CNSX:NC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

NetCents Technology

Executive Summary

NetCents Technology Inc. provides electronic digital payment services in Canada and Europe. More Details


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

Share Price & News

How has NetCents Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NC is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 19% a week.

Volatility Over Time: NC's weekly volatility (19%) has been stable over the past year, but is still higher than 75% of Canadian stocks.


Market Performance


7 Day Return

-12.5%

NC

-0.9%

CA IT

1.8%

CA Market


1 Year Return

50.0%

NC

6.8%

CA IT

15.9%

CA Market

Return vs Industry: NC exceeded the Canadian IT industry which returned 6.8% over the past year.

Return vs Market: NC exceeded the Canadian Market which returned 15.9% over the past year.


Shareholder returns

NCIndustryMarket
7 Day-12.5%-0.9%1.8%
30 Day-27.6%-6.4%2.3%
90 Day-12.5%1.8%6.8%
1 Year50.0%50.0%6.8%6.8%20.2%15.9%
3 Year-41.3%-41.3%26.5%26.3%24.5%12.7%
5 Year460.0%460.0%69.1%68.7%56.2%32.6%

Long-Term Price Volatility Vs. Market

How volatile is NetCents Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NetCents Technology undervalued compared to its fair value and its price relative to the market?

65.06x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: NC is unprofitable, so we can't compare its PE Ratio to the CA IT industry average.

PE vs Market: NC is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NC is overvalued based on its PB Ratio (65.1x) compared to the CA IT industry average (7.1x).


Next Steps

Future Growth

How is NetCents Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

28.9%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as NetCents Technology has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has NetCents Technology performed over the past 5 years?

-37.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NC is currently unprofitable.

Growing Profit Margin: NC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NC is unprofitable, and losses have increased over the past 5 years at a rate of 37.5% per year.

Accelerating Growth: Unable to compare NC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NC is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-5.7%).


Return on Equity

High ROE: NC has a negative Return on Equity (-1670.92%), as it is currently unprofitable.


Next Steps

Financial Health

How is NetCents Technology's financial position?


Financial Position Analysis

Short Term Liabilities: NC's short term assets (CA$3.2M) do not cover its short term liabilities (CA$6.0M).

Long Term Liabilities: NC's short term assets (CA$3.2M) exceed its long term liabilities (CA$1.3M).


Debt to Equity History and Analysis

Debt Level: NC's debt to equity ratio (19.8%) is considered satisfactory.

Reducing Debt: NC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NC has less than a year of cash runway if free cash flow continues to reduce at historical rates of 37.2% each year


Next Steps

Dividend

What is NetCents Technology current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NC's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Clayton Moore (43 yo)

5.08yrs

Tenure

CA$336,712

Compensation

Mr. Clayton Moore is the Founder of NetCents Technology Inc. (formerly, NetCents Systems Ltd) and has been its Chief Executive Officer. Mr. Moore served as the President of NetCents Systems Ltd., since 200...


CEO Compensation Analysis

Compensation vs Market: Clayton's total compensation ($USD265.95K) is above average for companies of similar size in the Canadian market ($USD151.87K).

Compensation vs Earnings: Clayton's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Clayton Moore
Founder5.08yrsCA$336.71k13.69%
CA$ 11.1m
Christopher Cherry
CFO & Director1.25yrsCA$95.88k0.19%
CA$ 155.0k
Jennifer Lowther
Chief Revenue Officer & Director3.33yrsCA$402.48k3.13%
CA$ 2.5m
Nilang Vyas
Chief Technical Officer0.25yrno datano data
Sonja Bakgaard
Investor Relations Managerno datano datano data
Pat Albright
Senior Vice President of Strategic Development1yrno datano data

2.4yrs

Average Tenure

Experienced Management: NC's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Clayton Moore
Founder5.08yrsCA$336.71k13.69%
CA$ 11.1m
Christopher Cherry
CFO & Director1.25yrsCA$95.88k0.19%
CA$ 155.0k
Jennifer Lowther
Chief Revenue Officer & Director3.33yrsCA$402.48k3.13%
CA$ 2.5m
Qin Wang
Member of Advisory Board0.92yrno datano data
Eric Turille
Member of Advisory Board2.17yrsno datano data
Phillip Shum
Member of Advisory Board4.83yrsno datano data
John Kanwischer
Member of Advisory Board4.83yrsno datano data
Claude Schmidt
Member of Advisory Board0.58yrno datano data
Guy Lepage
Member of Advisory Board3yrsno datano data
Don Sieb
Member of Advisory Board2.17yrsno datano data
Daniel-Carl Eigenmann
Member of Advisory Board1.17yrsno datano data
Nicolas Genko
Member of Advisory Board1.17yrsno datano data

2.2yrs

Average Tenure

43yo

Average Age

Experienced Board: NC's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 48.7%.


Top Shareholders

Company Information

NetCents Technology Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NetCents Technology Inc.
  • Ticker: NC
  • Exchange: CNSX
  • Founded: NaN
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: CA$81.334m
  • Shares outstanding: 96.83m
  • Website: https://www.net-cents.com

Location

  • NetCents Technology Inc.
  • MNP Tower
  • Suite 1000
  • Vancouver
  • British Columbia
  • V3C 1E3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NCCNSX (Canadian National Stock Exchange)YesNew Common SharesCACADMar 2016
26NDB (Deutsche Boerse AG)YesNew Common SharesDEEURMar 2016
NTTC.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDMar 2016

Biography

NetCents Technology Inc. provides electronic digital payment services in Canada and Europe. Its platform allows clients and merchants to manage electronic payments through various devices and currencies. T...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 00:27
End of Day Share Price2021/03/05 00:00
Earnings2020/07/31
Annual Earnings2019/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.