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 not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 15% a week.
Volatility Over Time: NC's weekly volatility has decreased from 21% to 15% over the past year.
Market Performance
7 Day Return
2.4%
NC
-0.2%
CA IT
-0.5%
CA Market
1 Year Return
282.4%
NC
-5.5%
CA IT
1.7%
CA Market
Return vs Industry: NC exceeded the Canadian IT industry which returned -6% over the past year.
Return vs Market: NC exceeded the Canadian Market which returned 2.6% over the past year.
Shareholder returns
| NC | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | -0.2% | -0.5% |
| 30 Day | 39.8% | 2.8% | 3.4% |
| 90 Day | 58.5% | 17.3% | 12.3% |
| 1 Year | 282.4%282.4% | -5.4%-5.5% | 5.3%1.7% |
| 3 Year | -50.9%-50.9% | 43.3%43.1% | 13.0%2.3% |
| 5 Year | n/a | 81.4%81.0% | 66.2%40.7% |
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
9 months ago | Simply Wall St
NetCents Technology Inc. (CSE:NC): What Does Its Beta Value Mean For Your Portfolio?10 months ago | Simply Wall St
What Type Of Shareholder Owns NetCents Technology Inc.'s (CSE:NC)?10 months ago | Simply Wall St
Does NetCents Technology Inc.'s (CSE:NC) CEO Pay Matter?Valuation
Is NetCents Technology undervalued compared to its fair value and its price relative to the market?
100.68x
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 (100.7x) compared to the CA IT industry average (6.2x).
Next Steps
Future Growth
How is NetCents Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
34.8%
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
- 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.
- NetCents Technology competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Software industry.
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 (2.4%).
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?
2.3yrs
Average management tenure
CEO
Clayton Moore (43 yo)
4.92yrs
Tenure
CA$336,712
Compensation
Mr. Clayton Moore is the Founder of NetCents Technology Inc. (formerly, NetCents Systems Ltd) and has been its Chief Executive Officer. Mr. Moore served as the President of NetCents Systems Ltd., since 200...
CEO Compensation Analysis
Compensation vs Market: Clayton's total compensation ($USD264.39K) is above average for companies of similar size in the Canadian market ($USD154.03K).
Compensation vs Earnings: Clayton's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 4.92yrs | CA$336.71k | 13.52% CA$ 16.0m | |
| CFO & Director | 1.08yrs | CA$95.88k | 0.11% CA$ 127.0k | |
| Chief Revenue Officer & Director | 3.17yrs | CA$402.48k | 3.09% CA$ 3.7m | |
| Chief Technical Officer | 0.083yr | no data | no data | |
| Investor Relations Manager | no data | no data | no data | |
| Senior Vice President of Strategic Development | 0.83yr | no data | no data |
2.3yrs
Average Tenure
Experienced Management: NC's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 4.92yrs | CA$336.71k | 13.52% CA$ 16.0m | |
| CFO & Director | 1.08yrs | CA$95.88k | 0.11% CA$ 127.0k | |
| Chief Revenue Officer & Director | 3.17yrs | CA$402.48k | 3.09% CA$ 3.7m | |
| Member of Advisory Board | 0.75yr | no data | no data | |
| Member of Advisory Board | 2yrs | no data | no data | |
| Member of Advisory Board | 4.67yrs | no data | no data | |
| Member of Advisory Board | 4.67yrs | no data | no data | |
| Member of Advisory Board | 0.42yr | no data | no data | |
| Member of Advisory Board | 2.83yrs | no data | no data | |
| Member of Advisory Board | 2yrs | no data | no data | |
| Member of Advisory Board | 1yr | no data | no data | |
| Member of Advisory Board | 1yr | no data | no data |
2.0yrs
Average Tenure
43yo
Average Age
Experienced Board: NC's board of directors are not considered experienced ( 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 bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 81.1%.
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$118.578m
- Shares outstanding: 98.00m
- Website: https://www.net-cents.com
Location
- NetCents Technology Inc.
- MNP Tower
- Suite 1000
- Vancouver
- British Columbia
- V3C 1E3
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NC | CNSX (Canadian National Stock Exchange) | Yes | New Common Shares | CA | CAD | Mar 2016 |
| 26N | DB (Deutsche Boerse AG) | Yes | New Common Shares | DE | EUR | Mar 2016 |
| NTTC.F | OTCPK (Pink Sheets LLC) | Yes | New Common Shares | US | USD | Mar 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 00:42 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/07/31 |
| Annual Earnings | 2019/10/31 |
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.