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NTG Clarity Networks
(NCI)
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Rating:62Neutral
Price Target:
C$0.42
▼(-48.29% Downside)
Action:Reiterated
Date:08/29/26
The score is driven primarily by mixed fundamentals: strong growth and an improved balance sheet are offset by negative operating and free cash flow, which raises concern about cash conversion and earnings quality. Valuation is a major positive (very low P/E and high dividend yield), but technicals are a significant drag with a pronounced downtrend and bearish momentum.
Positive Factors
Strong Revenue Growth
Strong and sustained revenue expansion indicates growing customer demand for NTG Clarity Networks’ technology services and software-related solutions. Continued scale can support broader delivery capacity, deepen enterprise relationships, and provide a foundation for future earnings growth if profitability is preserved.
Negative Factors
Negative Cash Conversion
Negative operating and free cash flow indicate that reported profits are not currently translating into internally generated liquidity. If this persists, the company may have less flexibility to fund growth, absorb working-capital needs, or return capital without relying on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Strong and sustained revenue expansion indicates growing customer demand for NTG Clarity Networks’ technology services and software-related solutions. Continued scale can support broader delivery capacity, deepen enterprise relationships, and provide a foundation for future earnings growth if profitability is preserved.
Read all positive factors
NTG Clarity Networks (NCI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$19.20M
Dividend Yield20.57%
Average Volume (3M)78.34K
Price to Earnings (P/E)3.1
Beta (1Y)1.17
Revenue Growth22.27%
EPS Growth-28.13%
CountryCA
Employees400
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.13
Shares Outstanding48,003,704
10 Day Avg. Volume182,978
30 Day Avg. Volume78,337
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)2.33
Price to Sales (P/S)0.77
P/FCF Ratio-16.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2.00Price Target Upside143.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.12
Revenue Forecast (FY)C$87.00M
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...
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 cu...
NTG Clarity Networks Earnings Call Summary
Earnings Call Date:Nov 12, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Record Revenue Growth
Q3 2024 marked the eighth consecutive quarter of record-setting revenue, with top-line revenue up 109% year-over-year to $14.7 million. Year-to-date revenue increased 100% to $38.9 million.
Negative Updates
Increase in Operating Expenses
Operating expenses rose to 18% of revenue due to investments in new office space, employee hiring, and training to support growth.
Read all updates
Q3-2024 Updates
Positive
Negative
Record Revenue Growth
Q3 2024 marked the eighth consecutive quarter of record-setting revenue, with top-line revenue up 109% year-over-year to $14.7 million. Year-to-date revenue increased 100% to $38.9 million.
Read all positive 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
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
34
Negative
| 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 | 2.52M | 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
Negative
0.82
Price Trends
0.72
Negative
0.78
Negative
0.97
Negative
Market Momentum
-0.10
Positive
20.68
Positive
10.09
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 0.82 is above the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.72, and below the 200-day MA of 0.97, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 20.68 is Positive, neither overbought nor oversold. The STOCH value of 10.09 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | C$19.20M | 3.13 | 19.26% | 20.57% | 22.27% | -28.13% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | C$52.63M | -24.12 | -66.53% | ― | 265.22% | -127.59% | |
50 Neutral | C$683.08M | -10.05 | -93.80% | ― | 303.70% | -1.45% | |
45 Neutral | C$54.29M | -4.00 | -651.25% | ― | ― | ― | |
42 Neutral | C$24.85M | -6.00 | 74.69% | ― | 18.40% | 36.36% |
* General Sector Average
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NTG Clarity Networks
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-1.25
-75.76%
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NTG Clarity Networks Corporate Events
Business Operations and StrategyFinancial Disclosures
NTG Clarity Withdraws 2026 Guidance as Saudi Slowdown Weighs on Q2 Results
Negative
Aug 27, 2026
NTG 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...
Business Operations and StrategyFinancial Disclosures
NTG Clarity Sets Date for Q2 2026 Results and Earnings Call
Neutral
Aug 21, 2026
NTG 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 sched...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.