Q: Please comment on the year end results. This company is doing a lot of things right.
5i Research Answer:
NCI remains small at $75M market cap, even after a 300%+ one year gain. It is growing and profitable, and very cheap at 9X earnings. Cash flow is pretty low, and only one analyst covers it. Insiders own 27% and it is a business that does not require a lot of capital (consulting). The balance sheet is fine. Considering its size and the market, its 5% gain this year is impressive. Revenue rose 102% last year. Income showed good growth as margins improved. Backlog is $105M, representing more than one year of revenue. Guidance was good. Things are clicking along nicely here and the stock is getting notice.