NetClass Technology Inc (NASDAQ: NTCL)

Sector: Technology Industry: Software - Application CIK: 0001927578
Market Cap 5.59 Mn
P/B 0.97
P/E -0.52
P/S 0.57
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 2.71 Mn
Debt/Equity (Qtr) 0.47
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About

Investment thesis

Bull case

  • Operating cash flow of (5.72M) provides exceptional 136.77x coverage of minority interest expenses (41814), showing strong core operations.
  • Strong tangible asset base of 12.70M provides 4.68x coverage of total debt 2.71M, indicating robust asset backing and low credit risk.
  • Cash reserves of 1.76M provide ample 101.79x coverage of acquisition spending 17328, enabling strategic growth opportunities.
  • Tangible assets of 12.70M provide robust 4.08x coverage of other current liabilities 3.11M, indicating strong asset backing.
  • Robust tangible asset base of 12.70M provides 6.34x coverage of working capital 2M, indicating strong operational backing.

Bear case

  • Investment activities of (2.29M) provide weak support for R&D spending of 1.68M, which is -1.36x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (5.72M) shows concerning coverage of stock compensation expenses of 2.09M, with a -2.73 ratio indicating potential earnings quality issues.
  • High receivables of 5.58M relative to inventory of 305741 (18.25 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (5.72M) provides weak coverage of capital expenditures of 3693, with a -1549.56 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (10.91M) show weak coverage of depreciation charges of 315259, with a -34.61 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 235.43 Bn 27.31 5.44 9.50 Bn
2 SHOP Shopify Inc. 147.12 Bn 119.52 12.73 0.19 Bn
3 UBER Uber Technologies, Inc 147.10 Bn 14.63 2.83 12.08 Bn
4 CRM Salesforce, Inc. 122.20 Bn 594.48 15.45 11.14 Bn
5 INTU Intuit Inc. 113.93 Bn 178.01 32.63 6.78 Bn
6 ADBE Adobe Inc. 111.00 Bn 15.57 4.67 6.65 Bn
7 NOW ServiceNow, Inc. 109.54 Bn 62.67 8.25 2.40 Bn
8 ADP Automatic Data Processing Inc 86.44 Bn 20.41 4.07 4.37 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.26 2.08
EV to Cash from Ops. EV/CFO -0.64 11.38
EV to Debt EV to Debt 1.35 47.67
EV to EBIT EV/EBIT -0.34 6.78
EV to EBITDA EV/EBITDA -0.34 7.15
EV to Free Cash Flow [EV/FCF] EV/FCF -0.64 14.44
EV to Market Cap EV to Market Cap 0.65 -8.88
EV to Revenue EV/Rev 0.37 4.04
Price to Book Value [P/B] P/B 0.97 3.65
Price to Earnings [P/E] P/E -0.52 -117.75
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -4.05
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 4.38
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 2.48
Interest Coverage Interest Coverage 0.00 -43.57
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -222.46
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 324.75 281.53
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.78
EBIAT Growth (1y) % EBIAT Growth (1y) % -632.47 -327.55
EBITDA Growth (1y) % EBITDA Growth (1y) % -759.24 30.09
EBIT Growth (1y) % EBIT Growth (1y) % -684.14 -213.00
EBT Growth (1y) % EBT Growth (1y) % -684.14 -86.84
EPS Growth (1y) % EPS Growth (1y) % -566.67 108.58
FCF Growth (1y) % FCF Growth (1y) % -4,118.43 6.29
Gross Profit Growth (1y) % Gross Profit Growth (1y) % -3.22 94.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Utilization Ratio 0.71 0.58
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.26 3.78
Current Ratio Curr Ratio (Qtr) 1.29 8.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.47 0.14
Interest Cover Ratio Interest Cover Ratio 0.00 -43.57
Times Interest Earned Times Interest Earned 0.00 -43.57
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % -108.10 -105.03
EBIT Margin % EBIT Margin % -111.28 -130.16
EBT Margin % EBT Margin % -111.28 -121.17
Gross Margin % Gross Margin % 22.80 58.37
Net Profit Margin % Net Profit Margin % -110.40 -126.13