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 23 industry peers in the Commercial Services & Supplies industry. While DCM has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on DCM.
1. Profitability
1.1 Basic Checks
In the past year DCM was profitable.
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
The Return On Assets of DCM (0.91%) is comparable to the rest of the industry.
DCM's Return On Equity of 8.93% is amongst the best of the industry. DCM outperforms 82.61% of its industry peers.
DCM's Return On Invested Capital of 9.35% is amongst the best of the industry. DCM outperforms 91.30% of its industry peers.
DCM had an Average Return On Invested Capital over the past 3 years of 13.16%. This is above the industry average of 8.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 8.93% | ||
| ROIC | 9.35% |
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
The Profit Margin of DCM (0.74%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DCM has grown nicely.
DCM has a Operating Margin of 8.37%. This is in the better half of the industry: DCM outperforms 73.91% of its industry peers.
In the last couple of years the Operating Margin of DCM has grown nicely.
The Gross Margin of DCM (27.10%) 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 | 8.37% | ||
| PM (TTM) | 0.74% | ||
| GM | 27.1% |
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.
DCM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, DCM has more shares outstanding
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.
Looking at the Altman-Z score, with a value of 0.97, DCM is doing worse than 69.57% of the companies in the same industry.
DCM has a debt to FCF ratio of 21.01. This is a negative value and a sign of low solvency as DCM would need 21.01 years to pay back of all of its debts.
DCM has a Debt to FCF ratio (21.01) which is in line with its industry peers.
A Debt/Equity ratio of 5.71 is on the high side and indicates that DCM has dependencies on debt financing.
The Debt to Equity ratio of DCM (5.71) is worse than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.71 | ||
| Debt/FCF | 21.01 | ||
| Altman-Z | 0.97 |
ROIC/WACC1.55
WACC6.02%
2.3 Liquidity
A Current Ratio of 1.43 indicates that DCM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.43, DCM is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
DCM has a Quick Ratio of 1.19. 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 1.19. This is comparable to the rest of the industry: DCM outperforms 52.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
DCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 119.38%, which is quite impressive.
The Earnings Per Share has been growing by 22.16% on average over the past years. This is a very strong growth
Looking at the last year, DCM shows a small growth in Revenue. The Revenue has grown by 7.20% in the last year.
The Revenue has been growing by 11.15% on average over the past years. This is quite good.
EPS 1Y (TTM)119.38%
EPS 3Y22.16%
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y26.82%
Revenue growth 5Y11.15%
Sales Q2Q%-10.57%
3.2 Future
DCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.83% yearly.
Based on estimates for the next years, DCM will show a small growth in Revenue. The Revenue will grow by 1.45% on average per year.
EPS Next Y72.08%
EPS Next 2Y53.51%
EPS Next 3Y57.59%
EPS Next 5Y38.83%
Revenue Next Year-5.19%
Revenue Next 2Y-0.58%
Revenue Next 3Y2.54%
Revenue Next 5Y1.45%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 9.33, which indicates a very decent valuation of DCM.
DCM's Price/Earnings ratio is rather cheap when compared to the industry. DCM is cheaper than 95.65% of the companies in the same industry.
When comparing the Price/Earnings ratio of DCM to the average of the S&P500 Index (27.85), we can say DCM is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.42, 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 95.65% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.77. DCM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 5.42 |
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 91.30% of the companies listed in the same industry.
DCM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DCM is cheaper than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.7 | ||
| EV/EBITDA | 5.14 |
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 decent 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)0.13
PEG (5Y)N/A
EPS Next 2Y53.51%
EPS Next 3Y57.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.73%, DCM is a good candidate for dividend investing.
DCM's Dividend Yield is rather good when compared to the industry average which is at 2.43. DCM pays more dividend than 100.00% of the companies in the same industry.
DCM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
5.2 History
DCM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y53.51%
EPS Next 3Y57.59%
TSX:DCM (5/1/2025, 7:00:00 PM)
1.68
-0.04 (-2.33%)
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 Cap92.92M
Analysts85
Price Target4.08 (142.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-82%
Min EPS beat(2)-100%
Max EPS beat(2)-64%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)0
Avg Revenue beat(2)-17.12%
Min Revenue beat(2)-19.37%
Max Revenue beat(2)-14.86%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-8.57%
PT rev (3m)-17.95%
EPS NQ rev (1m)-23.26%
EPS NQ rev (3m)-19.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.98%
Revenue NQ rev (1m)-2.76%
Revenue NQ rev (3m)-6.27%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-9.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 5.42 | ||
| P/S | 0.19 | ||
| P/FCF | 7.7 | ||
| P/OCF | 3.76 | ||
| P/B | 2.33 | ||
| P/tB | 10.4 | ||
| EV/EBITDA | 5.14 |
EPS(TTM)0.18
EY10.71%
EPS(NY)0.31
Fwd EY18.44%
FCF(TTM)0.22
FCFY12.99%
OCF(TTM)0.45
OCFY26.62%
SpS8.68
BVpS0.72
TBVpS0.16
PEG (NY)0.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 8.93% | ||
| ROCE | 13.77% | ||
| ROIC | 9.35% | ||
| ROICexc | 9.57% | ||
| ROICexgc | 10.73% | ||
| OM | 8.37% | ||
| PM (TTM) | 0.74% | ||
| GM | 27.1% | ||
| FCFM | 2.52% |
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 Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.71 | ||
| Debt/FCF | 21.01 | ||
| Debt/EBITDA | 3.43 | ||
| Cap/Depr | 48.26% | ||
| Cap/Sales | 2.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.25% | ||
| Profit Quality | 338.18% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 0.97 |
F-Score6
WACC6.02%
ROIC/WACC1.55
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)119.38%
EPS 3Y22.16%
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y72.08%
EPS Next 2Y53.51%
EPS Next 3Y57.59%
EPS Next 5Y38.83%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y26.82%
Revenue growth 5Y11.15%
Sales Q2Q%-10.57%
Revenue Next Year-5.19%
Revenue Next 2Y-0.58%
Revenue Next 3Y2.54%
Revenue Next 5Y1.45%
EBIT growth 1Y50.69%
EBIT growth 3Y43.54%
EBIT growth 5Y80.43%
EBIT Next Year149.55%
EBIT Next 3Y47.17%
EBIT Next 5Y35.26%
FCF growth 1Y-43.71%
FCF growth 3Y-20.16%
FCF growth 5YN/A
OCF growth 1Y-4.1%
OCF growth 3Y-2.81%
OCF growth 5YN/A