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NTG Clarity Networks (NCI) AI Stock Analysis
NTG Clarity Networks
(TSXV:NCI)
The score is primarily held back by weak financial quality driven by negative operating and free cash flow (despite profitability) and by bearish technicals with price below key moving averages and a negative MACD. These risks are partially offset by strong revenue growth, a strengthened balance sheet, and very attractive valuation metrics (low P/E and high dividend yield).
NTG Clarity Networks (NCI) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 16.32M
- Dividend Yield
- 24.20%
- Average Volume (3M)
- 69.99K
- Price to Earnings (P/E)
- 2.7
- Beta (1Y)
- 1.35
- Revenue Growth
- 22.27%
- EPS Growth
- -28.13%
- Country
- Canada
- Employees
- 400
- Sector
- General
- Sector Strength
- 55
- Industry
- Software - Application
NTG Clarity Networks Business Overview & Revenue Model
Company Description
NTG Clarity Networks Inc., established in Markham, Canada, in 1992, operates as a global provider of specialized telecommunications engineering, information technology, networking, and associated software solutions. The company's extensive product po...
How the Company Makes Money
NTG Clarity Networks primarily makes money by selling IT services and software-related solutions to enterprise customers. Its core revenue model is typically services-led: (1) Professional services revenue from project-based engagements such as custo...
NTG Clarity Networks Earnings Call Summary
The call highlights significant financial growth and strategic achievements, including record revenue and net income, while acknowledging increased operating expenses and receivables due to expansion efforts. The overall sentiment is optimistic, driven by strong market positioning and future growth prospects in Saudi Arabia.
Q3-2024 Updates
Positive Updates
Negative Updates
Company Guidance
During the third quarter 2024 earnings call for NTG Clarity Networks Inc., several key financial metrics and guidance updates were highlighted. The company reported its eighth consecutive quarter of record-setting revenue, with a 109% increase to $14.7 million compared to the previous year, and a year-to-date revenue increase of 100% to $38.9 million. Net income also reached new heights, rising 303% to $2.1 million for the quarter and 272% year-to-date to $6.9 million. Additionally, NTG Clarity introduced adjusted EBITDA as a new metric, which grew by 140% to $3.2 million, resulting in a 22% adjusted EBITDA margin. A major highlight was a $53 million, three-year contract, contributing to a backlog of $83.5 million in work on hand. The company reaffirmed its full-year guidance of $55 million in revenue and a 14% net income margin for 2024, reflecting a recent increase from previous estimates. Despite the impressive growth, NTG Clarity emphasized continued investments in staffing and infrastructure to sustain its trajectory, particularly in the fast-growing Saudi Arabian market where 97% of its revenue is concentrated.
NTG Clarity Networks Financial Statement Overview
Summary
Strong revenue growth and an improved balance sheet (low leverage and positive equity) support the score, but it is heavily offset by negative operating cash flow and free cash flow in both 2025 and TTM, despite positive earnings. Margins have also cooled versus 2024, reducing earnings quality.
Income Statement
74PositiveBalance Sheet
78PositiveCash Flow
34Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 86.15M | 83.35M | 56.13M | 27.73M | 17.65M | 11.90M |
| Gross Profit | 29.25M | 29.27M | 20.85M | 8.80M | 6.72M | 6.59M |
| EBITDA | 7.08M | 11.58M | 12.07M | 3.02M | 2.00M | 1.81M |
| Net Income | 5.47M | 5.52M | 9.81M | 1.71M | 1.25M | 1.37M |
Balance Sheet | ||||||
| Total Assets | 48.09M | 45.59M | 28.29M | 12.39M | 8.17M | 6.49M |
| Cash, Cash Equivalents and Short-Term Investments | 2.97M | 8.26M | 4.95M | 358.09K | 725.02K | 158.87K |
| Total Debt | 5.83M | 6.12M | 6.75M | 8.80M | 7.96M | 7.87M |
| Total Liabilities | 17.30M | 18.18M | 15.69M | 15.63M | 14.94M | 14.41M |
| Stockholders Equity | 30.80M | 27.41M | 12.60M | -3.24M | -6.78M | -7.92M |
Cash Flow | ||||||
| Free Cash Flow | -5.86M | -3.83M | 1.61M | 1.17M | 1.06M | 253.14K |
| Operating Cash Flow | -5.16M | -2.82M | 2.57M | 1.86M | 2.49M | 1.80M |
| Investing Cash Flow | -1.12M | -1.11M | -825.49K | -2.50M | -1.43M | -1.55M |
| Financing Cash Flow | 6.97M | 7.25M | 2.84M | 275.06K | -496.65K | -239.50K |
NTG Clarity Networks Technical Analysis
Price Trends
Market Momentum
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 0.34 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.43, and below the 200-day MA of 0.80, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 37.34 is Neutral, neither overbought nor oversold. The STOCH value of 5.90 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
Overall Rating
TSE:ONE58Neutral- TSE:NCI57Neutral
TSE:ABXX52Neutral
TSE:NTAR39Underperform
TSE:MHUB38.5Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:ONE | 58Neutral | CAD 50.43M | -23.11 | -66.53% | ― | 265.22% | -127.59% |
| TSE:NCI | 57Neutral | CAD 16.32M | 2.66 | 19.26% | 24.20% | 22.27% | -28.13% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TSE:ABXX | 52Neutral | CAD 606.27M | -8.88 | -93.80% | ― | 303.70% | -1.45% |
| TSE:NTAR | 39Underperform | CAD 11.83M | -2.86 | 74.69% | ― | 18.40% | 36.36% |
| TSE:MHUB | 39Underperform | CAD 34.35M | -3.06 | -564.35% | ― | ― | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:NCI | NTG Clarity Networks | 0.34 | -1.44 | -80.90% | |
| TSE:ABXX | Abaxx Technologies Inc. | 15.63 | 15.29 | 4497.06% | |
| TSE:ONE | 01 Communique Laboratory Inc. | 0.46 | -0.54 | -54.00% | |
| TSE:NTAR | NexTech AR Solutions Corp | 0.05 | -0.12 | -69.70% | |
| TSE:MHUB | Minehub Technologies, Inc. | 0.34 | -0.64 | -65.46% |
NTG Clarity Networks Corporate Events
NTG Clarity Wins Four-Year, $100M Extension From Saudi IT Client
PositiveNTG Clarity Networks, a Canadian provider of digital transformation, software, networking, and IT services to large enterprises, has built a global delivery model with over 1,400 professionals. Its clients include financial institutions and network s...
NTG Clarity Refreshes Board With New Independent Director as Veteran Member Retires
PositiveNTG Clarity Networks has appointed Ahmed Hashem to its Board of Directors and to the Audit and Compensation Committees, effective October 1, 2026, replacing retiring director Mohamed Saleem Siddiqi. Hashem brings more than three decades of experience...
NTG Clarity Withdraws 2026 Guidance as Saudi Slowdown Weighs on Q2 Results
NegativeNTG Clarity reported Q2 2026 revenue of $20.1 million, up 6.4% year over year but down sequentially, with gross margin pressure and a sharp drop in adjusted EBITDA as regional conflicts slowed client decision-making and project starts. The company...
NTG Clarity Sets Date for Q2 2026 Results and Earnings Call
NeutralNTG Clarity Networks Inc. said it will release its financial results for the quarter ended June 30, 2026, after markets close on August 27, 2026. Management will discuss the financial and operating performance on an earnings call and webcast schedule...
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.
Date of analysis: Oct 14, 2026