DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
TSX:DCM - CA23761M1023 - Common Stock
1.52 CAD
-0.01 (-0.65%)
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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
DCM had positive earnings in 4 of the past 5 years.
DCM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.82%, DCM perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
DCM's Return On Equity of 19.17% is amongst the best of the industry. DCM outperforms 87.50% of its industry peers.
DCM's Return On Invested Capital of 8.78% is amongst the best of the industry. DCM outperforms 87.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DCM is significantly above the industry average of 6.97%.
The 3 year average ROIC (13.16%) for DCM is well above the current ROIC(8.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 19.17% | ||
| ROIC | 8.78% |
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
DCM has a Profit Margin of 1.48%. This is in the better half of the industry: DCM outperforms 62.50% of its industry peers.
DCM's Profit Margin has improved in the last couple of years.
DCM has a Operating Margin of 8.40%. 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's Gross Margin of 27.07% is in line compared to the rest of the industry. DCM outperforms 58.33% of its industry peers.
DCM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.4% | ||
| PM (TTM) | 1.48% | ||
| GM | 27.07% |
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
DCM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, DCM has more shares outstanding
Compared to 5 years ago, DCM has more shares outstanding
Compared to 1 year ago, DCM has a worse debt to assets ratio.
2.2 Solvency
DCM has an Altman-Z score of 0.96. This is a bad value and indicates that DCM is not financially healthy and even has some risk of bankruptcy.
DCM has a worse Altman-Z score (0.96) than 62.50% of its industry peers.
The Debt to FCF ratio of DCM is 58.28, which is on the high side as it means it would take DCM, 58.28 years of fcf income to pay off all of its debts.
DCM has a Debt to FCF ratio (58.28) which is in line with its industry peers.
DCM has a Debt/Equity ratio of 6.79. This is a high value indicating a heavy dependency on external financing.
DCM's Debt to Equity ratio of 6.79 is on the low side compared to the rest of the industry. DCM is outperformed by 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.79 | ||
| Debt/FCF | 58.28 | ||
| Altman-Z | 0.96 |
ROIC/WACC1.39
WACC6.3%
2.3 Liquidity
DCM has a Current Ratio of 1.77. This is a normal value and indicates that DCM is financially healthy and should not expect problems in meeting its short term obligations.
DCM has a Current ratio of 1.77. This is in the better half of the industry: DCM outperforms 70.83% of its industry peers.
DCM has a Quick Ratio of 1.44. This is a normal value and indicates that DCM is financially healthy and should not expect problems in meeting its short term obligations.
DCM has a Quick ratio of 1.44. This is in the better half of the industry: DCM outperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
DCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 222.64%, which is quite impressive.
DCM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.16% yearly.
DCM shows a decrease in Revenue. In the last year, the revenue decreased by -8.92%.
The Revenue has been growing by 11.15% on average over the past years. This is quite good.
EPS 1Y (TTM)222.64%
EPS 3Y22.16%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-8.92%
Revenue growth 3Y26.82%
Revenue growth 5Y11.15%
Sales Q2Q%-9.51%
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 38.42% on average per year.
The Revenue is expected to grow by 3.12% on average over the next years.
EPS Next Y155.31%
EPS Next 2Y8.55%
EPS Next 3Y57.59%
EPS Next 5Y38.42%
Revenue Next Year13.13%
Revenue Next 2Y12.14%
Revenue Next 3Y5.2%
Revenue Next 5Y3.12%
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 cheaply with a Price/Earnings ratio of 7.60.
Based on the Price/Earnings ratio, DCM is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.13, DCM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.17, the valuation of DCM can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DCM indicates a rather cheap valuation: DCM is cheaper than 95.83% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of DCM to the average of the S&P500 Index (22.76), we can say DCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 7.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DCM is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DCM indicates a somewhat cheap valuation: DCM is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.57 | ||
| EV/EBITDA | 5.23 |
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 has an outstanding profitability rating, which 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)0.05
PEG (5Y)N/A
EPS Next 2Y8.55%
EPS Next 3Y57.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.54%, DCM is a good candidate for dividend investing.
DCM's Dividend Yield is rather good when compared to the industry average which is at 2.33. DCM pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, DCM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
5.2 History
DCM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y8.55%
EPS Next 3Y57.59%
TSX:DCM (8/29/2025, 7:00:00 PM)
1.52
-0.01 (-0.65%)
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 Cap84.09M
Analysts85
Price Target3.4 (123.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)106.12%
Min EPS beat(2)35.01%
Max EPS beat(2)177.23%
EPS beat(4)2
Avg EPS beat(4)12.06%
Min EPS beat(4)-100%
Max EPS beat(4)177.23%
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)-2.46%
Min Revenue beat(2)-5.08%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-9.79%
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)-9.61%
PT rev (3m)-16.67%
EPS NQ rev (1m)-120%
EPS NQ rev (3m)-113.16%
EPS NY rev (1m)48.37%
EPS NY rev (3m)48.37%
Revenue NQ rev (1m)-7.92%
Revenue NQ rev (3m)-9.04%
Revenue NY rev (1m)12.96%
Revenue NY rev (3m)10.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 7.17 | ||
| P/S | 0.18 | ||
| P/FCF | 18.57 | ||
| P/OCF | 6.59 | ||
| P/B | 2.35 | ||
| P/tB | 15.44 | ||
| EV/EBITDA | 5.23 |
EPS(TTM)0.2
EY13.16%
EPS(NY)0.21
Fwd EY13.95%
FCF(TTM)0.08
FCFY5.38%
OCF(TTM)0.23
OCFY15.18%
SpS8.36
BVpS0.65
TBVpS0.1
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 19.17% | ||
| ROCE | 12.9% | ||
| ROIC | 8.78% | ||
| ROICexc | 8.87% | ||
| ROICexgc | 9.87% | ||
| OM | 8.4% | ||
| PM (TTM) | 1.48% | ||
| GM | 27.07% | ||
| FCFM | 0.98% |
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-Score7
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.79 | ||
| Debt/FCF | 58.28 | ||
| Debt/EBITDA | 3.68 | ||
| Cap/Depr | 30.34% | ||
| Cap/Sales | 1.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 19.34% | ||
| Profit Quality | 66.02% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 0.96 |
F-Score7
WACC6.3%
ROIC/WACC1.39
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)222.64%
EPS 3Y22.16%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y155.31%
EPS Next 2Y8.55%
EPS Next 3Y57.59%
EPS Next 5Y38.42%
Revenue 1Y (TTM)-8.92%
Revenue growth 3Y26.82%
Revenue growth 5Y11.15%
Sales Q2Q%-9.51%
Revenue Next Year13.13%
Revenue Next 2Y12.14%
Revenue Next 3Y5.2%
Revenue Next 5Y3.12%
EBIT growth 1Y10.61%
EBIT growth 3Y43.54%
EBIT growth 5Y80.43%
EBIT Next Year196.88%
EBIT Next 3Y47.17%
EBIT Next 5Y35.26%
FCF growth 1Y-86.17%
FCF growth 3Y-20.16%
FCF growth 5YN/A
OCF growth 1Y-63.73%
OCF growth 3Y-2.81%
OCF growth 5YN/A