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DECISIONPOINT SYSTEMS INC/CA (DPSI) Stock Fundamental Analysis

NYSEARCA:DPSI - NYSE Arca - US24345A5074 - Common Stock - Currency: USD

10.225  +0.03 (+0.25%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to DPSI. DPSI was compared to 82 industry peers in the IT Services industry. While DPSI is still in line with the averages on profitability rating, there are concerns on its financial health. DPSI does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year DPSI was profitable.
In the past year DPSI had a positive cash flow from operations.
Each year in the past 5 years DPSI has been profitable.
DPSI had a positive operating cash flow in each of the past 5 years.
DPSI Yearly Net Income VS EBIT VS OCF VS FCFDPSI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2018 2019 2020 2021 2022 2023 0 5M -5M 10M

1.2 Ratios

DPSI has a Return On Assets (1.09%) which is in line with its industry peers.
DPSI has a Return On Equity of 4.15%. This is in the better half of the industry: DPSI outperforms 61.73% of its industry peers.
With a decent Return On Invested Capital value of 5.33%, DPSI is doing good in the industry, outperforming 62.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DPSI is below the industry average of 10.13%.
Industry RankSector Rank
ROA 1.09%
ROE 4.15%
ROIC 5.33%
ROA(3y)4.28%
ROA(5y)4.58%
ROE(3y)13.8%
ROE(5y)15.1%
ROIC(3y)7.86%
ROIC(5y)9.46%
DPSI Yearly ROA, ROE, ROICDPSI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2018 2019 2020 2021 2022 2023 0 50 100

1.3 Margins

DPSI has a Profit Margin (0.69%) which is comparable to the rest of the industry.
DPSI's Profit Margin has declined in the last couple of years.
DPSI has a Operating Margin (2.35%) which is comparable to the rest of the industry.
DPSI's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 25.21%, DPSI is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
DPSI's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 2.35%
PM (TTM) 0.69%
GM 25.21%
OM growth 3Y-13.39%
OM growth 5Y24.63%
PM growth 3Y-21.89%
PM growth 5Y-28.24%
GM growth 3Y2.16%
GM growth 5Y3.85%
DPSI Yearly Profit, Operating, Gross MarginsDPSI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2018 2019 2020 2021 2022 2023 0 10 -10 20

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3

2. Health

2.1 Basic Checks

DPSI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DPSI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DPSI has been increased compared to 5 years ago.
Compared to 1 year ago, DPSI has a worse debt to assets ratio.
DPSI Yearly Shares OutstandingDPSI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2018 2019 2020 2021 2022 2023 2M 4M 6M
DPSI Yearly Total Debt VS Total AssetsDPSI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2018 2019 2020 2021 2022 2023 20M 40M 60M

2.2 Solvency

An Altman-Z score of 2.11 indicates that DPSI is not a great score, but indicates only limited risk for bankruptcy at the moment.
DPSI has a Altman-Z score (2.11) which is in line with its industry peers.
The Debt to FCF ratio of DPSI is 1.75, which is an excellent value as it means it would take DPSI, only 1.75 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.75, DPSI is in the better half of the industry, outperforming 72.84% of the companies in the same industry.
DPSI has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DPSI (0.43) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 1.75
Altman-Z 2.11
ROIC/WACC0.55
WACC9.77%
DPSI Yearly LT Debt VS Equity VS FCFDPSI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2018 2019 2020 2021 2022 2023 0 5M 10M 15M

2.3 Liquidity

DPSI has a Current Ratio of 0.84. This is a bad value and indicates that DPSI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.84, DPSI is doing worse than 81.48% of the companies in the same industry.
DPSI has a Quick Ratio of 0.84. This is a bad value and indicates that DPSI is not financially healthy enough and could expect problems in meeting its short term obligations.
DPSI has a Quick ratio of 0.81. This is amonst the worse of the industry: DPSI underperforms 82.72% of its industry peers.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.81
DPSI Yearly Current Assets VS Current LiabilitesDPSI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2018 2019 2020 2021 2022 2023 10M 20M 30M

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3

3. Growth

3.1 Past

DPSI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.00%.
The earnings per share for DPSI have been decreasing by -10.77% on average. This is quite bad
Looking at the last year, DPSI shows a quite strong growth in Revenue. The Revenue has grown by 9.01% in the last year.
Measured over the past years, DPSI shows a very strong growth in Revenue. The Revenue has been growing by 26.88% on average per year.
EPS 1Y (TTM)-74%
EPS 3Y-7.72%
EPS 5Y-10.77%
EPS Q2Q%-168.75%
Revenue 1Y (TTM)9.01%
Revenue growth 3Y22.19%
Revenue growth 5Y26.88%
Sales Q2Q%-5.12%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y32.6%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.63%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
DPSI Yearly Revenue VS EstimatesDPSI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
DPSI Yearly EPS VS EstimatesDPSI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2018 2019 2020 2021 2022 2023 2024 0 -100 -200 -300 -400

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 78.65, which means the current valuation is very expensive for DPSI.
Compared to the rest of the industry, the Price/Earnings ratio of DPSI indicates a slightly more expensive valuation: DPSI is more expensive than 60.49% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. DPSI is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 19.28, the valuation of DPSI can be described as rather expensive.
Based on the Price/Forward Earnings ratio, DPSI is valued a bit cheaper than 65.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DPSI to the average of the S&P500 Index (22.68), we can say DPSI is valued inline with the index average.
Industry RankSector Rank
PE 78.65
Fwd PE 19.28
DPSI Price Earnings VS Forward Price EarningsDPSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

DPSI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DPSI is cheaper than 61.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DPSI is valued cheaply inside the industry as 92.59% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 9.41
EV/EBITDA 14.96
DPSI Per share dataDPSI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DPSI does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.41
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

DPSI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DECISIONPOINT SYSTEMS INC/CA

NYSEARCA:DPSI (7/3/2024, 8:02:22 PM)

10.225

+0.03 (+0.25%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)05-15 2024-05-15/bmo
Earnings (Next)08-12 2024-08-12/bmo
Inst Owners0.17%
Inst Owner Change0%
Ins Owners11.66%
Ins Owner Change0%
Market Cap78.53M
Analysts82.86
Price Target10.71 (4.74%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend13.2
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)-214.38%
Min EPS beat(2)-279.74%
Max EPS beat(2)-149.02%
EPS beat(4)2
Avg EPS beat(4)-28.51%
Min EPS beat(4)-279.74%
Max EPS beat(4)218.63%
EPS beat(8)6
Avg EPS beat(8)197.18%
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)0.5%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)3.84%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-5.65%
Max Revenue beat(4)3.84%
Revenue beat(8)6
Avg Revenue beat(8)14.94%
Revenue beat(12)9
Avg Revenue beat(12)12.42%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 78.65
Fwd PE 19.28
P/S 0.69
P/FCF 9.41
P/OCF 8.52
P/B 4.13
P/tB N/A
EV/EBITDA 14.96
EPS(TTM)0.13
EY1.27%
EPS(NY)0.53
Fwd EY5.19%
FCF(TTM)1.09
FCFY10.62%
OCF(TTM)1.2
OCFY11.74%
SpS14.87
BVpS2.47
TBVpS-1.37
PEG (NY)2.41
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.09%
ROE 4.15%
ROCE 7.63%
ROIC 5.33%
ROICexc 6.39%
ROICexgc N/A
OM 2.35%
PM (TTM) 0.69%
GM 25.21%
FCFM 7.31%
ROA(3y)4.28%
ROA(5y)4.58%
ROE(3y)13.8%
ROE(5y)15.1%
ROIC(3y)7.86%
ROIC(5y)9.46%
ROICexc(3y)10.39%
ROICexc(5y)11.7%
ROICexgc(3y)124.92%
ROICexgc(5y)98.16%
ROCE(3y)11.25%
ROCE(5y)14.5%
ROICexcg growth 3Y16.27%
ROICexcg growth 5Y34.66%
ROICexc growth 3Y-15.45%
ROICexc growth 5Y28.06%
OM growth 3Y-13.39%
OM growth 5Y24.63%
PM growth 3Y-21.89%
PM growth 5Y-28.24%
GM growth 3Y2.16%
GM growth 5Y3.85%
F-Score6
Asset Turnover1.58
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF 1.75
Debt/EBITDA 1.38
Cap/Depr 27.87%
Cap/Sales 0.77%
Interest Coverage 4.47
Cash Conversion 157.96%
Profit Quality 1058.63%
Current Ratio 0.84
Quick Ratio 0.81
Altman-Z 2.11
F-Score6
WACC9.77%
ROIC/WACC0.55
Cap/Depr(3y)38.91%
Cap/Depr(5y)29.76%
Cap/Sales(3y)0.95%
Cap/Sales(5y)0.68%
Profit Quality(3y)210.85%
Profit Quality(5y)208.17%
High Growth Momentum
Growth
EPS 1Y (TTM)-74%
EPS 3Y-7.72%
EPS 5Y-10.77%
EPS Q2Q%-168.75%
EPS Next Y32.6%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.01%
Revenue growth 3Y22.19%
Revenue growth 5Y26.88%
Sales Q2Q%-5.12%
Revenue Next Year5.63%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-50.19%
EBIT growth 3Y5.83%
EBIT growth 5Y58.13%
EBIT Next Year89.21%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-30.59%
FCF growth 3Y-4.37%
FCF growth 5Y15.53%
OCF growth 1Y-27.76%
OCF growth 3Y2.21%
OCF growth 5Y19.65%