VECIMA NETWORKS INC (VCM.CA) Stock Fundamental Analysis
TSX:VCM - Toronto Stock Exchange - CA92241Y1016 - Common Stock - Currency: CAD
Overall VCM gets a fundamental rating of 5 out of 10. We evaluated VCM against 10 industry peers in the Communications Equipment industry. VCM has only an average score on both its financial health and profitability. VCM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year VCM was profitable.
In the past year VCM had a positive cash flow from operations.
Of the past 5 years VCM 4 years were profitable.
VCM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of VCM (2.27%) is better than 80.00% of its industry peers.
VCM has a better Return On Equity (3.57%) than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.51%, VCM belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
VCM had an Average Return On Invested Capital over the past 3 years of 8.67%. This is in line with the industry average of 7.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 3.57% | ||
| ROIC | 8.51% |
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 has a Profit Margin of 2.59%. This is in the better half of the industry: VCM outperforms 80.00% of its industry peers.
VCM's Operating Margin of 8.55% is fine compared to the rest of the industry. VCM outperforms 80.00% of its industry peers.
Looking at the Gross Margin, with a value of 43.13%, VCM is in line with its industry, outperforming 50.00% of the companies in the same industry.
VCM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.55% | ||
| PM (TTM) | 2.59% | ||
| GM | 43.13% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VCM is destroying value.
Compared to 1 year ago, VCM has about the same amount of shares outstanding.
VCM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VCM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.20 indicates that VCM is not in any danger for bankruptcy at the moment.
The Altman-Z score of VCM (3.20) is better than 70.00% of its industry peers.
VCM has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as VCM would need 3.57 years to pay back of all of its debts.
VCM's Debt to FCF ratio of 3.57 is in line compared to the rest of the industry. VCM outperforms 60.00% of its industry peers.
VCM has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
VCM has a worse Debt to Equity ratio (0.20) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.91
WACC9.39%
2.3 Liquidity
VCM has a Current Ratio of 1.55. This is a normal value and indicates that VCM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of VCM (1.55) is comparable to the rest of the industry.
VCM has a Quick Ratio of 1.55. This is a bad value and indicates that VCM is not financially healthy enough and could expect problems in meeting its short term obligations.
VCM has a worse Quick ratio (0.39) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
VCM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.82%.
Looking at the last year, VCM shows a quite strong growth in Revenue. The Revenue has grown by 15.70% 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)-35.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-266.67%
Revenue 1Y (TTM)15.7%
Revenue growth 3Y32.83%
Revenue growth 5Y27.91%
Sales Q2Q%14.96%
3.2 Future
Based on estimates for the next years, VCM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.05% on average per year.
The Revenue is expected to grow by 8.54% on average over the next years. This is quite good.
EPS Next Y-90.15%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.99%
Revenue Next 2Y8.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
VCM is valuated rather expensively with a Price/Earnings ratio of 23.23.
Based on the Price/Earnings ratio, VCM is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of VCM to the average of the S&P500 Index (28.98), we can say VCM is valued inline with the index average.
VCM is valuated reasonably with a Price/Forward Earnings ratio of 9.05.
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.
The average S&P500 Price/Forward Earnings ratio is at 21.38. VCM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.23 | ||
| Fwd PE | 9.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VCM indicates a rather cheap valuation: VCM is cheaper than 100.00% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VCM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.82 | ||
| EV/EBITDA | 5.18 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VCM's earnings are expected to grow with 16.05% in the coming years.
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 2.47%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of VCM has falen by -28.13%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
VCM's Dividend Yield is a higher than the industry average which is at 5.06.
VCM's Dividend Yield is comparable with the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.05%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
64.33% of the earnings are spent on dividend by VCM. This is not a sustainable payout ratio.
The dividend of VCM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP64.33%
EPS Next 2Y16.05%
EPS Next 3YN/A
TSX:VCM (4/29/2025, 7:00:00 PM)
9.99
0 (0%)
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 Cap242.86M
Analysts77.5
Price Target19.89 (99.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend0.22
Dividend Growth(5Y)0.05%
DP64.33%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-179.97%
Min EPS beat(2)-298.02%
Max EPS beat(2)-61.92%
EPS beat(4)0
Avg EPS beat(4)-94.12%
Min EPS beat(4)-298.02%
Max EPS beat(4)-2.43%
EPS beat(8)3
Avg EPS beat(8)-12.29%
EPS beat(12)7
Avg EPS beat(12)53.41%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-9.18%
Min Revenue beat(2)-14.45%
Max Revenue beat(2)-3.92%
Revenue beat(4)0
Avg Revenue beat(4)-6.16%
Min Revenue beat(4)-14.45%
Max Revenue beat(4)-0.64%
Revenue beat(8)1
Avg Revenue beat(8)-3.05%
Revenue beat(12)5
Avg Revenue beat(12)1.1%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-25.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-91.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-21.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.23 | ||
| Fwd PE | 9.05 | ||
| P/S | 0.76 | ||
| P/FCF | 15.82 | ||
| P/OCF | 5.15 | ||
| P/B | 1.04 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 5.18 |
EPS(TTM)0.43
EY4.3%
EPS(NY)1.1
Fwd EY11.05%
FCF(TTM)0.63
FCFY6.32%
OCF(TTM)1.94
OCFY19.4%
SpS13.19
BVpS9.57
TBVpS4.58
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 3.57% | ||
| ROCE | 10.95% | ||
| ROIC | 8.51% | ||
| ROICexc | 8.58% | ||
| ROICexgc | 15.12% | ||
| OM | 8.55% | ||
| PM (TTM) | 2.59% | ||
| GM | 43.13% | ||
| FCFM | 4.78% |
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 Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | 135.81% | ||
| Cap/Sales | 9.91% | ||
| Interest Coverage | 3.2 | ||
| Cash Conversion | 92.71% | ||
| Profit Quality | 184.53% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 3.2 |
F-Score4
WACC9.39%
ROIC/WACC0.91
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)-35.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-266.67%
EPS Next Y-90.15%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.7%
Revenue growth 3Y32.83%
Revenue growth 5Y27.91%
Sales Q2Q%14.96%
Revenue Next Year1.99%
Revenue Next 2Y8.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y35.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year5.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y140.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y464.19%
OCF growth 3Y-48.66%
OCF growth 5Y-25.01%