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NET

Netcall AIM:NET Stock Report

Last Price

UK£0.77

Market Cap

UK£114.8m

7D

-7.8%

1Y

-12.1%

Updated

27 Sep, 2022

Data

Company Financials +
NET fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance0/6
Financial Health3/6
Dividends0/6

NET Stock Overview

Netcall plc engages in the design, development, sale, and support of software products and services in the United Kingdom and internationally.

Netcall Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Netcall
Historical stock prices
Current Share PriceUK£0.77
52 Week HighUK£0.92
52 Week LowUK£0.50
Beta0.33
1 Month Change-10.53%
3 Month Change-7.83%
1 Year Change-12.07%
3 Year Change159.32%
5 Year Change56.12%
Change since IPO750.00%

Recent News & Updates

Jun 11
Netcall (LON:NET) Seems To Use Debt Quite Sensibly

Netcall (LON:NET) Seems To Use Debt Quite Sensibly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

NETGB SoftwareGB Market
7D-7.8%-0.3%-3.2%
1Y-12.1%-18.9%-14.6%

Return vs Industry: NET exceeded the UK Software industry which returned -18.9% over the past year.

Return vs Market: NET exceeded the UK Market which returned -14.6% over the past year.

Price Volatility

Is NET's price volatile compared to industry and market?
NET volatility
NET Average Weekly Movement3.7%
Software Industry Average Movement4.9%
Market Average Movement5.2%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.6%

Stable Share Price: NET is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NET's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1984235Henrik Banghttps://www.netcall.com

Netcall plc engages in the design, development, sale, and support of software products and services in the United Kingdom and internationally. It offers Liberty Create, a low-code development platform for producing applications that automate and transform the business and customer experience; Liberty RPA, an AI-powered robotic process automation; Liberty Connect, a cloud messaging and bot platform; and Liberty Converse, an omnichannel contact center and customer engagement management solution. The company also provides consultancy, implementation, and training services.

Netcall Fundamentals Summary

How do Netcall's earnings and revenue compare to its market cap?
NET fundamental statistics
Market CapUK£114.76m
Earnings (TTM)UK£1.17m
Revenue (TTM)UK£28.49m

98.1x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NET income statement (TTM)
RevenueUK£28.49m
Cost of RevenueUK£2.53m
Gross ProfitUK£25.96m
Other ExpensesUK£24.79m
EarningsUK£1.17m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Oct 05, 2022

Earnings per share (EPS)0.0078
Gross Margin91.12%
Net Profit Margin4.11%
Debt/Equity Ratio13.1%

How did NET perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

47%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NET undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NET?

Other financial metrics that can be useful for relative valuation.

NET key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.8x
Enterprise Value/EBITDA36.2x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does NET's PE Ratio compare to its peers?

NET PE Ratio vs Peers
The above table shows the PE ratio for NET vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average56.7x
OMG Oxford Metrics
41.6xn/aUK£108.4m
GHT Gresham Technologies
104.2xn/aUK£115.9m
QTX Quartix Technologies
31.1x7.0%UK£159.7m
ZOO ZOO Digital Group
49.8x42.0%UK£121.7m
NET Netcall
98.1xn/aUK£114.8m

Price-To-Earnings vs Peers: NET is expensive based on its Price-To-Earnings Ratio (98.1x) compared to the peer average (56.7x).


Price to Earnings Ratio vs Industry

How does NET's PE Ratio compare vs other companies in the GB Software Industry?

Price-To-Earnings vs Industry: NET is expensive based on its Price-To-Earnings Ratio (98.1x) compared to the UK Software industry average (35.9x)


Price to Earnings Ratio vs Fair Ratio

What is NET's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NET PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio98.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NET's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of NET when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NET (£0.77) is trading above our estimate of fair value (£0.57)

Significantly Below Fair Value: NET is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Netcall forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.1%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NET's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if NET's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if NET's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NET's revenue (16.1% per year) is forecast to grow faster than the UK market (4.6% per year).

High Growth Revenue: NET's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NET's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Netcall performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-2.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NET has a large one-off loss of £344.0K impacting its December 31 2021 financial results.

Growing Profit Margin: NET's current net profit margins (4.1%) are lower than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: NET's earnings have declined by 2.8% per year over the past 5 years.

Accelerating Growth: NET's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NET had negative earnings growth (-33.6%) over the past year, making it difficult to compare to the Software industry average (3.4%).


Return on Equity

High ROE: NET's Return on Equity (4.5%) is considered low.


Discover strong past performing companies

Financial Health

How is Netcall's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NET's short term assets (£17.9M) do not cover its short term liabilities (£19.7M).

Long Term Liabilities: NET's short term assets (£17.9M) exceed its long term liabilities (£4.5M).


Debt to Equity History and Analysis

Debt Level: NET has more cash than its total debt.

Reducing Debt: Insufficient data to determine if NET's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: NET's debt is well covered by operating cash flow (132.3%).

Interest Coverage: NET's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


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Dividend

What is Netcall current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.48%

Current Dividend Yield

Dividend Yield vs Market

Netcall Dividend Yield vs Market
How does Netcall dividend yield compare to the market?
SegmentDividend Yield
Company (Netcall)0.5%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)5.9%
Industry Average (Software)1.8%
Analyst forecast in 3 Years (Netcall)0.8%

Notable Dividend: NET's dividend (0.48%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.09%).

High Dividend: NET's dividend (0.48%) is low compared to the top 25% of dividend payers in the UK market (5.9%).


Stability and Growth of Payments

Stable Dividend: NET is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: NET is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: NET is not paying a notable dividend for the UK market.


Cash Payout to Shareholders

Cash Flow Coverage: NET is not paying a notable dividend for the UK market.


Discover strong dividend paying companies

Management

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

12.1yrs

Average management tenure


CEO

Henrik Bang (64 yo)

18.58yrs

Tenure

UK£619,000

Compensation

Mr. Henrik Peter Bang has been the Chief Executive Officer of Netcall PLC since February 13, 2004. He served as the Vice President of EMEA at GN Netcom, a subsidiary of GN Great Nordic from 1999 to 2004. F...


CEO Compensation Analysis

Henrik Bang's Compensation vs Netcall Earnings
How has Henrik Bang's remuneration changed compared to Netcall's earnings?
DateTotal Comp.SalaryCompany Earnings
Dec 31 2021n/an/a

UK£1m

Sep 30 2021n/an/a

UK£1m

Jun 30 2021UK£619kUK£299k

UK£974k

Mar 31 2021n/an/a

UK£1m

Dec 31 2020n/an/a

UK£2m

Sep 30 2020n/an/a

UK£1m

Jun 30 2020UK£535kUK£298k

UK£487k

Mar 31 2020n/an/a

UK£422k

Dec 31 2019n/an/a

UK£356k

Sep 30 2019n/an/a

UK£483k

Jun 30 2019UK£406kUK£292k

UK£610k

Mar 31 2019n/an/a

UK£428k

Dec 31 2018n/an/a

UK£246k

Sep 30 2018n/an/a

UK£191k

Jun 30 2018UK£365kUK£282k

UK£136k

Mar 31 2018n/an/a

UK£480k

Dec 31 2017n/an/a

UK£823k

Sep 30 2017n/an/a

UK£1m

Jun 30 2017UK£322kUK£273k

UK£1m

Mar 31 2017n/an/a

UK£2m

Dec 31 2016n/an/a

UK£2m

Sep 30 2016n/an/a

UK£2m

Jun 30 2016UK£459kUK£265k

UK£2m

Compensation vs Market: Henrik's total compensation ($USD665.48K) is above average for companies of similar size in the UK market ($USD326.24K).

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


Leadership Team

Experienced Management: NET's management team is seasoned and experienced (12.1 years average tenure).


Board Members

Experienced Board: NET's board of directors are seasoned and experienced ( 12.2 years average tenure).


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.


Ownership Breakdown

What is the ownership structure of NET?
Owner TypeNumber of SharesOwnership Percentage
Public Companies155,0000.1%
Private Companies2,532,5291.7%
General Public4,128,1182.8%
Individual Insiders24,402,33416.3%
VC/PE Firms37,168,94724.8%
Institutions81,631,86154.4%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 93.13% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
24.78%
Gresham House Asset Management Limited
37,168,947£28.4m6.61%3.64%
13.41%
Liontrust Asset Management PLC
20,112,945£15.4m3.26%0.08%
11.01%
Investec Wealth & Investment Limited
16,514,979£12.6m16.61%0.13%
4.37%
Richard Sneller
6,549,500£5.0m0%no data
4.37%
Richard Sneller
6,549,500£5.0m0%no data
4.3%
Charles Stanley & Co. Ltd, Asset Management Arm
6,458,213£4.9m-0.38%0.05%
4.13%
Henrik Bang
6,191,120£4.7m0%no data
3.46%
Octopus Investments Limited
5,197,120£4.0m1.49%0.21%
2.66%
Fleming Family & Partners Ltd.
3,989,557£3.1m0%0.14%
2.07%
SEI Investments Company
3,100,096£2.4m-25.3%no data
1.87%
Brewin Dolphin Limited
2,804,848£2.1m-4.76%0.02%
1.64%
FNZ (UK) Ltd
2,456,862£1.9m0%no data
1.61%
Killik Asset Management
2,410,644£1.8m7.13%0.11%
1.6%
A J Bell Holdings Limited, Asset Management Arm
2,398,285£1.8m-14.35%0.03%
1.6%
James Ormondroyd
2,397,869£1.8m0%no data
1.56%
Smith & Williamson Investment Management LLP
2,339,669£1.8m0.33%0.03%
1.54%
Investment Fund Services Limited
2,305,283£1.8m0%no data
1.44%
Herald Investment Management Limited
2,162,000£1.7m0%0.19%
1.35%
Michael Edward Jackson
2,027,780£1.6m0%no data
1.08%
HBOS Investment Fund Managers Limited
1,612,765£1.2m-7.14%0.01%
1.02%
HSBC Global Asset Management (UK) Limited
1,531,605£1.2m-4.92%no data
0.67%
Beringea, LLC
998,463£763.8k0%100%
0.65%
Barclays Bank PLC, Wealth and Investment Management Division
973,580£744.8k-1.51%0.01%
0.52%
Goldman Sachs Group, Investment Banking and Securities Investments
775,000£592.9k3.33%no data
0.46%
Michael Neville
686,565£525.2k0%no data

Company Information

Netcall plc's employee growth, exchange listings and data sources


Key Information

  • Name: Netcall plc
  • Ticker: NET
  • Exchange: AIM
  • Founded: 1984
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: UK£114.764m
  • Shares outstanding: 150.02m
  • Website: https://www.netcall.com

Number of Employees


Location

  • Netcall plc
  • Bedford Heights
  • Suite 203
  • Bedford
  • Bedfordshire
  • MK41 7PH
  • United Kingdom


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NETAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.