$NCI.v named one of the Best 5 penny stocks to buy 2023NTG Clarity Networks’ unacknowledged profitability
NTG Clarity Networks has an over 20 year history in the delivery of network, telecom, IT and infrastructure solutions to network service providers and enterprises of all sizes. The company maintains a presence in Toronto, Egypt, Saudi Arabia, Qatar and Oman with a staff of over 400 people among the top ranks in the telecom industry.
NTG’s suite of solutions spans custom digital app templates, ecommerce, WiFi, Internet of Things, last-mile delivery, and the management of project portfolios, workflows, inventory, assets, and customer and partner relationships.
As a provider of behind-the-scenes equipment and services that help businesses run, NTG does not garner the kind of media attention that leads to immediate value recognition. Case in point, it turned to profitability in 2021 with net income of C$1.37 million and hasn’t stopped since, taking home C$1.25 million in 2022, C$1.09 million in Q1 2023, and C$870,000 in Q2 2023, while consistently increasing revenue over the past three years and keeping debt well-covered by operating cash flow. But NCI shares, for their part, have not rewarded investors for holding a well-run business, having endured a 12.5 per cent loss since 2018.
This mismatch between strong financials and market recognition sits at the core of what it means to be a value investor, who must be willing to put their chips on favorable metrics over present-day sentiment to achieve worthwhile returns. Judging by NTG’s record Q1 and Q2 2023 revenue, its increasingly large-scale contracts, and increasing demand in the Gulf Region because of high oil prices, the company’s future is looking like one of shareholder value creation, despite recent share performance.