DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
TSX:DCM - Toronto Stock Exchange - CA23761M1023 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to DCM. DCM was compared to 25 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of DCM while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on DCM.
1. Profitability
1.1 Basic Checks
DCM had negative earnings in the past year.
In the past year DCM had a positive cash flow from operations.
In multiple years DCM reported negative net income over the last 5 years.
Of the past 5 years DCM 4 years had a positive operating cash flow.
1.2 Ratios
DCM has a Return On Assets of -0.90%. This is in the lower half of the industry: DCM underperforms 64.00% of its industry peers.
DCM's Return On Equity of -8.86% is on the low side compared to the rest of the industry. DCM is outperformed by 64.00% of its industry peers.
DCM's Return On Invested Capital of 8.52% is amongst the best of the industry. DCM outperforms 92.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DCM is significantly above the industry average of 7.92%.
The 3 year average ROIC (14.47%) for DCM is well above the current ROIC(8.52%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.9% | ||
| ROE | -8.86% | ||
| ROIC | 8.52% |
ROA(3y)2.22%
ROA(5y)1.43%
ROE(3y)8.49%
ROE(5y)N/A
ROIC(3y)14.47%
ROIC(5y)10.8%
1.3 Margins
The Operating Margin of DCM (7.18%) is better than 72.00% of its industry peers.
In the last couple of years the Operating Margin of DCM has grown nicely.
DCM has a Gross Margin (26.82%) 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 | 7.18% | ||
| PM (TTM) | N/A | ||
| GM | 26.82% |
OM growth 3Y9.42%
OM growth 5Y13.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.88%
GM growth 5Y1.86%
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 has a Altman-Z score of 1.00. This is in the lower half of the industry: DCM underperforms 68.00% of its industry peers.
The Debt to FCF ratio of DCM is 12.45, which is on the high side as it means it would take DCM, 12.45 years of fcf income to pay off all of its debts.
DCM has a Debt to FCF ratio (12.45) which is comparable to the rest of the industry.
A Debt/Equity ratio of 5.70 is on the high side and indicates that DCM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.70, DCM is doing worse than 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.7 | ||
| Debt/FCF | 12.45 | ||
| Altman-Z | 1 |
ROIC/WACC1.36
WACC6.29%
2.3 Liquidity
A Current Ratio of 1.46 indicates that DCM should not have too much problems paying its short term obligations.
DCM has a Current ratio of 1.46. This is in the better half of the industry: DCM outperforms 68.00% of its industry peers.
DCM has a Quick Ratio of 1.19. 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 1.19 is fine compared to the rest of the industry. DCM outperforms 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
DCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.44%, which is quite impressive.
The Revenue has grown by 26.33% in the past year. This is a very strong growth!
Measured over the past years, DCM shows a small growth in Revenue. The Revenue has been growing by 6.76% on average per year.
EPS 1Y (TTM)38.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)26.33%
Revenue growth 3Y19.97%
Revenue growth 5Y6.76%
Sales Q2Q%-11.4%
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 58.80% on average per year.
Based on estimates for the next years, DCM will show a small growth in Revenue. The Revenue will grow by 5.92% on average per year.
EPS Next Y179.17%
EPS Next 2Y102.59%
EPS Next 3Y82.74%
EPS Next 5Y58.8%
Revenue Next Year12.14%
Revenue Next 2Y10.14%
Revenue Next 3Y10.48%
Revenue Next 5Y5.92%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
DCM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 5.82, 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.
When comparing the Price/Forward Earnings ratio of DCM to the average of the S&P500 Index (94.77), we can say DCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCM is valued cheaply inside the industry as 92.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DCM indicates a rather cheap valuation: DCM is cheaper than 96.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.48 | ||
| EV/EBITDA | 5.53 |
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.
DCM's earnings are expected to grow with 82.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y102.59%
EPS Next 3Y82.74%
5. Dividend
5.1 Amount
DCM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DATA COMMUNICATIONS MANAGEME
TSX:DCM (2/7/2025, 7:00:00 PM)
1.98
-0.02 (-1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners8.88%
Inst Owner ChangeN/A
Ins Owners22.52%
Ins Owner ChangeN/A
Market Cap109.51M
Analysts85
Price Target4.97 (151.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-65.35%
Min EPS beat(2)-100%
Max EPS beat(2)-30.69%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)0
Avg Revenue beat(2)-7.76%
Min Revenue beat(2)-8.39%
Max Revenue beat(2)-7.13%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-7.14%
EPS NQ rev (1m)-28.57%
EPS NQ rev (3m)-54.55%
EPS NY rev (1m)-15.55%
EPS NY rev (3m)-18.8%
Revenue NQ rev (1m)-1.99%
Revenue NQ rev (3m)-16.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.82 | ||
| P/S | 0.22 | ||
| P/FCF | 5.48 | ||
| P/OCF | 3.42 | ||
| P/B | 2.78 | ||
| P/tB | 14.69 | ||
| EV/EBITDA | 5.53 |
EPS(TTM)-0.07
EYN/A
EPS(NY)0.34
Fwd EY17.17%
FCF(TTM)0.36
FCFY18.24%
OCF(TTM)0.58
OCFY29.27%
SpS8.93
BVpS0.71
TBVpS0.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.9% | ||
| ROE | -8.86% | ||
| ROCE | 12.14% | ||
| ROIC | 8.52% | ||
| ROICexc | 8.79% | ||
| ROICexgc | 9.91% | ||
| OM | 7.18% | ||
| PM (TTM) | N/A | ||
| GM | 26.82% | ||
| FCFM | 4.05% |
ROA(3y)2.22%
ROA(5y)1.43%
ROE(3y)8.49%
ROE(5y)N/A
ROIC(3y)14.47%
ROIC(5y)10.8%
ROICexc(3y)15.11%
ROICexc(5y)11.19%
ROICexgc(3y)19.92%
ROICexgc(5y)15%
ROCE(3y)20.63%
ROCE(5y)15.4%
ROICexcg growth 3Y-14.13%
ROICexcg growth 5Y-13.56%
ROICexc growth 3Y-6.8%
ROICexc growth 5Y-5.55%
OM growth 3Y9.42%
OM growth 5Y13.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.88%
GM growth 5Y1.86%
F-Score4
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.7 | ||
| Debt/FCF | 12.45 | ||
| Debt/EBITDA | 3.55 | ||
| Cap/Depr | 43.61% | ||
| Cap/Sales | 2.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 1 |
F-Score4
WACC6.29%
ROIC/WACC1.36
Cap/Depr(3y)18.37%
Cap/Depr(5y)17.88%
Cap/Sales(3y)0.97%
Cap/Sales(5y)0.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)38.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
EPS Next Y179.17%
EPS Next 2Y102.59%
EPS Next 3Y82.74%
EPS Next 5Y58.8%
Revenue 1Y (TTM)26.33%
Revenue growth 3Y19.97%
Revenue growth 5Y6.76%
Sales Q2Q%-11.4%
Revenue Next Year12.14%
Revenue Next 2Y10.14%
Revenue Next 3Y10.48%
Revenue Next 5Y5.92%
EBIT growth 1Y27.1%
EBIT growth 3Y31.27%
EBIT growth 5Y21.42%
EBIT Next Year1372.67%
EBIT Next 3YN/A
EBIT Next 5Y83.01%
FCF growth 1Y35.6%
FCF growth 3Y-15.28%
FCF growth 5Y24.66%
OCF growth 1Y85.66%
OCF growth 3Y-11.7%
OCF growth 5Y13.7%