DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
TSX:DCM - Toronto Stock Exchange - CA23761M1023 - Common Stock - Currency: CAD
DCM gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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
In the past year DCM was profitable.
DCM had a positive operating cash flow in the past year.
Of the past 5 years DCM 4 years were profitable.
In the past 5 years DCM always reported a positive cash flow from operatings.
1.2 Ratios
DCM has a Return On Assets (1.81%) which is comparable to the rest of the industry.
With an excellent Return On Equity value of 22.25%, DCM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
DCM has a Return On Invested Capital of 8.75%. This is amongst the best in the industry. DCM outperforms 91.67% of its industry peers.
DCM had an Average Return On Invested Capital over the past 3 years of 13.16%. This is significantly above the industry average of 7.99%.
The last Return On Invested Capital (8.75%) for DCM is well below the 3 year average (13.16%), which needs to be investigated, but indicates that DCM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | 22.25% | ||
| ROIC | 8.75% |
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 better Profit Margin (1.52%) than 62.50% of its industry peers.
In the last couple of years the Profit Margin of DCM has grown nicely.
DCM's Operating Margin of 8.41% is fine compared to the rest of the industry. DCM outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of DCM has grown nicely.
DCM has a Gross Margin (27.20%) which is comparable to the rest of the industry.
DCM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.41% | ||
| PM (TTM) | 1.52% | ||
| GM | 27.2% |
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
DCM has more shares outstanding than it did 5 years ago.
DCM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.97, we must say that DCM is in the distress zone and has some risk of bankruptcy.
DCM has a worse Altman-Z score (0.97) than 62.50% of its industry peers.
The Debt to FCF ratio of DCM is 79.63, which is on the high side as it means it would take DCM, 79.63 years of fcf income to pay off all of its debts.
DCM has a Debt to FCF ratio of 79.63. This is comparable to the rest of the industry: DCM outperforms 41.67% of its industry peers.
A Debt/Equity ratio of 7.82 is on the high side and indicates that DCM has dependencies on debt financing.
DCM has a Debt to Equity ratio of 7.82. This is in the lower half of the industry: DCM underperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.82 | ||
| Debt/FCF | 79.63 | ||
| Altman-Z | 0.97 |
ROIC/WACC1.4
WACC6.26%
2.3 Liquidity
A Current Ratio of 1.71 indicates that DCM should not have too much problems paying its short term obligations.
DCM's Current ratio of 1.71 is fine compared to the rest of the industry. DCM outperforms 70.83% of its industry peers.
A Quick Ratio of 1.42 indicates that DCM should not have too much problems paying its short term obligations.
DCM's Quick ratio of 1.42 is fine compared to the rest of the industry. DCM outperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 154.77% over the past year.
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 -5.30%.
The Revenue has been growing by 11.15% on average over the past years. This is quite good.
EPS 1Y (TTM)154.77%
EPS 3Y22.16%
EPS 5YN/A
EPS Q2Q%256.8%
Revenue 1Y (TTM)-5.3%
Revenue growth 3Y26.82%
Revenue growth 5Y11.15%
Sales Q2Q%-4.32%
3.2 Future
The Earnings Per Share is expected to grow by 38.26% on average over the next years. This is a very strong growth
DCM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.03% yearly.
EPS Next Y72.08%
EPS Next 2Y53.51%
EPS Next 3Y57.59%
EPS Next 5Y38.26%
Revenue Next Year-5.19%
Revenue Next 2Y-0.58%
Revenue Next 3Y2.54%
Revenue Next 5Y1.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 8.60 indicates a reasonable valuation of DCM.
DCM's Price/Earnings ratio is rather cheap when compared to the industry. DCM is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. DCM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.05 indicates a rather cheap valuation of DCM.
Based on the Price/Forward Earnings ratio, DCM is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, DCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 4.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DCM indicates a rather cheap valuation: DCM is cheaper than 91.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DCM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.61 | ||
| EV/EBITDA | 5.46 |
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.
DCM's earnings are expected to grow with 57.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y53.51%
EPS Next 3Y57.59%
5. Dividend
5.1 Amount
DCM has a Yearly Dividend Yield of 5.78%, which is a nice return.
In the last 3 months the price of DCM has falen by -24.23%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.40, DCM pays a better dividend. On top of this DCM pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, DCM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
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 2Y53.51%
EPS Next 3Y57.59%
TSX:DCM (6/6/2025, 7:00:00 PM)
1.72
-0.01 (-0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners15.16%
Inst Owner ChangeN/A
Ins Owners22.52%
Ins Owner ChangeN/A
Market Cap95.13M
Analysts85
Price Target3.76 (118.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-14.49%
Min EPS beat(2)-64%
Max EPS beat(2)35.01%
EPS beat(4)1
Avg EPS beat(4)-39.92%
Min EPS beat(4)-100%
Max EPS beat(4)35.01%
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)-9.6%
Min Revenue beat(2)-19.37%
Max Revenue beat(2)0.17%
Revenue beat(4)1
Avg Revenue beat(4)-10.3%
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)-7.81%
PT rev (3m)-24.36%
EPS NQ rev (1m)-58.82%
EPS NQ rev (3m)-54.84%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.91%
Revenue NQ rev (1m)-4.44%
Revenue NQ rev (3m)-7.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 4.05 | ||
| P/S | 0.2 | ||
| P/FCF | 27.61 | ||
| P/OCF | 6.41 | ||
| P/B | 2.94 | ||
| P/tB | 54.24 | ||
| EV/EBITDA | 5.46 |
EPS(TTM)0.2
EY11.63%
EPS(NY)0.42
Fwd EY24.66%
FCF(TTM)0.06
FCFY3.62%
OCF(TTM)0.27
OCFY15.59%
SpS8.58
BVpS0.59
TBVpS0.03
PEG (NY)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.81% | ||
| ROE | 22.25% | ||
| ROCE | 12.85% | ||
| ROIC | 8.75% | ||
| ROICexc | 8.96% | ||
| ROICexgc | 9.96% | ||
| OM | 8.41% | ||
| PM (TTM) | 1.52% | ||
| GM | 27.2% | ||
| FCFM | 0.73% |
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-Score6
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.82 | ||
| Debt/FCF | 79.63 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 43.11% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 22.37% | ||
| Profit Quality | 47.8% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 0.97 |
F-Score6
WACC6.26%
ROIC/WACC1.4
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)154.77%
EPS 3Y22.16%
EPS 5YN/A
EPS Q2Q%256.8%
EPS Next Y72.08%
EPS Next 2Y53.51%
EPS Next 3Y57.59%
EPS Next 5Y38.26%
Revenue 1Y (TTM)-5.3%
Revenue growth 3Y26.82%
Revenue growth 5Y11.15%
Sales Q2Q%-4.32%
Revenue Next Year-5.19%
Revenue Next 2Y-0.58%
Revenue Next 3Y2.54%
Revenue Next 5Y1.03%
EBIT growth 1Y18.44%
EBIT growth 3Y43.54%
EBIT growth 5Y80.43%
EBIT Next Year136.35%
EBIT Next 3Y47.17%
EBIT Next 5Y35.26%
FCF growth 1Y-84.6%
FCF growth 3Y-20.16%
FCF growth 5YN/A
OCF growth 1Y-38.91%
OCF growth 3Y-2.81%
OCF growth 5YN/A