DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
TSX:DCM - Toronto Stock Exchange - CA23761M1023 - Common Stock - Currency: CAD
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.
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 (1.81%) which is in line with its industry peers.
DCM has a better Return On Equity (22.25%) than 87.50% of its industry peers.
With an excellent Return On Invested Capital value of 8.75%, 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 7.19%.
The last Return On Invested Capital (8.75%) for DCM is well below the 3 year average (13.16%), which needs to be investigated, but indicates that DCM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | 22.25% | ||
| ROIC | 8.75% |
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
With a decent Profit Margin value of 1.52%, DCM is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of DCM has grown nicely.
DCM has a Operating Margin of 8.41%. This is in the better half of the industry: DCM outperforms 70.83% of its industry peers.
DCM's Operating Margin has improved in the last couple of years.
DCM has a Gross Margin (27.20%) which is in line with its industry peers.
DCM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.41% | ||
| PM (TTM) | 1.52% | ||
| GM | 27.2% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DCM is creating value.
Compared to 1 year ago, DCM has more shares outstanding
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 0.98, we must say that DCM is in the distress zone and has some risk of bankruptcy.
DCM's Altman-Z score of 0.98 is on the low side compared to the rest of the industry. DCM is outperformed by 62.50% of its industry peers.
DCM has a debt to FCF ratio of 79.63. This is a negative value and a sign of low solvency as DCM would need 79.63 years to pay back of all of its debts.
The Debt to FCF ratio of DCM (79.63) is comparable to the rest of the industry.
A Debt/Equity ratio of 7.82 is on the high side and indicates that DCM has dependencies on debt financing.
DCM's Debt to Equity ratio of 7.82 is on the low side compared to the rest of the industry. DCM is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.82 | ||
| Debt/FCF | 79.63 | ||
| Altman-Z | 0.98 |
ROIC/WACC1.38
WACC6.34%
2.3 Liquidity
A Current Ratio of 1.71 indicates that DCM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.71, DCM is doing good in the industry, outperforming 70.83% of the companies in the same industry.
DCM has a Quick Ratio of 1.42. 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 1.42, 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 | 1.71 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
DCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 154.77%, 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 -5.30%.
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)154.77%
EPS 3Y22.16%
EPS 5YN/A
EPS Q2Q%256.8%
Revenue 1Y (TTM)-5.3%
Revenue growth 3Y26.82%
Revenue growth 5Y11.15%
Sales Q2Q%-4.32%
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 38.25% on average per year.
Based on estimates for the next years, DCM will show a small growth in Revenue. The Revenue will grow by 1.02% on average per year.
EPS Next Y72.08%
EPS Next 2Y53.51%
EPS Next 3Y57.59%
EPS Next 5Y38.25%
Revenue Next Year-5.19%
Revenue Next 2Y-0.58%
Revenue Next 3Y2.54%
Revenue Next 5Y1.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DCM is valuated reasonably with a Price/Earnings ratio of 9.50.
100.00% of the companies in the same industry are more expensive than DCM, based on the Price/Earnings ratio.
DCM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 4.48, the valuation of DCM can be described as very cheap.
DCM's Price/Forward Earnings ratio is rather cheap when compared to the industry. DCM is cheaper than 91.67% of the companies in the same industry.
DCM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 4.48 |
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.
62.50% 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 | 30.5 | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
DCM's 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)0.13
PEG (5Y)N/A
EPS Next 2Y53.51%
EPS Next 3Y57.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.52%, DCM is a good candidate for dividend investing.
DCM's Dividend Yield is rather good when compared to the industry average which is at 2.30. DCM pays more dividend than 100.00% of the companies in the same industry.
DCM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
5.2 History
DCM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y53.51%
EPS Next 3Y57.59%
TSX:DCM (7/4/2025, 7:00:00 PM)
1.9
-0.02 (-1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners14.79%
Inst Owner ChangeN/A
Ins Owners22.78%
Ins Owner ChangeN/A
Market Cap105.09M
Analysts85
Price Target3.76 (97.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.52% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-14.49%
Min EPS beat(2)-64%
Max EPS beat(2)35.01%
EPS beat(4)1
Avg EPS beat(4)-39.92%
Min EPS beat(4)-100%
Max EPS beat(4)35.01%
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)-9.6%
Min Revenue beat(2)-19.37%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-10.3%
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)-7.81%
PT rev (3m)-15.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-54.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 4.48 | ||
| P/S | 0.22 | ||
| P/FCF | 30.5 | ||
| P/OCF | 7.08 | ||
| P/B | 3.24 | ||
| P/tB | 59.91 | ||
| EV/EBITDA | 5.63 |
EPS(TTM)0.2
EY10.53%
EPS(NY)0.42
Fwd EY22.33%
FCF(TTM)0.06
FCFY3.28%
OCF(TTM)0.27
OCFY14.12%
SpS8.58
BVpS0.59
TBVpS0.03
PEG (NY)0.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | 22.25% | ||
| ROCE | 12.85% | ||
| ROIC | 8.75% | ||
| ROICexc | 8.96% | ||
| ROICexgc | 9.96% | ||
| OM | 8.41% | ||
| PM (TTM) | 1.52% | ||
| GM | 27.2% | ||
| FCFM | 0.73% |
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%
ROICexcg growth 3Y-13.71%
ROICexcg 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 Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.82 | ||
| Debt/FCF | 79.63 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 43.11% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 22.37% | ||
| Profit Quality | 47.8% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 0.98 |
F-Score6
WACC6.34%
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)154.77%
EPS 3Y22.16%
EPS 5YN/A
EPS Q2Q%256.8%
EPS Next Y72.08%
EPS Next 2Y53.51%
EPS Next 3Y57.59%
EPS Next 5Y38.25%
Revenue 1Y (TTM)-5.3%
Revenue growth 3Y26.82%
Revenue growth 5Y11.15%
Sales Q2Q%-4.32%
Revenue Next Year-5.19%
Revenue Next 2Y-0.58%
Revenue Next 3Y2.54%
Revenue Next 5Y1.02%
EBIT growth 1Y18.44%
EBIT growth 3Y43.54%
EBIT growth 5Y80.43%
EBIT Next Year136.35%
EBIT Next 3Y47.17%
EBIT Next 5Y35.26%
FCF growth 1Y-84.6%
FCF growth 3Y-20.16%
FCF growth 5YN/A
OCF growth 1Y-38.91%
OCF growth 3Y-2.81%
OCF growth 5YN/A