# NCC Group (NCC.LSE)

Canonical: https://gigainvestors.com/s/NCC.LSE

Analysis as of: 2026-10-16T07:49:11.863Z. Financial observations: FY2004–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 153.60 per share; close as of 2026-10-15.

Estimated value: low GBX 105.87 per share, central GBX 119.97 per share, high GBX 138.73 per share. Buy at or below the central value GBX 119.97 per share. Valuation as of 2026-10-16T07:49:11.863Z; scenarios are not confidence intervals.

Expected annual return: 8.4% at the stated quote. About 8.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 3

- Operating margin variation: 1.20×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.07×

- FY2018: 0.09×

- FY2019: 0.09×

- FY2020: 0.08×

- FY2021: 0.11×

- FY2022: 0.11×

- FY2023: 0.05×

- FY2024: 0.06×

- FY2025: -0.03×

- FY2026: -0.10×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 4.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 18.3%

- ROIC, second-lowest year: -3.7%

- Typical minus recent gross margin: 4.9 pp

- Typical gross margin (annual median): 33.1%

- Recent gross margin (lower of latest and 3-year median): 28.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.2%

- ROIC including acquisitions, ten-year median: 6.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 12.5%

- FY2018: 27.1%

- FY2019: 24.3%

- FY2020: 26.0%

- FY2021: 60.9%

- FY2022: 23.0%

- FY2023: 13.6%

- FY2024: 11.1%

- FY2025: -3.7%

- FY2026: -9.1%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 4.86×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 59M

- Net income, five-year total: GBP 12M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -2.1 pp

- Working capital / revenue, change between three-year averages: -14.5 pp

- Working capital / revenue, final three-year average: 4.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.22×

- FY2023: -1.02×

- FY2024: 0.51×

- FY2025: 1.67×

- FY2026: 1.57×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 24.3% vs -3.7%

- Per-share earnings: 0.02 to 0.03 (three-year endpoint medians)

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.0%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: GBP -108M

- Cumulative retained earnings: GBP -75M

- Diluted shares, 10-year annual growth: 1.0%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 3.5%

- Per-share value change: GBP 0.01

- Per-share value, starting three-year median: GBP 0.02

- Per-share value, ending three-year median: GBP 0.03

- Buybacks concentrated in cheaper years (correlation): 0.00

- Average buyback yield: 2.7%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: GBP 342M

- Cumulative net income, 10 years: GBP 7.3M

- ROIC, first three-year median: 24.3%

- ROIC, last three-year median: -3.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP -0.17

- FY2018: GBP 0.04

- FY2019: GBP 0.05

- FY2020: GBP 0.02

- FY2021: GBP 0.03

- FY2022: GBP 0.07

- FY2023: GBP -0.01

- FY2024: GBP -0.10

- FY2025: GBP 0.05

- FY2026: GBP 0.03

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -8.8%

- Receivables to sales index (DSRI): 1.89×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.53×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.29×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -20.2%

- FY2018: -5.9%

- FY2019: -7.6%

- FY2020: -9.3%

- FY2021: -6.7%

- FY2022: -5.5%

- FY2023: -7.3%

- FY2024: -14.0%

- FY2025: -4.8%

- FY2026: -8.8%

## Holders

## Price story

Down 38% since Oct 2021 · "Increased cost base eroding margins." (NCC filing, Jan 2026) · sales -16.1%

Story as of 2026-10-16T10:00:13.785Z; price observation 2026-10-15.

Price needs cash profits to grow 4.1% a year for ten years

### Sales · FY2025–2026

sales -16.1%; source https://filings.xbrl.org/213800DJCGZRB6523934/2025-09-30/ESEF/GB/0/213800DJCGZRB6523934-2025-09-30/reports/213800DJCGZRB6523934-2025-09-30-T01.xhtml; observed 2026-01-08.

- FY2017: GBP 215M 

- FY2018: GBP 233M 

- FY2019: GBP 251M 

- FY2020: GBP 264M 

- FY2021: GBP 271M 

- FY2022: GBP 315M 

- FY2023: GBP 335M 

- FY2024: GBP 322M 

- FY2025: GBP 239M 

- FY2026: GBP 201M 

### Gross margin · FY2026

gross margin 28.2%; source https://filings.xbrl.org/213800DJCGZRB6523934/2025-09-30/ESEF/GB/0/213800DJCGZRB6523934-2025-09-30/reports/213800DJCGZRB6523934-2025-09-30-T01.xhtml; observed 2026-01-08.

- FY2017: 36.3% 

- FY2018: 41.2% 

- FY2019: 40.6% 

- FY2020: 30.6% 

- FY2021: 33.6% 

- FY2022: 35.9% 

- FY2023: 32.6% 

- FY2024: 29.9% 

- FY2025: 28.6% 

- FY2026: 28.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are GBP 200.5 million.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2026-03-31 (filed 2026-01-08); FY2026: revenue 200500000; grossProfit 56500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NCC.LSE: NCC Group plc engages in the cyber security and software resilience business in the United Kingdom, the Asian-Pacific, North America, and Europe. The company operates through two segments, Cyber Security and Escode. It offers incident readiness, cyber incident response management and retainer, incident response recovery, penetration testing services, application security, social engineering prevention, hardware and embedded services, network infrastructure, architecture and container security, attack simulation, cryptography and encryption, cloud security services, cyber services portal, managed extended detection and response, network detection and response, unified cyber platform, vulnerability scanning and management, bug bounty and vulnerability disclosure, and external attack surface management services. The company also provides identity and access management, operational technology, training and awareness, strategy, risk and compliance, and project and program management; online exposure monitoring and digital footprint reveiw; and Escode solutions, including software Escrow, SaaS Escrow, and Escrow agreement and verification solution. The company serves financial, transport, health, legal and professional, technology, media and telecommunication, retail and consumer, energy and utilities, public and government, and manufacturing sectors. NCC Group plc was founded in 1999 and is headquartered in Manchester, the United Kingdom.

### Why customers stay

Margins ranged from 28.2% to 29.9% during 2024–26; it earns 18.3% on its capital.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2024-05-31 (filed 2026-01-08); FY2024: grossProfit / revenue = 29.9%.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2025-09-30 (filed 2026-01-08); FY2025: grossProfit / revenue = 28.6%.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2026-03-31 (filed 2026-01-08); FY2026: grossProfit / revenue = 28.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); 10-year return on capital observations [[2017,0.12527508090614886],[2018,0.2712082262210797],[2019,0.24299116395767426],[2020,0.2596618357487923],[2021,0.6088937774984287],[2022,0.22966245575666885],[2023,0.13631372549019607],[2024,0.11065808823529412],[2025,-0.03706744868035191],[2026,-0.09134805345729227]]; median 0.18298809062343246. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 33 million of shares.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2018-05-31 (filed 2026-01-08); FY2018: growth capex 0; upkeep 7700000; owner earnings 26000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2019-05-31 (filed 2026-01-08); FY2019: growth capex 0; upkeep 3000000; owner earnings 29500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2020-05-31 (filed 2026-01-08); FY2020: growth capex 0; upkeep 13200000; owner earnings 9160000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2021-05-31 (filed 2026-01-08); FY2021: growth capex 0; upkeep 4800000; owner earnings 18020000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2022-05-31 (filed 2026-01-08); FY2022: growth capex 0; upkeep 8200000; cash acquisitions 153000000; owner earnings 27980000. Growth capex plus acquisitions / owner earnings = 5.46819156540386.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2023-05-31 (filed 2026-01-08); FY2023: growth capex 0; upkeep 7300000; cash acquisitions 0; owner earnings 4700000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2025-09-30 (filed 2026-01-08); FY2025: growth capex 0; upkeep 4700000; cash acquisitions 0; owner earnings 28500000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2026-03-31 (filed 2026-01-08); FY2026: growth capex 0; upkeep 4400000; owner earnings 14300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); Dividend observations: [[2017,12800000],[2018,12800000],[2019,12900000],[2020,12900000],[2021,13000000],[2022,14400000],[2023,14500000],[2024,14500000],[2025,19000000],[2026,9200000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/NCC.LSE.json#2026-03-31 (filed 2026-01-08); FY2026: cash repurchases 33000000 GBP.

### Are managers owners

Insiders own 14.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); NCC.LSE SharesStats.PercentInsiders = 14.338999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.1% yearly over ten years; actual growth was 0.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-08); Ten-year compound average after fade. Initial solved rate 0.04540226684240867. Price 153.6; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.043729361091170135 → FY2026 0.04656463692608271. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 189.50 per share

- 2016-11: GBX 188.00 per share

- 2016-12: GBX 180.75 per share

- 2017-01: GBX 185.25 per share

- 2017-02: GBX 118.00 per share

- 2017-03: GBX 133.00 per share

- 2017-04: GBX 142.50 per share

- 2017-05: GBX 165.50 per share

- 2017-06: GBX 163.75 per share

- 2017-07: GBX 194.00 per share

- 2017-08: GBX 186.00 per share

- 2017-09: GBX 216.50 per share

- 2017-10: GBX 230.00 per share

- 2017-11: GBX 221.50 per share

- 2017-12: GBX 234.00 per share

- 2018-01: GBX 201.00 per share

- 2018-02: GBX 198.80 per share

- 2018-03: GBX 188.10 per share

- 2018-04: GBX 196.60 per share

- 2018-05: GBX 212.60 per share

- 2018-06: GBX 204.80 per share

- 2018-07: GBX 219.80 per share

- 2018-08: GBX 220.00 per share

- 2018-09: GBX 200.00 per share

- 2018-10: GBX 196.60 per share

- 2018-11: GBX 187.80 per share

- 2018-12: GBX 175.30 per share

- 2019-01: GBX 128.50 per share

- 2019-02: GBX 123.00 per share

- 2019-03: GBX 140.00 per share

- 2019-04: GBX 174.60 per share

- 2019-05: GBX 165.60 per share

- 2019-06: GBX 163.60 per share

- 2019-07: GBX 184.80 per share

- 2019-08: GBX 176.60 per share

- 2019-09: GBX 174.20 per share

- 2019-10: GBX 187.40 per share

- 2019-11: GBX 206.50 per share

- 2019-12: GBX 225.50 per share

- 2020-01: GBX 215.00 per share

- 2020-02: GBX 207.50 per share

- 2020-03: GBX 166.00 per share

- 2020-04: GBX 163.40 per share

- 2020-05: GBX 153.40 per share

- 2020-06: GBX 177.40 per share

- 2020-07: GBX 169.00 per share

- 2020-08: GBX 180.00 per share

- 2020-09: GBX 176.00 per share

- 2020-10: GBX 182.60 per share

- 2020-11: GBX 196.20 per share

- 2020-12: GBX 252.00 per share

- 2021-01: GBX 247.00 per share

- 2021-02: GBX 262.50 per share

- 2021-03: GBX 258.00 per share

- 2021-04: GBX 271.50 per share

- 2021-05: GBX 296.00 per share

- 2021-06: GBX 294.00 per share

- 2021-07: GBX 314.50 per share

- 2021-08: GBX 323.00 per share

- 2021-09: GBX 257.00 per share

- 2021-10: GBX 248.50 per share

- 2021-11: GBX 229.00 per share

- 2021-12: GBX 233.50 per share

- 2022-01: GBX 190.00 per share

- 2022-02: GBX 187.60 per share

- 2022-03: GBX 182.60 per share

- 2022-04: GBX 183.00 per share

- 2022-05: GBX 215.00 per share

- 2022-06: GBX 187.20 per share

- 2022-07: GBX 222.50 per share

- 2022-08: GBX 196.00 per share

- 2022-09: GBX 218.50 per share

- 2022-10: GBX 199.00 per share

- 2022-11: GBX 213.00 per share

- 2022-12: GBX 200.00 per share

- 2023-01: GBX 187.80 per share

- 2023-02: GBX 170.40 per share

- 2023-03: GBX 102.20 per share

- 2023-04: GBX 107.40 per share

- 2023-05: GBX 90.90 per share

- 2023-06: GBX 96.70 per share

- 2023-07: GBX 96.50 per share

- 2023-08: GBX 99.70 per share

- 2023-09: GBX 118.00 per share

- 2023-10: GBX 106.60 per share

- 2023-11: GBX 121.40 per share

- 2023-12: GBX 128.80 per share

- 2024-01: GBX 121.20 per share

- 2024-02: GBX 126.40 per share

- 2024-03: GBX 124.40 per share

- 2024-04: GBX 135.60 per share

- 2024-05: GBX 139.60 per share

- 2024-06: GBX 152.60 per share

- 2024-07: GBX 147.60 per share

- 2024-08: GBX 154.60 per share

- 2024-09: GBX 178.20 per share

- 2024-10: GBX 154.40 per share

- 2024-11: GBX 158.80 per share

- 2024-12: GBX 150.60 per share

- 2025-01: GBX 142.80 per share

- 2025-02: GBX 130.40 per share

- 2025-03: GBX 139.00 per share

- 2025-04: GBX 147.20 per share

- 2025-05: GBX 156.20 per share

- 2025-06: GBX 145.00 per share

- 2025-07: GBX 150.40 per share

- 2025-08: GBX 145.40 per share

- 2025-09: GBX 147.80 per share

- 2025-10: GBX 149.40 per share

- 2025-11: GBX 148.40 per share

- 2025-12: GBX 139.20 per share

- 2026-01: GBX 140.40 per share

- 2026-02: GBX 132.60 per share

- 2026-03: GBX 115.80 per share

- 2026-04: GBX 120.80 per share

- 2026-05: GBX 142.60 per share

- 2026-06: GBX 120.60 per share

- 2026-07: GBX 141.00 per share

- 2026-08: GBX 145.00 per share

- 2026-09: GBX 147.80 per share

- 2026-10: GBX 153.60 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 122.98 per share, central GBX 159.01 per share, high GBX 185.47 per share

- FY2018: low GBX 120.35 per share, central GBX 154.20 per share, high GBX 179.30 per share

- FY2019: low GBX 118.90 per share, central GBX 133.84 per share, high GBX 153.72 per share

- FY2020: low GBX 91.66 per share, central GBX 99.90 per share, high GBX 110.86 per share

- FY2021: low GBX 98.99 per share, central GBX 107.72 per share, high GBX 119.33 per share

- FY2022: low GBX 119.89 per share, central GBX 133.45 per share, high GBX 151.51 per share

- FY2023: low GBX 87.21 per share, central GBX 98.02 per share, high GBX 112.41 per share

- FY2024: low GBX 46.75 per share, central GBX 52.16 per share, high GBX 59.36 per share

- FY2025: low GBX 58.17 per share, central GBX 65.85 per share, high GBX 76.08 per share

- FY2026: low GBX 52.72 per share, central GBX 59.73 per share, high GBX 69.08 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800DJCGZRB6523934/2025-09-30/ESEF/GB/0/213800DJCGZRB6523934-2025-09-30/reports/213800DJCGZRB6523934-2025-09-30-T01.xhtml); period 2025-09-30, filed 2026-01-08.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.