NTG Clarity Networks Inc

NTG Clarity Networks Inc operates with a capital structure that includes a significant amount of long-term debt, which stands at CAD 7,185,140, and a negative total equity of CAD -711,900. The company's liquidity position is characterized by a current ratio of 1.03, indicating a marginal ability to meet short-term obligations. Free cash flow is positive at CAD 1,979,860, but this is partially offset by a negative net cash position after subtracting total debt.

Profitability metrics show a mixed picture. The company reports a net income of CAD 2,031,760 and an operating income of CAD 2,117,840, but its return on equity is negative at -2.854, reflecting the impact of negative equity. Return on assets is positive at 0.135, suggesting some efficiency in asset utilization. However, these figures fall below the industry median for return on equity and return on assets, indicating that the company is underperforming its peers in terms of profitability and capital efficiency.

The company's revenue is primarily concentrated in IT services and consulting, with no disclosed geographic breakdown. This lack of geographic diversification may expose the company to regional economic fluctuations. The absence of segment-specific revenue data limits the ability to assess the contribution of different service lines to overall performance.

Growth trajectory appears modest, with no specific revenue growth rates provided. The company's free cash flow of CAD 1,979,860 and capital expenditure of CAD -234,740 suggest a focus on maintaining operations rather than aggressive expansion. Analysts have provided a mean price target of CAD 3.04, with a median of CAD 2.50, indicating a generally positive but cautious outlook.

Risk factors include a medium liquidity risk due to the current ratio of 1.03 and a negative net cash position after subtracting total debt. The company has a low dilution risk, with no significant dilution potential identified. However, the negative equity position and high debt levels could pose challenges in the event of economic downturns or increased interest rates.

Recent events include the publication of the latest financial data, which provides a snapshot of the company's current financial health. No recent filings or transcripts have been disclosed that would indicate significant changes in the company's strategic direction or operational performance.

Revenue C$23.9M, +38,9% YoY.

• ▍Revenue C$23.9M, +38,9% YoY

Revenue C$20.9M, +42,2% YoY; Operating income −15,1% YoY.

• ▍Revenue C$20.9M, +42,2% YoY
• ▍Operating income −15,1% YoY
• ▍Net income −11,4% YoY
• ▍Free cash flow −26,8% YoY
• ▍Net margin 8.6%

Revenue C$18.9M, +51,1% YoY; Operating income −49,1% YoY.

• ▍Revenue C$18.9M, +51,1% YoY
• ▍Operating income −49,1% YoY
• ▍Net income −81,2% YoY
• ▍Free cash flow −70,1% YoY
• ▍Net margin 2.5%

Revenue C$19.7M, +67,6% YoY; Operating income +49,1% YoY.

• ▍Revenue C$19.7M, +67,6% YoY
• ▍Operating income +49,1% YoY
• ▍Net income −1,3% YoY
• ▍Free cash flow −3,7% YoY
• ▍Net margin 10.2%

Revenue C$17.2M; Operating income C$4.0M.

• ▍Revenue C$17.2M
• ▍Operating income C$4.0M
• ▍Net margin 19.1%