needs addressing.
Cash Flow
62
Positive
Positive free cash flow in the latest year is a strong point, showing improvement in cash management. The operating cash flow has turned positive, enhancing the company's ability to generate cash from operations. However, the free cash flow has been volatile, pointing towards inconsistent cash management in previous years.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
46.87M51.70M27.01M4.11M617.07K
Gross Profit
23.06M26.64M11.58M2.90M545.96K
EBIT
4.94M-65.28K-9.06M-7.69M
EBITDA
8.47M2.91M-5.43M-13.17M-468.10K
Net Income Common Stockholders
1.59M-5.93M-9.55M-7.92M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.60M3.14M4.29M11.61M1.60M
Total Assets
43.86M44.85M34.17M26.88M6.80M
Total Debt
13.79M19.67M16.53M1.81M4.96M
Net Debt
11.22M16.89M12.72M-9.80M3.36M
Total Liabilities
42.01M47.50M32.35M13.16M6.02M
Stockholders Equity
1.86M-2.65M1.82M13.72M775.64K
Cash FlowFree Cash Flow
2.76M-5.17M-5.08M-710.90K
Operating Cash Flow
2.84M-5.10M-4.87M-710.90K
Investing Cash Flow
2.37M1.15M-10.81M5.72M
Financing Cash Flow
-5.53M2.19M10.72M18.64M400.00

NowVertical Group Inc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.56
Price Trends
50DMA
0.46
Positive
100DMA
0.43
Positive
200DMA
0.30
Positive
Market Momentum
MACD
0.02
Positive
RSI
57.58
Neutral
STOCH
84.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NOW, the sentiment is Positive. The current price of 0.56 is above the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.46, and above the 200-day MA of 0.30, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 84.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NOW.

NowVertical Group Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSDSG
80
Outperform
$12.58B64.8110.92%16.07%25.71%
TSMDA
75
Outperform
C$3.26B40.537.09%33.74%61.09%
72
Outperform
$1.32B15.5514.76%4.27%8.11%15.83%
TSCSU
71
Outperform
C$103.60B103.4530.90%0.11%21.56%31.90%
TSKXS
68
Neutral
C$5.08B157.81-0.10%14.85%-105.25%
TSNOW
62
Neutral
C$51.73M21.48-130.86%-7.88%
59
Neutral
$10.74B10.21-6.69%3.04%7.44%-10.92%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:NOW
NowVertical Group Inc
0.55
0.31
129.17%
TSE:ENGH
Enghouse Systems
24.85
-4.02
-13.93%
TSE:DSG
The Descartes Systems Group
146.19
17.39
13.50%
TSE:KXS
Kinaxis Inc
180.85
30.64
20.40%
TSE:CSU
Constellation Software
4,883.41
1,253.15
34.52%
TSE:MDA
MDA Ltd
26.77
12.04
81.74%

NowVertical Group Inc Earnings Call Summary

Earnings Call Date: Apr 1, 2025 | % Change Since: 0.00% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong positive performance with significant improvements in EBITDA, revenue growth, and operational income. Despite existing challenges in integration and geographic concentration, the company's financial health and strategic account retention indicate a promising outlook.
Highlights
EBITDA Milestone
NowVertical achieved an EBITDA of USD 2 million for Q3 2024, marking a 19% EBITDA margin, best in class in the industry.
Revenue Growth
Revenue grew by 9% year-over-year, reaching USD 10.7 million in Q3 2024.
Operational Income Improvement
Income from operations increased by 87% year-over-year, achieving a USD 1.6 million gain in Q3 2024.
Debt Reduction Success
Acquisition-related liabilities were reduced from USD 13.9 million to USD 8.5 million, achieving potential cash savings of USD 7.4 million.
Client Retention
100% renewal rate of strategic accounts in Q3 2024, with the addition of 5 new enterprise clients in Latin America.
Lowlights
Complex Integration Processes
The integration of Latin American operations is ongoing, with completion still 20-25% away.
Revenue Concentration Challenges
60% of revenue is generated from top 30 clients, highlighting potential risks in client concentration.
Geographic Revenue Distribution
70% of revenue is concentrated in Latin America, indicating a reliance on a single geographic market.
Company Guidance
In the Q3 2024 earnings call for NOW.V, the executives reported a significant improvement in financial metrics, surpassing their own expectations. The company achieved an EBITDA of $2 million, marking a 19% margin against a revenue of $10.7 million for the quarter. Year-over-year, they observed a 9% revenue growth, with operating income improving by 87% and adjusted EBITDA increasing by 26%. The strategic focus on core operations and reduction of administrative costs led to an impressive 439% increase in operating income year-to-date. The company also highlighted the successful renegotiation of acquisition-related liabilities, reducing them from $13.9 million to $8.5 million, including $2 million to be settled in shares. This strategic restructuring has paved the way for sustainable future growth, with NOW.V now targeting a run rate revenue of $43 million and $8 million EBITDA.

NowVertical Group Inc Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
NowVertical Group Completes Debt-to-Equity Conversion to Enhance Financial Flexibility
Neutral
Apr 22, 2025

NowVertical Group Inc. has completed a debt-to-equity conversion by issuing 93,917 Class A Subordinate voting shares to settle CAD$35,220.62 in bonus entitlements owed to certain employees. This move is part of the company’s ongoing efforts to align its financial structure and enhance its operational flexibility, potentially impacting its market positioning and stakeholder relations.

Spark’s Take on TSE:NOW Stock

According to Spark, TipRanks’ AI Analyst, TSE:NOW is a Neutral.

NowVertical Group Inc. shows strong potential with improvements in revenue growth and EBITDA, coupled with strategic corporate events. However, high leverage and historical profitability issues weigh on the score, along with the need for diversification in client and geographic revenue sources.

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

Product-Related AnnouncementsBusiness Operations and Strategy
NowVertical Launches DataCatalyst on Azure Marketplace to Boost Enterprise AI
Positive
Apr 17, 2025

NowVertical Group Inc. has launched its DataCatalyst solution on the Microsoft Azure Marketplace, enhancing its strategic positioning in enterprise AI and data infrastructure modernization. The Azure-native solution aims to unify, enrich, and operationalize enterprise data, reducing time-to-value and integration costs, and paving the way for generative AI and real-time analytics. This launch is part of NowVertical’s broader initiative to establish a Microsoft Center of Excellence, leveraging over 50 certified Azure professionals to deliver large-scale projects and optimize client operations.

Spark’s Take on TSE:NOW Stock

According to Spark, TipRanks’ AI Analyst, TSE:NOW is a Neutral.

NowVertical Group Inc. scores a 66, reflecting strong earnings improvements and strategic financial management. Promising technical indicators and positive corporate events bolster its position. Nevertheless, high leverage and historic profitability issues weigh on the score, highlighting the need for continued financial stability and diversification.

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

Business Operations and Strategy
NowVertical to Showcase at Planet MicroCap VEGAS 2025
Positive
Apr 14, 2025

NowVertical Group Inc. announced its participation in the Planet MicroCap Showcase: VEGAS 2025, where CEO Sandeep Mendiratta will present and engage with investors. This event marks an opportunity for NowVertical to showcase its capabilities in data and AI solutions, potentially enhancing its industry positioning and attracting investor interest.

Spark’s Take on TSE:NOW Stock

According to Spark, TipRanks’ AI Analyst, TSE:NOW is a Neutral.

NowVertical Group Inc. is making significant strides in improving its financial metrics, particularly with revenue growth and cash flow management. The earnings call underscores strategic improvements, yet financial instability due to high leverage and profitability concerns remain key issues. Technical analysis indicates positive short-term momentum, while valuation appears reasonable given the growth prospects. Despite these strengths, ongoing challenges in client concentration and geographic dependency pose risks.

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

Business Operations and Strategy
NowVertical Group Wins Prestigious Google Cloud Partner Award
Positive
Apr 8, 2025

NowVertical Group Inc. has been awarded the 2025 Google Cloud Data & Analytics Partner of the Year for Latin America, recognizing its exceptional capabilities on the Google Cloud Platform. This accolade underscores NowVertical’s position as a trusted partner in AI, analytics, and cloud computing, enhancing its market presence and opening new client opportunities in high-growth markets.

Spark’s Take on TSE:NOW Stock

According to Spark, TipRanks’ AI Analyst, TSE:NOW is a Neutral.

NowVertical Group Inc shows strong potential with improvements in EBITDA and revenue growth, as highlighted in the earnings call, contributing positively to the score. However, financial challenges such as high leverage and negative profitability weigh heavily, as reflected in the financial performance and valuation scores. Technical indicators suggest short-term momentum, but the long-term outlook requires addressing profitability and diversification risks.

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

Business Operations and StrategyFinancial Disclosures
NowVertical Group Reports Record Q4 2024 Financial Results
Positive
Apr 1, 2025

NowVertical Group Inc. reported record financial results for Q4 2024, with significant growth in revenue and net income, showcasing the effectiveness of its strategic focus and operational efficiency. The company’s strong performance, highlighted by a 225% increase in Adjusted EBITDA and substantial cash flow improvements, underscores its successful integration strategy and cost-saving measures, positioning it favorably in the AI-driven data solutions industry.

Business Operations and StrategyFinancial Disclosures
NowVertical Group to Announce 2024 Financial Results and Host Investor Webinar
Neutral
Mar 27, 2025

NowVertical Group Inc. announced it will release its fourth quarter and full year 2024 financial results on April 2, 2025, followed by a webinar to discuss the results and provide a business outlook. This event will feature key company executives and include a live Q&A session, offering stakeholders insights into the company’s financial performance and strategic direction.

Private Placements and FinancingBusiness Operations and Strategy
NowVertical Group Inc. Enters New Growth Phase with Strategic Integration
Positive
Mar 10, 2025

NowVertical Group Inc. has announced the next phase of its strategic growth plan, emphasizing the benefits of its integration efforts and entering into debt settlement agreements with certain employees. The company is leveraging its unified ‘One Brand, One Business’ strategy to drive organic revenue growth and position itself for opportunistic acquisitions. With a focus on strategic account, partnership, and capability integration, NowVertical aims to achieve a $50M revenue run rate and $10M run rate EBITDA, enhancing shareholder value and expanding its market presence.

Business Operations and Strategy
NowVertical Group to Participate in Prestigious ROTH Conference
Positive
Mar 4, 2025

NowVertical Group Inc. announced its participation in the 37th Annual ROTH Conference, an exclusive event for high-growth companies and institutional investors. This participation underscores NowVertical’s strong market position in AI and data-driven solutions, providing a platform to engage with investors and industry leaders, which could enhance its industry positioning and stakeholder relationships.

Private Placements and FinancingBusiness Operations and Strategy
NowVertical Converts Debt to Equity, Strengthening Leadership Alignment
Positive
Feb 20, 2025

NowVertical Group Inc. has completed a significant debt-to-equity conversion, settling over CAD$3 million in historical obligations by issuing 9,168,418 Class A subordinate voting shares. This strategic move includes settlements with CoreBI S.A., Acrotrend Solutions Ltd., and Andre Garber, allowing the company to enhance its cash flow flexibility and align its leadership team with future growth opportunities. The transaction also increases the stake of CEO Sandeep Mendiratta, reflecting a commitment to the company’s financial discipline and strategic vision.

Private Placements and FinancingBusiness Operations and Strategy
NowVertical Secures Payment Deferral, Strengthens Growth Strategy
Positive
Feb 3, 2025

NowVertical Group Inc. announced an agreement with the sellers of Affinio Inc., led by Whitecap Venture Partners, to defer the payment of $998,000 in liabilities to late Q4 2025. This deferral reflects the sellers’ confidence in NowVertical’s ‘One Brand, One Business’ strategy and allows the company to focus on its growth objectives, including a US$50 million revenue run rate and a 20% EBITDA margin. The agreement signifies a strong relationship between NowVertical and the sellers, supporting the company’s strategic vision and growth ambitions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.