# Netcall plc (NET.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Technology / Software. Price 115p, market value 196 millionp.

## Valuation
- **P/E (trailing): 115.0×** (5-yr avg 5667.4×, 3-yr avg 3825.5×). Netcall plc trades at 115.0× trailing earnings, well below its own five-year average of 5667.4×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 22.2×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.1×**. Each dollar of revenue is priced at 2.1×.
- **Price / book: 4.0×**. The shares trade at 4.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 9.7×**. Enterprise value is 9.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 10.2%** (5-yr avg 0.1%). Free cash flow equals 10.2% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 0.9%**. The inverse of the P/E: 0.9% of the price is earned each year.

## Profitability
- **Gross margin: 76.7%**. Netcall plc keeps 76.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 12.4%**. 12.4% of revenue is left after running the business.
- **Net margin: 8.4%**. 8.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.2%**. 9.2% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 49.3%**. Return on all capital, debt included, is 49.3%: comfortably above what that capital costs.
- **Return on assets: 8.6%**. Each dollar of assets produces 8.6% of profit.

## Growth
- **Revenue growth (1 yr): 22.8%** (3-yr 16.3%/yr, 5-yr 13.8%/yr). Revenue grew 22.8% over the last year, against 13.8% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -30.3%** (3-yr 16.6%/yr, 5-yr 48.8%/yr). Earnings per share fell 30.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 7.9%/yr**. Free cash flow has compounded at 7.9% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.02**. Debt is 0.02 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Netcall plc holds more cash than debt.
- **Interest coverage: 50.2×**. Operating profit covers interest 50.2× over, a safe margin.
- **Current ratio: 0.86** (quick 0.86). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 4.01**. A Z-score of 4.01 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.83%** (0p per share, trailing). Netcall plc yields 0.83%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 36%** (14% of free cash flow). 36% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 30.3%/yr** (1-yr 5.6%). The dividend has compounded at 30.3% a year over five years, doubling roughly every 2 years at that pace.
- **Shareholder yield: 0.7%**. Dividends plus net buybacks return 0.7% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (3 analysts). 3 analysts cover Netcall plc; the consensus is strong_buy, with an average price target of 165p (+44% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 1.1%** (YTD 4.7%, 3-mo -8.9%). The shares are up 1.1% over twelve months including dividends.
- **From 52-week high: -16.7%** (22.2% above the low). Trading 17% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 36**. An RSI of 36 is neutral.
- **Beta (1 yr): 0.18** (volatility 26%). Beta of 0.18 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NET.L · Page: https://foliofundamentals.com/stocks/net.l

Not investment advice.