CNSX:NC

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NetCents Technology

Executive Summary

NetCents Technology Inc. provides electronic digital payment services in Canada.


Snowflake Analysis

Imperfect 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-14.1%

NC

1.1%

CA IT

2.4%

CA Market


1 Year Return

165.0%

NC

-15.2%

CA IT

-12.4%

CA Market

Return vs Industry: NC exceeded the Canadian IT industry which returned -15.1% over the past year.

Return vs Market: NC exceeded the Canadian Market which returned -12.4% over the past year.


Shareholder returns

NCIndustryMarket
7 Day-14.1%1.1%2.4%
30 Day200.0%-4.4%-0.9%
90 Day165.0%14.0%17.3%
1 Year165.0%165.0%-15.1%-15.2%-9.4%-12.4%
3 Year367.6%367.6%30.3%30.1%4.2%-5.7%
5 Yearn/a75.0%74.6%22.1%3.8%

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?


In this section, we usually try to help investors determine whether NetCents Technology is trading at an attractive price based on the cash flow it is expected to produce in the future. But as NetCents Technology has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of NC’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through NetCents Technology regulatory filings.
  • Explore potentially undervalued companies in the Software industry.

Future Growth

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

24.0%

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?

-38.1%

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 -38.1% 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 (12%).


Return on Equity

High ROE: NC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is NetCents Technology's financial position?


Financial Position Analysis

Short Term Liabilities: NC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: NC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: NC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: NC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


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 sufficient cash runway for 1 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: NC is forecast to have sufficient cash runway for 0 months based on free cash flow estimates, but has since raised additional capital.


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?

1.8yrs

Average management tenure


CEO

Clayton Moore (43yo)

14.5yrs

Tenure

CA$1,308,503

Compensation

Mr. Clayton Moore is the founder of NetCents Technology Inc. (formerly, NetCents Systems Ltd) and has been its Chief Executive Officer since 2006. Mr. Moore served as the President of NetCents Systems Ltd. ...


CEO Compensation Analysis

Compensation vs Market: Clayton's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD173.28K).

Compensation vs Earnings: Clayton's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Clayton Moore
Founder14.5yrsCA$1.31m11.76% CA$14.1m
Christopher Cherry
CFO & Director0.50yrCA$7.50kno data
Mehdi Mehrtash
Chief Technical Officer2.67yrsCA$115.50kno data
Jennifer Lowther
Chief Revenue Officer & Director2.67yrsCA$844.83k0.040% CA$47.7k
Sonja Bakgaard
Investor Relations Managerno datano datano data
Pat Albright
Senior Vice President of Strategic Development0.33yrno datano data

1.8yrs

Average Tenure

Experienced Management: NC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Clayton Moore
Founder14.5yrsCA$1.31m11.76% CA$14.1m
Christopher Cherry
CFO & Director0.50yrCA$7.50kno data
Jennifer Lowther
Chief Revenue Officer & Director2.67yrsCA$844.83k0.040% CA$47.7k
Robert Meister
Independent Director4.42yrsCA$52.50kno data
Eric Turille
Member of Advisory Board1.5yrsno datano data
Phillip Shum
Member of Advisory Board4.17yrsno datano data
John Kanwischer
Member of Advisory Board4.17yrsno datano data
Guy Lepage
Member of Advisory Board2.33yrsno datano data
Don Sieb
Member of Advisory Board1.5yrsno datano data
Daniel-Carl Eigenmann
Member of Advisory Board0.50yrno datano data

2.5yrs

Average Tenure

43yo

Average Age

Experienced Board: NC's board of directors are not considered experienced ( 2.5 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: Insufficient data to determine if insiders have bought more shares than they have sold 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 44.9%.


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:
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: CA$120.285m
  • Shares outstanding: 75.65m
  • 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. Its platform allows clients and merchants to manage electronic payments through various devices and currencies. The company provides cryptocurrency ecommerce payments, in-store payments, instant settlements, as well as card and exchange services. It also allow users to purchase digital currency, such as Bitcoin, Ethereum, and Litecoin. The company is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 23:59
End of Day Share Price2020/07/03 00:00
Earnings2020/01/31
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.