NCC Group plc (NCC) AI Stock Analysis

• Market Cap: £477.65M
• Dividend Yield: 2.98%
• Average Volume (3M): 748.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• Revenue Growth: -3.19%
• EPS Growth: -446.58%
• Country: UK
• Employees: 2,200
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 306,188,900
• 10 Day Avg. Volume: 764,851
• 30 Day Avg. Volume: 748,432
• PEG Ratio: 0.24
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.63
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: 170.00p ▲(7.87%Upside)

NCC Group plc's score is driven by positive technical momentum and supportive corporate events, indicating confidence in management and strategic direction. However, financial performance and valuation concerns, particularly the negative P/E ratio, weigh on the overall score, highlighting the need for operational improvements.

NCC Group plc Business Overview & Revenue Model

Company Description

NCC Group plc engages in the cyber and software resilience business in the United Kingdom, the Asian-Pacific, North America, and Europe. It operates in two segments, Assurance and Software Resilience. The company offers assessment and advisory services, which include risk management, supply chain risk, cloud and infrastructure, application and security software, mobile, managed vulnerability scanning, hardware and embedded systems, and cryptography, as well as calibrator and cyber security review solutions. It also provides detection and response services, including managed detection and response, incident response, and threat intelligence; compliance services, such as data privacy, government security, and payments; and remediation and big bounty services. In addition, the company offers training services for end-users, administrators, tech specialists, and managers. Further, it provides software resilience services, such as cloud software escrow solutions, on-premises software escrow agreements, on-premises software escrow verification, virtual and physical escrow vaults, software security testing, and software risk assessment tools. The company serves customers in various industries that include finance and professional, transport and manufacturing, public, retail, and energy and utilities, as well as technology, media, telecommunications sectors. NCC Group plc was founded in 1999 and is headquartered in Manchester, the United Kingdom.

How the Company Makes Money

NCC Group makes money through a diverse revenue model primarily driven by its Cyber Assurance and Software Resilience divisions. The Cyber Assurance segment generates revenue by providing cybersecurity consulting, testing, and managed services to help organizations identify and mitigate cyber risks. This includes penetration testing, incident response, and compliance assessments. The Software Resilience division earns income by offering software escrow and verification services, ensuring that businesses have access to their software and data in the event of supplier failure. Key revenue streams include consulting fees, subscription-based managed services, and contracts for software escrow arrangements. Additionally, NCC Group benefits from strategic partnerships and collaborations with technology providers and enterprises, enhancing its service offerings and expanding its market reach.

NCC Group plc Financial Statement Overview

Summary

NCC Group plc shows mixed financial performance with strong cash flow and a stable balance sheet but is challenged by negative profitability margins. Improvement in gross profit margin indicates better cost management, yet negative EBIT and net profit margins highlight operational inefficiencies.

Income Statement

NCC Group plc has shown inconsistent revenue growth, with a decline of 3.19% in the most recent year. The gross profit margin improved to 41.41% from 32.63% the previous year, indicating better cost management. However, the company incurred a negative EBIT margin (-6.63%) and net profit margin (-7.68%) for the latest period, reflecting operational challenges impacting profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.37, indicating a conservative capital structure. The equity ratio stands at 54.23%, signifying a stable financial position with more than half of the assets financed by equity. However, the return on equity has turned negative at -10.60%, highlighting the recent losses impacting shareholder returns.

Cash Flow

NCC Group plc's free cash flow remains positive, although it decreased by 10.08% compared to the previous year. The operating cash flow to net income ratio is robust at -1.10, reflecting strong cash generation relative to the accounting losses. However, the free cash flow to net income ratio indicates operational efficiency challenges.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
324.40M	335.10M	314.80M	270.50M	263.70M
	Gross Profit
136.30M	109.40M	112.90M	90.90M	80.80M
	EBIT
-21.50M	17.60M	34.90M	31.00M	21.50M
	EBITDA
7.58M	40.20M	54.60M	50.70M	45.10M
	Net Income Common Stockholders
-24.90M	-4.60M	23.00M	10.00M	6.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.80M	34.10M	73.20M	116.50M	95.00M
	Total Assets
433.30M	501.40M	576.40M	432.30M	437.20M
	Total Debt
87.30M	113.70M	158.20M	67.60M	137.40M
	Net Debt
69.30M	79.60M	85.00M	-48.90M	42.40M
	Total Liabilities
198.30M	223.20M	283.20M	166.10M	231.30M
	Stockholders Equity
235.00M	278.20M	293.20M	266.20M	205.90M
Cash Flow		Free Cash Flow
22.30M	24.80M	46.60M	34.10M	33.90M
	Operating Cash Flow
26.40M	32.10M	54.80M	38.90M	39.20M
	Investing Cash Flow
3.70M	-6.30M	-161.20M	-4.30M	-5.30M
	Financing Cash Flow
-49.40M	-67.30M	61.80M	-6.80M	26.20M

NCC Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 157.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NCC, the sentiment is Positive. The current price of 157.6 is above the 20-day moving average (MA) of 151.34, above the 50-day MA of 142.10, and above the 200-day MA of 147.84, indicating a bullish trend. The MACD of 4.88 indicates Negative momentum. The RSI at 72.70 is Negative, neither overbought nor oversold. The STOCH value of 79.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:NCC.

NCC Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGE	79 Outperform	£12.01B	35.51	36.78%	1.65%	7.69%	32.91%
KNOS	75 Outperform	£885.19M	25.42	24.12%	3.93%	-4.13%	23.09%
IDOX	74 Outperform	£266.30M	50.34	6.94%	1.20%	19.55%	-6.45%
NCC	67 Neutral	£477.65M	―	-10.60%	2.98%	-3.19%	-446.58%
TRST	62 Neutral	£948.52M	209.45	12.00%	―	16.23%	-17.91%
Sector *	61 Neutral	$11.29B	10.17	-6.88%	2.97%	7.41%	-8.93%
GBG	57 Neutral	£669.92M	83.39	1.33%	1.56%	1.63%	―

NCC Group plc Corporate Events

NCC Group Executives Purchase Shares Under Incentive Plan

NCC Group plc announced the monthly purchase of ordinary shares by several of its top executives, including the CEO, CFO, CMO, COO, and Managing Director, under the UK Share Incentive Plan. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to aligning the interests of its leadership with those of its shareholders, potentially strengthening stakeholder confidence in its governance and strategic direction.

The most recent analyst rating on (GB:NCC) stock is a Buy with a £150.00 price target. To see the full list of analyst forecasts on NCC Group plc stock, see the GB:NCC Stock Forecast page.

NCC Group Announces Change in Major Holdings

NCC Group plc has announced a change in its major holdings, with Richard Griffiths increasing his voting rights to 10.31% as of April 29, 2025. This adjustment in holdings could impact NCC Group’s governance and decision-making processes, potentially influencing its strategic direction and affecting stakeholders.

NCC Group Explores Options for Escode Business Amid Acquisition Speculation

NCC Group plc has acknowledged recent media speculation about potential interest in acquiring its Escode business. The company is exploring various options, including a possible sale, but emphasizes that discussions are in the preliminary stages with no formal proposals received yet. Stakeholders will be informed of any significant developments.

NCC Group Secures £120m Credit Facility for Strategic Growth

NCC Group plc has secured a new four-year £120 million multi-currency revolving credit facility to support its strategic growth plans. This new facility, which includes a £50 million uncommitted accordion option, replaces the previous £162.5 million facility and provides the company with the financial flexibility to pursue its objectives beyond 2025.

NCC Group Announces Change in Major Holdings

NCC Group plc has announced a change in its major holdings, with Richard Griffiths now holding a 9.26% stake in the company, up from a previous position of 8.06%. This increase in holdings indicates a significant shift in the ownership structure, potentially impacting the company’s strategic direction and stakeholder interests.

NCC Group Executives Participate in Share Incentive Plan

NCC Group plc has announced the monthly purchase of its ordinary shares by key executives under the UK Share Incentive Plan. This move, involving the CEO, CFO, CMO, COO, and Managing Director of Escode, reflects a commitment to align management interests with shareholder value, potentially strengthening stakeholder confidence and enhancing the company’s market positioning.

NCC Group Executives Reinvest Dividends in Company Shares

NCC Group plc announced transactions involving its senior management, including the CEO, CFO, COO, and CMO, who have reinvested dividends to purchase ordinary shares of the company. These transactions, conducted on the London Stock Exchange, reflect the executives’ confidence in the company’s future performance and align their interests with those of shareholders.

NCC Group Sells Fox Crypto to Focus on Core Cyber Security Operations

NCC Group plc has completed the sale of its non-core Fox Crypto business in the Netherlands to CR Group Nordic AB for €78.5 million. This move is part of NCC Group’s strategy to streamline its operations and focus on its core cyber security business, using the proceeds to reduce debt and support growth, thereby enhancing shareholder value.

NCC Group Announces Change in Major Shareholdings

NCC Group plc has announced a change in its major holdings, with Richard Griffiths now holding 8.06% of the company’s voting rights. This shift in holdings could impact NCC Group’s strategic decisions and influence its market positioning, as stakeholders may need to consider the implications of Griffiths’ increased influence.

NCC Group Executives Participate in Share Incentive Plan

NCC Group plc announced the monthly purchase of ordinary shares by its key executives, including the CEO, CFO, CMO, and COO, as part of the UK Share Incentive Plan. This move reflects the company’s commitment to aligning the interests of its leadership team with those of its shareholders, potentially strengthening stakeholder confidence and enhancing market positioning.

NCC Group Announces Change in Major Shareholdings

NCC Group plc has announced a change in major holdings, with Richard Griffiths increasing his voting rights in the company. The notification indicates a shift in the ownership structure, with Griffiths now holding a total of 7.65% of the voting rights, up from a previous position of 6.64%. This change could impact the company’s governance and strategic decisions, reflecting Griffiths’ increased influence within the organization.

NCC Group PLC Announces Change in Shareholder Voting Rights

NCC Group PLC, a company involved in cybersecurity and risk mitigation, has announced a change in its shareholder voting rights. NFU Mutual Insurance Society Limited has reduced its direct interest in NCC Group PLC, falling below the 3% threshold due to a disposal of voting rights. This change in voting rights could impact the company’s governance and decision-making processes, potentially affecting its strategic direction and stakeholder interests.

NCC Group Announces Change in Voting Rights Structure

NCC Group plc has announced a change in its voting rights structure following an acquisition by Harwood Capital LLP. The acquisition increased Harwood Capital’s voting rights in NCC Group to 4.35201%, up from a previous 3.64666%. This adjustment in voting rights may influence NCC Group’s strategic decisions and shareholder dynamics, potentially impacting its market positioning and stakeholder interests.