VECIMA NETWORKS INC (VCM.CA) Stock Fundamental Analysis
TSX:VCM - Toronto Stock Exchange - CA92241Y1016 - Common Stock - Currency: CAD
Taking everything into account, VCM scores 5 out of 10 in our fundamental rating. VCM was compared to 10 industry peers in the Communications Equipment industry. There are concerns on the financial health of VCM while its profitability can be described as average. VCM is not valued too expensively and it also shows a decent growth rate. VCM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
VCM had positive earnings in the past year.
VCM had a positive operating cash flow in the past year.
VCM had positive earnings in 4 of the past 5 years.
VCM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.36%, VCM is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Return On Equity of VCM (8.41%) is better than 90.00% of its industry peers.
VCM has a Return On Invested Capital of 9.79%. This is amongst the best in the industry. VCM outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VCM is in line with the industry average of 9.02%.
The last Return On Invested Capital (9.79%) for VCM is above the 3 year average (8.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 8.41% | ||
| ROIC | 9.79% |
ROA(3y)5.5%
ROA(5y)3.45%
ROE(3y)8.53%
ROE(5y)5.28%
ROIC(3y)8.67%
ROIC(5y)N/A
1.3 Margins
VCM's Profit Margin of 6.35% is fine compared to the rest of the industry. VCM outperforms 70.00% of its industry peers.
VCM's Operating Margin of 10.44% is fine compared to the rest of the industry. VCM outperforms 70.00% of its industry peers.
Looking at the Gross Margin, with a value of 45.60%, VCM is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of VCM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.44% | ||
| PM (TTM) | 6.35% | ||
| GM | 45.6% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.45%
GM growth 5Y-2.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VCM is still creating some value.
VCM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, VCM has more shares outstanding
Compared to 1 year ago, VCM has a worse debt to assets ratio.
2.2 Solvency
VCM has an Altman-Z score of 3.37. This indicates that VCM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VCM (3.37) is better than 70.00% of its industry peers.
VCM has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VCM (0.22) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.37 |
ROIC/WACC1.07
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.73 indicates that VCM should not have too much problems paying its short term obligations.
VCM has a Current ratio (1.73) which is comparable to the rest of the industry.
VCM has a Quick Ratio of 1.73. This is a bad value and indicates that VCM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of VCM (0.52) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
The earnings per share for VCM have decreased by -4.60% in the last year.
Looking at the last year, VCM shows a small growth in Revenue. The Revenue has grown by 6.86% in the last year.
The Revenue has been growing by 27.91% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-4.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%11.11%
Revenue 1Y (TTM)6.86%
Revenue growth 3Y32.83%
Revenue growth 5Y27.91%
Sales Q2Q%33.23%
3.2 Future
VCM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.05% yearly.
VCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.72% yearly.
EPS Next Y-90.15%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.81%
Revenue Next 2Y8.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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
VCM is valuated correctly with a Price/Earnings ratio of 12.95.
Compared to the rest of the industry, the Price/Earnings ratio of VCM indicates a rather cheap valuation: VCM is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.53, VCM is valued rather cheaply.
VCM is valuated reasonably with a Price/Forward Earnings ratio of 9.73.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VCM indicates a rather cheap valuation: VCM is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.65, VCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 9.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VCM is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.02 |
4.3 Compensation for Growth
VCM has a very decent profitability rating, which may justify a higher PE ratio.
VCM's earnings are expected to grow with 16.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VCM has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
The stock price of VCM dropped by -37.43% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.29, VCM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, VCM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of VCM has a limited annual growth rate of 0.05%.
VCM has been paying a dividend for at least 10 years, so it has a reliable track record.
VCM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.05%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
27.03% of the earnings are spent on dividend by VCM. This is a low number and sustainable payout ratio.
VCM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.03%
EPS Next 2Y16.05%
EPS Next 3YN/A
TSX:VCM (2/21/2025, 7:00:00 PM)
10.75
-0.45 (-4.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners15.5%
Inst Owner ChangeN/A
Ins Owners1.62%
Ins Owner ChangeN/A
Market Cap261.33M
Analysts80
Price Target19.89 (85.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend0.22
Dividend Growth(5Y)0.05%
DP27.03%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-32.17%
Min EPS beat(2)-61.92%
Max EPS beat(2)-2.43%
EPS beat(4)1
Avg EPS beat(4)17.27%
Min EPS beat(4)-61.92%
Max EPS beat(4)147.53%
EPS beat(8)4
Avg EPS beat(8)28.8%
EPS beat(12)8
Avg EPS beat(12)116.27%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.78%
Min Revenue beat(2)-5.64%
Max Revenue beat(2)-3.92%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-5.64%
Max Revenue beat(4)-0.36%
Revenue beat(8)2
Avg Revenue beat(8)-0.93%
Revenue beat(12)5
Avg Revenue beat(12)2.22%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-25.71%
PT rev (3m)-30.36%
EPS NQ rev (1m)-13.79%
EPS NQ rev (3m)-13.79%
EPS NY rev (1m)-91.18%
EPS NY rev (3m)-93.5%
Revenue NQ rev (1m)-2.28%
Revenue NQ rev (3m)-2.28%
Revenue NY rev (1m)-11.04%
Revenue NY rev (3m)-18.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 9.73 | ||
| P/S | 0.84 | ||
| P/FCF | N/A | ||
| P/OCF | 13.96 | ||
| P/B | 1.11 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 5.02 |
EPS(TTM)0.83
EY7.72%
EPS(NY)1.1
Fwd EY10.27%
FCF(TTM)-0.49
FCFYN/A
OCF(TTM)0.77
OCFY7.16%
SpS12.81
BVpS9.68
TBVpS5.13
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 8.41% | ||
| ROCE | 12.74% | ||
| ROIC | 9.79% | ||
| ROICexc | 9.86% | ||
| ROICexgc | 16% | ||
| OM | 10.44% | ||
| PM (TTM) | 6.35% | ||
| GM | 45.6% | ||
| FCFM | N/A |
ROA(3y)5.5%
ROA(5y)3.45%
ROE(3y)8.53%
ROE(5y)5.28%
ROIC(3y)8.67%
ROIC(5y)N/A
ROICexc(3y)8.83%
ROICexc(5y)N/A
ROICexgc(3y)14.65%
ROICexgc(5y)N/A
ROCE(3y)11%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.45%
GM growth 5Y-2.68%
F-Score4
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | 135.22% | ||
| Cap/Sales | 9.87% | ||
| Interest Coverage | 4.04 | ||
| Cash Conversion | 33.9% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 3.37 |
F-Score4
WACC9.18%
ROIC/WACC1.07
Cap/Depr(3y)132.3%
Cap/Depr(5y)121.12%
Cap/Sales(3y)10.49%
Cap/Sales(5y)12.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.6%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%11.11%
EPS Next Y-90.15%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.86%
Revenue growth 3Y32.83%
Revenue growth 5Y27.91%
Sales Q2Q%33.23%
Revenue Next Year2.81%
Revenue Next 2Y8.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23.74%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year75.63%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y50.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2736.52%
OCF growth 3Y-48.66%
OCF growth 5Y-25.01%