DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:DCM - CA23761M1023 - Common Stock
1.73 CAD
+0.09 (+5.49%)
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 scores excellent on profitability, 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.
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
The Return On Assets of DCM (2.86%) is better than 62.50% of its industry peers.
DCM has a better Return On Equity (26.86%) than 91.67% of its industry peers.
The Return On Invested Capital of DCM (8.84%) is better 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.
DCM's Profit Margin has improved in the last couple of years.
The Operating Margin of DCM (8.41%) is better 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
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.
Compared to 1 year ago, DCM has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.00, we must say that DCM is in the distress zone and has some risk of bankruptcy.
DCM's Altman-Z score of 1.00 is in line compared 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.
DCM has a Debt to FCF ratio of 19.50. This is comparable to the rest of the industry: DCM outperforms 41.67% of 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 | 1 |
ROIC/WACC1.38
WACC6.41%
2.3 Liquidity
DCM has a Current Ratio of 1.76. This is a normal value and indicates that DCM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of DCM (1.76) is better than 70.83% of its industry peers.
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'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
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.
Measured over the past years, DCM shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.16% on average per year.
DCM shows a decrease in Revenue. In the last year, the revenue decreased by -7.01%.
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)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
DCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.29% yearly.
DCM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.13% 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 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 8.65, the valuation of DCM can be described as reasonable.
Based on the Price/Earnings ratio, DCM is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of DCM to the average of the S&P500 Index (26.60), we can say DCM is valued rather cheaply.
The Price/Forward Earnings ratio is 8.36, which indicates a very decent valuation of DCM.
DCM's Price/Forward Earnings ratio is rather cheap when compared to the industry. DCM is 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 (23.23), we can say DCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 8.36 |
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.
Based on the Price/Free Cash Flow ratio, DCM is valued cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.11 | ||
| EV/EBITDA | 5.39 |
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 6.10%, DCM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.04, DCM pays a better dividend. On top of this DCM pays more dividend than 100.00% of the companies listed in the same industry.
DCM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
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 (1/2/2026, 7:00:00 PM)
1.73
+0.09 (+5.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners13.36%
Inst Owner ChangeN/A
Ins Owners22.66%
Ins Owner ChangeN/A
Market Cap95.08M
Revenue(TTM)459.06M
Net Income(TTM)10.59M
Analysts85.71
Price Target3.23 (86.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.1% |
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)-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 | 8.65 | ||
| Fwd PE | 8.36 | ||
| P/S | 0.21 | ||
| P/FCF | 7.11 | ||
| P/OCF | 4.88 | ||
| P/B | 2.41 | ||
| P/tB | 10.23 | ||
| EV/EBITDA | 5.39 |
EPS(TTM)0.2
EY11.56%
EPS(NY)0.21
Fwd EY11.97%
FCF(TTM)0.24
FCFY14.06%
OCF(TTM)0.35
OCFY20.51%
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 |
F-Score6
WACC6.41%
ROIC/WACC1.38
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.
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.