DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DCM - CA23761M1023 - Common Stock
1.67 CAD
0 (0%)
Overall DCM gets a fundamental rating of 6 out of 10. We evaluated DCM 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.
In the past 5 years DCM always reported a positive cash flow from operatings.
1.2 Ratios
DCM has a Return On Assets of 2.86%. This is in the better half of the industry: DCM outperforms 62.50% of its industry peers.
DCM has a Return On Equity of 26.86%. This is amongst the best in the industry. DCM outperforms 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 comparable to the rest of the industry.
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 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DCM is creating value.
DCM has more shares outstanding than it did 1 year ago.
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
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 of 0.99. This is comparable to the rest of the industry: DCM outperforms 41.67% of its industry peers.
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.
The Debt to FCF ratio of DCM (19.50) 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.
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.
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.
DCM has a better Quick ratio (1.47) 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.
The Revenue has decreased by -7.01% in the past 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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 8.35 indicates a reasonable valuation of DCM.
100.00% of the companies in the same industry are more expensive than DCM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.92, DCM is valued rather cheaply.
The Price/Forward Earnings ratio is 8.07, which indicates a very decent valuation of DCM.
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.
The average S&P500 Price/Forward Earnings ratio is at 23.46. DCM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 8.07 |
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.
91.67% of the companies in the same industry are more expensive than DCM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.87 | ||
| EV/EBITDA | 5.34 |
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
DCM has a Yearly Dividend Yield of 5.99%, which is a nice return.
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 (12/24/2025, 7:00:00 PM)
1.67
0 (0%)
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 Cap91.78M
Revenue(TTM)459.06M
Net Income(TTM)10.59M
Analysts85.71
Price Target3.23 (93.41%)
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 | 8.35 | ||
| Fwd PE | 8.07 | ||
| P/S | 0.2 | ||
| P/FCF | 6.87 | ||
| P/OCF | 4.71 | ||
| P/B | 2.33 | ||
| P/tB | 9.87 | ||
| EV/EBITDA | 5.34 |
EPS(TTM)0.2
EY11.98%
EPS(NY)0.21
Fwd EY12.4%
FCF(TTM)0.24
FCFY14.57%
OCF(TTM)0.35
OCFY21.25%
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 8.35 and the Price/Book (PB) ratio is 2.33.
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.