DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
Canada - TSX:DCM - CA23761M1023 - Common Stock
1.44 CAD
-0.01 (-0.69%)
DCM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 24 industry peers in the Commercial Services & Supplies industry. While DCM belongs to the best of the industry regarding profitability, there are concerns on its financial health. DCM scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year DCM was profitable.
In the past year DCM had a positive cash flow from operations.
Of the past 5 years DCM 4 years were profitable.
Each year in the past 5 years DCM had a positive operating cash flow.
1.2 Ratios
DCM has a Return On Assets (1.82%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 19.17%, DCM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.78%, DCM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
DCM had an Average Return On Invested Capital over the past 3 years of 13.16%. This is significantly above the industry average of 7.32%.
The last Return On Invested Capital (8.78%) for DCM is well below the 3 year average (13.16%), which needs to be investigated, but indicates that DCM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 19.17% | ||
| ROIC | 8.78% |
ROA(3y)2.16%
ROA(5y)2.92%
ROE(3y)4.98%
ROE(5y)29.88%
ROIC(3y)13.16%
ROIC(5y)12.14%
1.3 Margins
The Profit Margin of DCM (1.48%) is better than 62.50% of its industry peers.
DCM's Profit Margin has improved in the last couple of years.
DCM has a Operating Margin of 8.40%. This is in the better half of the industry: DCM outperforms 70.83% of its industry peers.
DCM's Operating Margin has improved in the last couple of years.
DCM's Gross Margin of 27.07% is in line compared to the rest of the industry. DCM outperforms 58.33% of its industry peers.
DCM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.4% | ||
| PM (TTM) | 1.48% | ||
| GM | 27.07% |
OM growth 3Y13.19%
OM growth 5Y62.33%
PM growth 3Y3.8%
PM growth 5YN/A
GM growth 3Y-2.84%
GM growth 5Y2.04%
2. Health
2.1 Basic Checks
DCM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, DCM has more shares outstanding
DCM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DCM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.96, we must say that DCM is in the distress zone and has some risk of bankruptcy.
DCM has a Altman-Z score of 0.96. This is in the lower half of the industry: DCM underperforms 62.50% of its industry peers.
DCM has a debt to FCF ratio of 58.28. This is a negative value and a sign of low solvency as DCM would need 58.28 years to pay back of all of its debts.
DCM's Debt to FCF ratio of 58.28 is in line compared to the rest of the industry. DCM outperforms 45.83% of its industry peers.
DCM has a Debt/Equity ratio of 6.79. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DCM (6.79) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.79 | ||
| Debt/FCF | 58.28 | ||
| Altman-Z | 0.96 |
ROIC/WACC1.42
WACC6.18%
2.3 Liquidity
DCM has a Current Ratio of 1.77. This is a normal value and indicates that DCM is financially healthy and should not expect problems in meeting its short term obligations.
DCM has a Current ratio of 1.77. This is in the better half of the industry: DCM outperforms 70.83% of its industry peers.
DCM has a Quick Ratio of 1.44. This is a normal value and indicates that DCM is financially healthy and should not expect problems in meeting its short term obligations.
DCM's Quick ratio of 1.44 is fine compared to the rest of the industry. DCM outperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 222.64% over the past year.
The Earnings Per Share has been growing by 22.16% on average over the past years. This is a very strong growth
The Revenue has decreased by -8.92% in the past year.
DCM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.15% yearly.
EPS 1Y (TTM)222.64%
EPS 3Y22.16%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-8.92%
Revenue growth 3Y26.82%
Revenue growth 5Y11.15%
Sales Q2Q%-9.51%
3.2 Future
The Earnings Per Share is expected to grow by 38.29% on average over the next years. This is a very strong growth
Based on estimates for the next years, DCM will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y155.31%
EPS Next 2Y8.55%
EPS Next 3Y57.59%
EPS Next 5Y38.29%
Revenue Next Year13.13%
Revenue Next 2Y12.14%
Revenue Next 3Y5.2%
Revenue Next 5Y3.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DCM is valuated cheaply with a Price/Earnings ratio of 7.20.
DCM's Price/Earnings ratio is rather cheap when compared to the industry. DCM is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, DCM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.79, the valuation of DCM can be described as very cheap.
95.83% of the companies in the same industry are more expensive than DCM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.88. DCM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.2 | ||
| Fwd PE | 6.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DCM indicates a rather cheap valuation: DCM is cheaper than 95.83% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DCM indicates a somewhat cheap valuation: DCM is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.59 | ||
| EV/EBITDA | 5.17 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of DCM may justify a higher PE ratio.
A more expensive valuation may be justified as DCM's earnings are expected to grow with 57.59% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y8.55%
EPS Next 3Y57.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.54%, DCM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.34, DCM pays a better dividend. On top of this DCM pays more dividend than 100.00% of the companies listed in the same industry.
DCM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
5.2 History
DCM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y8.55%
EPS Next 3Y57.59%
TSX:DCM (9/18/2025, 7:00:00 PM)
1.44
-0.01 (-0.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners14.79%
Inst Owner ChangeN/A
Ins Owners22.78%
Ins Owner ChangeN/A
Market Cap79.66M
Analysts85.71
Price Target3.4 (136.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)106.12%
Min EPS beat(2)35.01%
Max EPS beat(2)177.23%
EPS beat(4)2
Avg EPS beat(4)12.06%
Min EPS beat(4)-100%
Max EPS beat(4)177.23%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.46%
Min Revenue beat(2)-5.08%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-9.79%
Min Revenue beat(4)-19.37%
Max Revenue beat(4)0.17%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-14.9%
PT rev (3m)-9.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-113.16%
EPS NY rev (1m)0%
EPS NY rev (3m)48.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.2 | ||
| Fwd PE | 6.79 | ||
| P/S | 0.17 | ||
| P/FCF | 17.59 | ||
| P/OCF | 6.24 | ||
| P/B | 2.23 | ||
| P/tB | 14.63 | ||
| EV/EBITDA | 5.17 |
EPS(TTM)0.2
EY13.89%
EPS(NY)0.21
Fwd EY14.73%
FCF(TTM)0.08
FCFY5.68%
OCF(TTM)0.23
OCFY16.02%
SpS8.36
BVpS0.65
TBVpS0.1
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 19.17% | ||
| ROCE | 12.9% | ||
| ROIC | 8.78% | ||
| ROICexc | 8.87% | ||
| ROICexgc | 9.87% | ||
| OM | 8.4% | ||
| PM (TTM) | 1.48% | ||
| GM | 27.07% | ||
| FCFM | 0.98% |
ROA(3y)2.16%
ROA(5y)2.92%
ROE(3y)4.98%
ROE(5y)29.88%
ROIC(3y)13.16%
ROIC(5y)12.14%
ROICexc(3y)13.81%
ROICexc(5y)12.57%
ROICexgc(3y)17.33%
ROICexgc(5y)16.43%
ROCE(3y)19.36%
ROCE(5y)17.85%
ROICexcg growth 3Y-13.71%
ROICexcg growth 5Y51.61%
ROICexc growth 3Y-7.55%
ROICexc growth 5Y56.86%
OM growth 3Y13.19%
OM growth 5Y62.33%
PM growth 3Y3.8%
PM growth 5YN/A
GM growth 3Y-2.84%
GM growth 5Y2.04%
F-Score7
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.79 | ||
| Debt/FCF | 58.28 | ||
| Debt/EBITDA | 3.68 | ||
| Cap/Depr | 30.34% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 19.34% | ||
| Profit Quality | 66.02% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 0.96 |
F-Score7
WACC6.18%
ROIC/WACC1.42
Cap/Depr(3y)27.37%
Cap/Depr(5y)21.71%
Cap/Sales(3y)1.39%
Cap/Sales(5y)1.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)222.64%
EPS 3Y22.16%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y155.31%
EPS Next 2Y8.55%
EPS Next 3Y57.59%
EPS Next 5Y38.29%
Revenue 1Y (TTM)-8.92%
Revenue growth 3Y26.82%
Revenue growth 5Y11.15%
Sales Q2Q%-9.51%
Revenue Next Year13.13%
Revenue Next 2Y12.14%
Revenue Next 3Y5.2%
Revenue Next 5Y3.02%
EBIT growth 1Y10.61%
EBIT growth 3Y43.54%
EBIT growth 5Y80.43%
EBIT Next Year196.88%
EBIT Next 3Y47.17%
EBIT Next 5Y35.26%
FCF growth 1Y-86.17%
FCF growth 3Y-20.16%
FCF growth 5YN/A
OCF growth 1Y-63.73%
OCF growth 3Y-2.81%
OCF growth 5YN/A