DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
Canada - TSX:DCM - CA23761M1023 - Common Stock
1.4 CAD
+0.05 (+3.7%)
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.
DCM had a positive operating cash flow in the past year.
Of the past 5 years DCM 4 years were profitable.
Each year in the past 5 years DCM had a positive operating cash flow.
1.2 Ratios
DCM's Return On Assets of 1.82% is in line compared to the rest of the industry. DCM outperforms 58.33% of its industry peers.
DCM has a better Return On Equity (19.17%) than 87.50% of its industry peers.
DCM's Return On Invested Capital of 8.78% is amongst the best of the industry. DCM outperforms 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 7.08%.
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.
With a decent Operating Margin value of 8.40%, DCM is doing good in the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Operating Margin of DCM has grown nicely.
DCM has a Gross Margin (27.07%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DCM has grown nicely.
| 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
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.
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
DCM has an Altman-Z score of 0.95. 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 0.95. This is in the lower half of the industry: DCM underperforms 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 has a Debt to FCF ratio (58.28) which is comparable to the rest of the industry.
A Debt/Equity ratio of 6.79 is on the high side and indicates that DCM has dependencies on debt financing.
DCM has a Debt to Equity ratio of 6.79. This is in the lower half of the industry: DCM underperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.79 | ||
| Debt/FCF | 58.28 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.47
WACC5.98%
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.
The Current ratio of DCM (1.77) is better than 75.00% of its industry peers.
DCM has a Quick Ratio of 1.44. 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 (1.44) than 70.83% of its industry peers.
| 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
DCM shows a decrease in Revenue. In the last year, the revenue decreased by -8.92%.
The Revenue has been growing by 11.15% on average over the past years. This is quite good.
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
Based on estimates for the next years, DCM will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y155.31%
EPS Next 2Y8.55%
EPS Next 3Y57.59%
EPS Next 5Y38.29%
Revenue Next Year13.13%
Revenue Next 2Y12.14%
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
A Price/Earnings ratio of 7.00 indicates a rather cheap valuation of DCM.
Compared to the rest of the industry, the Price/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/Earnings ratio is at 27.67. DCM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.60, the valuation of DCM can be described as very cheap.
100.00% of the companies in the same industry are more expensive than DCM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.33. DCM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 6.6 |
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.
Based on the Price/Free Cash Flow ratio, DCM is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.05 | ||
| EV/EBITDA | 5.08 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 57.59% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y8.55%
EPS Next 3Y57.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.63%, DCM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.42, 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 2.35, DCM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.63% |
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 2Y8.55%
EPS Next 3Y57.59%
TSX:DCM (10/23/2025, 7:00:00 PM)
1.4
+0.05 (+3.7%)
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 Cap77.20M
Revenue(TTM)462.42M
Net Income(TTM)6.86M
Analysts85.71
Price Target3.4 (142.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.63% |
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)12.06%
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)-9.79%
Min Revenue beat(4)-19.37%
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)0%
EPS NQ rev (3m)-120%
EPS NY rev (1m)0%
EPS NY rev (3m)48.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 6.6 | ||
| P/S | 0.17 | ||
| P/FCF | 17.05 | ||
| P/OCF | 6.05 | ||
| P/B | 2.16 | ||
| P/tB | 14.18 | ||
| EV/EBITDA | 5.08 |
EPS(TTM)0.2
EY14.29%
EPS(NY)0.21
Fwd EY15.15%
FCF(TTM)0.08
FCFY5.87%
OCF(TTM)0.23
OCFY16.54%
SpS8.39
BVpS0.65
TBVpS0.1
PEG (NY)0.05
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
WACC5.98%
ROIC/WACC1.47
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 Y155.31%
EPS Next 2Y8.55%
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 Year13.13%
Revenue Next 2Y12.14%
Revenue Next 3Y5.2%
Revenue Next 5Y3.02%
EBIT growth 1Y10.61%
EBIT growth 3Y43.54%
EBIT growth 5Y80.43%
EBIT Next Year196.88%
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