DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DCM - CA23761M1023 - Common Stock
1.65 CAD
+0.01 (+0.61%)
We assign a fundamental rating of 6 out of 10 to DCM. DCM was compared to 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 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.
DCM had a positive operating cash flow in the past year.
DCM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years DCM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.86%, DCM is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
DCM has a better Return On Equity (26.86%) than 91.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.84%, DCM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DCM is significantly above the industry average of 5.81%.
The 3 year average ROIC (13.16%) for DCM is well above the current ROIC(8.84%). The reason for the recent decline needs to be investigated.
| 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 has a Profit Margin (2.31%) which is in line with its industry peers.
DCM's Profit Margin has improved in the last couple of years.
DCM has a better Operating Margin (8.41%) than 70.83% of its industry peers.
DCM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 26.53%, DCM is in line with its industry, outperforming 54.17% of the companies in the same industry.
In the last couple of years the Gross Margin of DCM has grown nicely.
| 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.
The number of shares outstanding for DCM has been increased compared to 1 year ago.
Compared to 5 years ago, DCM has more shares outstanding
Compared to 1 year ago, DCM has a worse debt to assets ratio.
2.2 Solvency
DCM has an Altman-Z score of 0.99. This is a bad value and indicates that DCM is not financially healthy and even has some risk of bankruptcy.
DCM has a Altman-Z score (0.99) which is comparable to the rest of the industry.
The Debt to FCF ratio of DCM is 19.50, which is on the high side as it means it would take DCM, 19.50 years of fcf income to pay off all of its debts.
DCM has a Debt to FCF ratio (19.50) which is in line with its industry peers.
A Debt/Equity ratio of 6.09 is on the high side and indicates that DCM has dependencies on debt financing.
The Debt to Equity ratio of DCM (6.09) is worse than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.09 | ||
| Debt/FCF | 19.5 | ||
| Altman-Z | 0.99 |
ROIC/WACC1.39
WACC6.36%
2.3 Liquidity
A Current Ratio of 1.76 indicates that DCM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.76, DCM is in the better half of 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.
The Quick ratio of DCM (1.47) is better than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
DCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 362.27%, which is quite impressive.
DCM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.16% yearly.
DCM shows a decrease in Revenue. In the last year, the revenue decreased by -7.01%.
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
The Earnings Per Share is expected to grow by 38.29% on average over the next years. This is a very strong growth
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
A Price/Earnings ratio of 8.25 indicates a reasonable valuation of DCM.
Based on the Price/Earnings ratio, DCM is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
DCM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.77.
With a Price/Forward Earnings ratio of 7.97, the valuation of DCM can be described as very cheap.
Based on the Price/Forward Earnings ratio, DCM is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DCM to the average of the S&P500 Index (23.35), we can say DCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 7.97 |
4.2 Price Multiples
DCM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DCM is cheaper than 95.83% of the companies in the same industry.
DCM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DCM is cheaper than 95.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.78 | ||
| EV/EBITDA | 5.32 |
4.3 Compensation for Growth
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 13.42% in the coming years.
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 5.99%, DCM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.02, DCM pays a better dividend. On top of this DCM pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, DCM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.99% |
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 (12/30/2025, 7:00:00 PM)
1.65
+0.01 (+0.61%)
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 Cap90.68M
Revenue(TTM)459.06M
Net Income(TTM)10.59M
Analysts85.71
Price Target3.23 (95.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.99% |
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)0%
PT rev (3m)-5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-111.05%
EPS NY rev (1m)8.63%
EPS NY rev (3m)-61.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-16.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 7.97 | ||
| P/S | 0.2 | ||
| P/FCF | 6.78 | ||
| P/OCF | 4.65 | ||
| P/B | 2.3 | ||
| P/tB | 9.76 | ||
| EV/EBITDA | 5.32 |
EPS(TTM)0.2
EY12.12%
EPS(NY)0.21
Fwd EY12.55%
FCF(TTM)0.24
FCFY14.74%
OCF(TTM)0.35
OCFY21.5%
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 | 0.99 |
F-Score6
WACC6.36%
ROIC/WACC1.39
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 8.25 and the Price/Book (PB) ratio is 2.3.
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.