NOWVertical Group

NOW.V

Software - Application · Technology

Price

C$0.10

-0.00 (-0.00%)

Market Cap

C$9.1M

Exchange

Toronto Stock Exchange Ventures

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+138.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 40.1M (2021) → 95.8M (2025)

NOWVertical Group is a Canadian technology company that buys and operates small software and data analytics businesses. Its subsidiaries serve clients in industries like government, healthcare, and commercial sectors, helping them make sense of large amounts of data. The company is a "buy and build" acquirer, meaning it grows mainly by purchasing existing software firms rather than building products from scratch.

Revenue comes from a mix of software licenses, professional services, and recurring subscription contracts across its portfolio of acquired companies. NOWVertical operates primarily in North America and is a small-cap company with a market cap under $100 million. Its gross margin near 50% is reasonable for software, but its thin operating margin of under 3% signals that integration costs and overhead are eating into profits. The main risk is execution: acquiring and successfully combining multiple small software businesses is difficult, and any stumble in integration or a slowdown in deal flow could pressure growth.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-7.6% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+106.7% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$98,911/ year

↓ Declining (-75% vs prior year)

0.3% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

48.1%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$9M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

NOWVertical Group's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

46.3%

Healthy — 46.3% gross margin

Operating Margin

12.0%

Modest — 12.0% operating margin

ROCE

5.8%

Weak — 5.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

-17.5%

Shrinking sales (-17.5% YoY)

EPS YoY

-210.9%

Earnings shrinking (-210.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

3.2%

Thin free cash flow (3.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

5.18

Heavy debt load (5.18)

Interest Cover

0.57x

Dangerous — barely covers interest (0.6x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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