DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DCM - CA23761M1023 - Common Stock
1.94 CAD
+0.09 (+4.86%)
Taking everything into account, DCM scores 6 out of 10 in our fundamental rating. DCM was compared to 24 industry peers in the Commercial Services & Supplies industry. DCM has an excellent profitability rating, but there are concerns on its financial health. DCM may be a bit undervalued, certainly considering the very reasonable score on growth
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
With a decent Return On Assets value of 2.86%, DCM is doing good in the industry, outperforming 62.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 26.86%, DCM belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
DCM has a better Return On Invested Capital (8.84%) than 87.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DCM is significantly above the industry average of 6.19%.
The last Return On Invested Capital (8.84%) 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 | 2.86% | ||
| ROE | 26.86% | ||
| ROIC | 8.84% |
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
DCM's Profit Margin of 2.31% is in line compared to the rest of the industry. DCM outperforms 58.33% of its industry peers.
In the last couple of years the Profit Margin of DCM has grown nicely.
DCM has a Operating Margin of 8.41%. This is in the better half of the industry: DCM outperforms 70.83% of its industry peers.
In the last couple of years the Operating Margin of DCM has grown nicely.
DCM has a Gross Margin of 26.53%. This is comparable to the rest of the industry: DCM outperforms 54.17% of its industry peers.
DCM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.41% | ||
| PM (TTM) | 2.31% | ||
| GM | 26.53% |
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.
DCM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DCM has been increased compared to 5 years ago.
DCM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that DCM is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DCM (1.02) is comparable to the rest of the industry.
DCM has a debt to FCF ratio of 19.50. This is a negative value and a sign of low solvency as DCM would need 19.50 years to pay back of all of its debts.
DCM has a Debt to FCF ratio (19.50) which is comparable to the rest of the industry.
A Debt/Equity ratio of 6.09 is on the high side and indicates that DCM has dependencies on debt financing.
DCM has a worse Debt to Equity ratio (6.09) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.09 | ||
| Debt/FCF | 19.5 | ||
| Altman-Z | 1.02 |
ROIC/WACC1.37
WACC6.47%
2.3 Liquidity
A Current Ratio of 1.76 indicates that DCM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.76, DCM is doing good in the industry, outperforming 70.83% of the companies in the same industry.
A Quick Ratio of 1.47 indicates that DCM should not have too much problems paying its short term obligations.
DCM's Quick ratio of 1.47 is fine compared to the rest of the industry. DCM outperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 362.27% 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
Looking at the last year, DCM shows a decrease in Revenue. The Revenue has decreased by -7.01% in the last year.
Measured over the past years, DCM shows a quite strong growth in Revenue. The Revenue has been growing by 11.15% on average per year.
EPS 1Y (TTM)362.27%
EPS 3Y22.16%
EPS 5YN/A
EPS Q2Q%137.2%
Revenue 1Y (TTM)-7.01%
Revenue growth 3Y26.82%
Revenue growth 5Y11.15%
Sales Q2Q%-3.09%
3.2 Future
Based on estimates for the next years, DCM will show a very strong growth in Earnings Per Share. The EPS will grow by 38.29% on average per year.
The Revenue is expected to grow by 0.13% on average over the next years.
EPS Next Y-1.81%
EPS Next 2Y7.25%
EPS Next 3Y13.42%
EPS Next 5Y38.29%
Revenue Next Year-5.46%
Revenue Next 2Y-1.74%
Revenue Next 3Y-0.31%
Revenue Next 5Y0.13%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.70, the valuation of DCM can be described as reasonable.
95.83% of the companies in the same industry are more expensive than DCM, based on the Price/Earnings ratio.
DCM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.49.
A Price/Forward Earnings ratio of 9.37 indicates a reasonable valuation of DCM.
Based on the Price/Forward Earnings ratio, DCM is valued cheaper than 91.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.69. DCM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 9.37 |
4.2 Price Multiples
95.83% of the companies in the same industry are more expensive than DCM, based on the Enterprise Value to EBITDA ratio.
DCM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DCM is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.98 | ||
| EV/EBITDA | 5.56 |
4.3 Compensation for Growth
The excellent profitability rating of DCM may justify a higher PE ratio.
DCM's earnings are expected to grow with 13.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.25%
EPS Next 3Y13.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.41%, DCM is a good candidate for dividend investing.
DCM's Dividend Yield is rather good when compared to the industry average which is at 2.17. DCM pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, DCM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
5.2 History
DCM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y7.25%
EPS Next 3Y13.42%
TSX:DCM (12/5/2025, 7:00:00 PM)
1.94
+0.09 (+4.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners13.74%
Inst Owner ChangeN/A
Ins Owners22.63%
Ins Owner ChangeN/A
Market Cap106.62M
Revenue(TTM)459.06M
Net Income(TTM)10.59M
Analysts85.71
Price Target3.23 (66.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
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)143.56%
Min EPS beat(2)109.9%
Max EPS beat(2)177.23%
EPS beat(4)3
Avg EPS beat(4)80.29%
Min EPS beat(4)-0.99%
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)-2.11%
Min Revenue beat(2)-5.08%
Max Revenue beat(2)0.86%
Revenue beat(4)2
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-5.08%
Max Revenue beat(4)0.86%
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)-5%
PT rev (3m)-5%
EPS NQ rev (1m)-111.05%
EPS NQ rev (3m)-111.05%
EPS NY rev (1m)34.41%
EPS NY rev (3m)-61.54%
Revenue NQ rev (1m)-10.34%
Revenue NQ rev (3m)-10.34%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-16.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.7 | ||
| Fwd PE | 9.37 | ||
| P/S | 0.23 | ||
| P/FCF | 7.98 | ||
| P/OCF | 5.47 | ||
| P/B | 2.71 | ||
| P/tB | 11.47 | ||
| EV/EBITDA | 5.56 |
EPS(TTM)0.2
EY10.31%
EPS(NY)0.21
Fwd EY10.67%
FCF(TTM)0.24
FCFY12.54%
OCF(TTM)0.35
OCFY18.29%
SpS8.35
BVpS0.72
TBVpS0.17
PEG (NY)N/A
PEG (5Y)N/A
Graham Number1.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 26.86% | ||
| ROCE | 12.98% | ||
| ROIC | 8.84% | ||
| ROICexc | 8.95% | ||
| ROICexgc | 9.97% | ||
| OM | 8.41% | ||
| PM (TTM) | 2.31% | ||
| GM | 26.53% | ||
| FCFM | 2.91% |
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%
ROICexgc growth 3Y-13.71%
ROICexgc 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-Score6
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.09 | ||
| Debt/FCF | 19.5 | ||
| Debt/EBITDA | 3.67 | ||
| Cap/Depr | 22.89% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.83% | ||
| Profit Quality | 126.3% | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 1.02 |
F-Score6
WACC6.47%
ROIC/WACC1.37
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)362.27%
EPS 3Y22.16%
EPS 5YN/A
EPS Q2Q%137.2%
EPS Next Y-1.81%
EPS Next 2Y7.25%
EPS Next 3Y13.42%
EPS Next 5Y38.29%
Revenue 1Y (TTM)-7.01%
Revenue growth 3Y26.82%
Revenue growth 5Y11.15%
Sales Q2Q%-3.09%
Revenue Next Year-5.46%
Revenue Next 2Y-1.74%
Revenue Next 3Y-0.31%
Revenue Next 5Y0.13%
EBIT growth 1Y7.49%
EBIT growth 3Y43.54%
EBIT growth 5Y80.43%
EBIT Next Year122.56%
EBIT Next 3Y33.87%
EBIT Next 5Y35.26%
FCF growth 1Y-57.13%
FCF growth 3Y-20.16%
FCF growth 5YN/A
OCF growth 1Y-43.08%
OCF growth 3Y-2.81%
OCF growth 5YN/A
DATA COMMUNICATIONS MANAGEME / DCM.CA FAQ
Can you provide the ChartMill fundamental rating for DATA COMMUNICATIONS MANAGEME?
ChartMill assigns a fundamental rating of 6 / 10 to DCM.CA.
What is the valuation status for DCM stock?
ChartMill assigns a valuation rating of 8 / 10 to DATA COMMUNICATIONS MANAGEME (DCM.CA). This can be considered as Undervalued.
How profitable is DATA COMMUNICATIONS MANAGEME (DCM.CA) stock?
DATA COMMUNICATIONS MANAGEME (DCM.CA) has a profitability rating of 8 / 10.
What is the valuation of DATA COMMUNICATIONS MANAGEME based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DATA COMMUNICATIONS MANAGEME (DCM.CA) is 9.7 and the Price/Book (PB) ratio is 2.71.
What is the financial health of DATA COMMUNICATIONS MANAGEME (DCM.CA) stock?
The financial health rating of DATA COMMUNICATIONS MANAGEME (DCM.CA) is 3 / 10.