DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
TSX:DCM - Toronto Stock Exchange - CA23761M1023 - Common Stock - Currency: CAD
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. While DCM has a great profitability rating, there are quite some concerns on its financial health. DCM is valued quite cheap, while showing a decent growth score. This is a good 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.
DCM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DCM has a Return On Assets of 1.81%. This is comparable to the rest of the industry: DCM outperforms 58.33% of its industry peers.
DCM has a Return On Equity of 22.25%. This is amongst the best in the industry. DCM outperforms 87.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.75%, DCM belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DCM is significantly above the industry average of 7.19%.
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's Profit Margin of 1.52% is fine compared to the rest 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 8.41%. This is in the better half of the industry: DCM outperforms 70.83% of its industry peers.
In the last couple of years the Operating Margin of DCM has grown nicely.
DCM's Gross Margin of 27.20% 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 | 8.41% | ||
| 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
Compared to 5 years ago, DCM has more shares outstanding
The debt/assets ratio for DCM is higher compared to a year ago.
2.2 Solvency
DCM has an Altman-Z score of 0.97. This is a bad value and indicates that DCM is not financially healthy and even has some risk of bankruptcy.
DCM has a Altman-Z score of 0.97. This is in the lower half of the industry: DCM underperforms 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's Debt to FCF ratio of 79.63 is in line compared to the rest of the industry. DCM outperforms 45.83% 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.
With a Debt to Equity ratio value of 7.82, DCM is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.82 | ||
| Debt/FCF | 79.63 | ||
| Altman-Z | 0.97 |
ROIC/WACC1.39
WACC6.31%
2.3 Liquidity
A Current Ratio of 1.71 indicates that DCM should not have too much problems paying its short term obligations.
DCM has a better Current ratio (1.71) than 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
DCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 154.77%, 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.
The Revenue has decreased by -5.30% in the past year.
DCM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.15% yearly.
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
DCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.25% yearly.
DCM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.02% yearly.
EPS Next Y72.08%
EPS Next 2Y53.51%
EPS Next 3Y57.59%
EPS Next 5Y38.25%
Revenue Next Year-5.19%
Revenue Next 2Y-0.58%
Revenue Next 3Y2.54%
Revenue Next 5Y1.02%
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 reasonably with a Price/Earnings ratio of 8.60.
Based on the Price/Earnings ratio, DCM is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.50. DCM is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 4.05, 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 91.67% of the companies listed in the same industry.
DCM is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.6 | ||
| Fwd PE | 4.05 |
4.2 Price Multiples
DCM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DCM is cheaper than 95.83% of the companies in the same industry.
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 | 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.
The excellent profitability rating of DCM 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
With a Yearly Dividend Yield of 5.85%, DCM is a good candidate for dividend investing.
DCM's Dividend Yield is rather good when compared to the industry average which is at 2.23. DCM pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, DCM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.85% |
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 (7/18/2025, 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 Owners14.79%
Inst Owner ChangeN/A
Ins Owners22.78%
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 | 5.85% |
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)0%
PT rev (3m)-7.81%
EPS NQ rev (1m)-14.29%
EPS NQ rev (3m)-64.71%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.68%
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
WACC6.31%
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)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 5Y38.25%
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 5Y1.02%
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