DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
Canada - TSX:DCM - CA23761M1023 - Common Stock
1.29 CAD
-0.04 (-3.01%)
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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
DCM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DCM has a Return On Assets (1.82%) which is in line with its industry peers.
With an excellent Return On Equity value of 19.17%, DCM belongs to the best 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.
The Average Return On Invested Capital over the past 3 years for DCM is significantly above the industry average of 7.09%.
The 3 year average ROIC (13.16%) for DCM is well above the current ROIC(8.78%). The reason for the recent decline needs to be investigated.
| 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's Operating Margin of 8.40% is fine compared to the rest 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DCM is creating value.
The number of shares outstanding for DCM has been increased compared to 1 year ago.
DCM has more shares outstanding than it did 5 years ago.
DCM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that DCM is in the distress zone and has some risk of bankruptcy.
DCM has a worse Altman-Z score (0.95) than 62.50% of its industry peers.
The Debt to FCF ratio of DCM is 58.28, which is on the high side as it means it would take DCM, 58.28 years of fcf income to pay off 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 41.67% 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.
DCM's Debt to Equity ratio of 6.79 is on the low side compared to the rest of the industry. DCM is outperformed by 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.79 | ||
| Debt/FCF | 58.28 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.49
WACC5.89%
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.
Looking at the Current ratio, with a value of 1.77, DCM is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 1.44 indicates that DCM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.44, 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 | 1.77 | ||
| 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
Looking at the last year, DCM shows a decrease in Revenue. The Revenue has decreased by -8.92% in the last 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
DCM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.02% yearly.
EPS Next Y-13.03%
EPS Next 2Y7.25%
EPS Next 3Y57.59%
EPS Next 5Y38.29%
Revenue Next Year-5.46%
Revenue Next 2Y-1.52%
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.
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
The Price/Earnings ratio is 6.45, which indicates a rather cheap valuation of DCM.
Based on the Price/Earnings ratio, DCM is valued cheaper than 100.00% of the companies in the same industry.
DCM is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
DCM is valuated cheaply with a Price/Forward Earnings ratio of 6.23.
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 (32.68), we can say DCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 6.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCM is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
DCM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DCM is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.71 | ||
| EV/EBITDA | 5.07 |
4.3 Compensation for Growth
DCM has an outstanding profitability rating, which may justify a higher PE ratio.
DCM's earnings are expected to grow with 57.59% 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 3Y57.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.58%, DCM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.37, 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 2.39, DCM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.58% |
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 3Y57.59%
TSX:DCM (11/7/2025, 7:00:00 PM)
1.29
-0.04 (-3.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners14.28%
Inst Owner ChangeN/A
Ins Owners22.56%
Ins Owner ChangeN/A
Market Cap71.13M
Revenue(TTM)462.42M
Net Income(TTM)6.86M
Analysts85.71
Price Target3.4 (163.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.58% |
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)27.81%
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)-3.51%
Min Revenue beat(4)-8.39%
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)0%
PT rev (3m)-9.61%
EPS NQ rev (1m)-100%
EPS NQ rev (3m)-140%
EPS NY rev (1m)-65.93%
EPS NY rev (3m)-49.46%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-8.36%
Revenue NY rev (1m)-16.44%
Revenue NY rev (3m)-7.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.45 | ||
| Fwd PE | 6.23 | ||
| P/S | 0.15 | ||
| P/FCF | 15.71 | ||
| P/OCF | 5.57 | ||
| P/B | 1.99 | ||
| P/tB | 13.06 | ||
| EV/EBITDA | 5.07 |
EPS(TTM)0.2
EY15.5%
EPS(NY)0.21
Fwd EY16.05%
FCF(TTM)0.08
FCFY6.37%
OCF(TTM)0.23
OCFY17.95%
SpS8.39
BVpS0.65
TBVpS0.1
PEG (NY)N/A
PEG (5Y)N/A
Graham Number1.71
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%
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-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 | 0.95 |
F-Score7
WACC5.89%
ROIC/WACC1.49
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 Y-13.03%
EPS Next 2Y7.25%
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 Year-5.46%
Revenue Next 2Y-1.52%
Revenue Next 3Y5.2%
Revenue Next 5Y3.02%
EBIT growth 1Y10.61%
EBIT growth 3Y43.54%
EBIT growth 5Y80.43%
EBIT Next Year122.44%
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
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 6.45 and the Price/Book (PB) ratio is 1.99.
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.