DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:DCM • CA23761M1023
1.5 CAD
-0.04 (-2.6%)
Last: Feb 6, 2026, 07:00 PM
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. 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
- DCM had positive earnings in the past year.
- In the past year DCM had a positive cash flow from operations.
- Of the past 5 years DCM 4 years were profitable.
- DCM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of DCM (2.86%) is better than 62.50% of its industry peers.
- With an excellent Return On Equity value of 26.86%, DCM belongs to the best 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.
- DCM had an Average Return On Invested Capital over the past 3 years of 13.16%. This 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'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 better Operating Margin (8.41%) than 70.83% of its industry peers.
- DCM's Operating Margin has improved in the last couple of years.
- DCM has a Gross Margin (26.53%) which is comparable to the rest of the 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
- The debt/assets ratio for DCM is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.98, we must say that DCM is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of DCM (0.98) 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's Debt to FCF ratio of 19.50 is in line compared to the rest of the industry. DCM outperforms 41.67% of its industry peers.
- DCM has a Debt/Equity ratio of 6.09. This is a high value indicating a heavy dependency on external financing.
- DCM has a Debt to Equity ratio of 6.09. This is in the lower half of the industry: DCM underperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.09 | ||
| Debt/FCF | 19.5 | ||
| Altman-Z | 0.98 |
ROIC/WACC1.42
WACC6.23%
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.
- DCM has a Quick Ratio of 1.47. This is a normal value and indicates that DCM is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.47, DCM is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing by 22.16% on average over the past years. This is a very strong growth
- 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
- 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.
- DCM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.34% yearly.
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 5Y-0.34%
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
- With a Price/Earnings ratio of 7.50, the valuation of DCM can be described as very cheap.
- 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.
- DCM is valuated cheaply when we compare the Price/Earnings ratio to 27.92, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 7.24, the valuation of DCM can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of DCM indicates a rather cheap valuation: DCM is cheaper than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.78, DCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DCM is valued cheaper than 95.83% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DCM indicates a rather cheap valuation: DCM is cheaper than 95.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.17 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
- DCM has an outstanding profitability rating, which 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 6.49%, 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 1.81, DCM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.49% |
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 (2/6/2026, 7:00:00 PM)
1.5
-0.04 (-2.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)11-11 2025-11-11/amc
Earnings (Next)03-09 2026-03-09
Inst Owners13.36%
Inst Owner ChangeN/A
Ins Owners22.66%
Ins Owner ChangeN/A
Market Cap82.44M
Revenue(TTM)459.06M
Net Income(TTM)10.59M
Analysts85.71
Price Target3.23 (115.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.49% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0%
EPS NY rev (3m)12.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.18 | ||
| P/FCF | 6.17 | ||
| P/OCF | 4.23 | ||
| P/B | 2.09 | ||
| P/tB | 8.87 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)0.2
EY13.33%
EPS(NY)0.21
Fwd EY13.8%
FCF(TTM)0.24
FCFY16.22%
OCF(TTM)0.35
OCFY23.65%
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 | 0.98 |
F-Score6
WACC6.23%
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)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 5Y-0.34%
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.
Can you provide the valuation status for DATA COMMUNICATIONS MANAGEME?
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 earnings growth outlook for DATA COMMUNICATIONS MANAGEME?
The Earnings per Share (EPS) of DATA COMMUNICATIONS MANAGEME (DCM.CA) is expected to decline by -1.81% in the next year.