DATA COMMUNICATIONS MANAGEME (DCM.CA) Stock Fundamental Analysis
Canada - TSX:DCM - CA23761M1023 - Common Stock
1.4 CAD
0 (0%)
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 has an excellent profitability rating, but there are 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
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
Looking at the Return On Assets, with a value of 1.82%, DCM is in line with its industry, outperforming 58.33% of the companies in the same industry.
The Return On Equity of DCM (19.17%) is better than 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.
Measured over the past 3 years, the Average Return On Invested Capital for DCM is significantly above the industry average of 7.32%.
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
Looking at the Profit Margin, with a value of 1.48%, DCM is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
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.
The Gross Margin of DCM (27.07%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of DCM has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DCM is creating value.
DCM has more shares outstanding than it did 1 year ago.
DCM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DCM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.95, 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 0.95, DCM is doing worse than 62.50% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 58.28, DCM perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
A Debt/Equity ratio of 6.79 is on the high side and indicates that DCM has dependencies on debt financing.
With a Debt to Equity ratio value of 6.79, DCM is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.79 | ||
| Debt/FCF | 58.28 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.44
WACC6.11%
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 better Current ratio (1.77) than 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.
The Quick ratio of DCM (1.44) is better than 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.
The Revenue has decreased by -8.92% in the past year.
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
DCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.29% yearly.
DCM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.02% yearly.
EPS Next Y155.31%
EPS Next 2Y8.55%
EPS Next 3Y57.59%
EPS Next 5Y38.29%
Revenue Next Year13.13%
Revenue Next 2Y12.14%
Revenue Next 3Y5.2%
Revenue Next 5Y3.02%
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
DCM is valuated cheaply with a Price/Earnings ratio of 7.00.
Based on the Price/Earnings ratio, DCM is valued cheaper than 100.00% of the companies in the same industry.
DCM is valuated cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.60, the valuation of DCM can be described as very cheap.
DCM's Price/Forward Earnings ratio is rather cheap when compared to the industry. DCM is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.89, DCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 6.6 |
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.
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 | 17.1 | ||
| EV/EBITDA | 5.13 |
4.3 Compensation for Growth
The 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)0.05
PEG (5Y)N/A
EPS Next 2Y8.55%
EPS Next 3Y57.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.14%, DCM is a good candidate for dividend investing.
The stock price of DCM dropped by -22.22% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
DCM's Dividend Yield is rather good when compared to the industry average which is at 2.37. DCM pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, DCM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
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
DPN/A
EPS Next 2Y8.55%
EPS Next 3Y57.59%
TSX:DCM (9/26/2025, 7:00:00 PM)
1.4
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners14.28%
Inst Owner ChangeN/A
Ins Owners22.56%
Ins Owner ChangeN/A
Market Cap77.45M
Analysts85.71
Price Target3.4 (142.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
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)0%
PT rev (3m)-9.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-113.16%
EPS NY rev (1m)0%
EPS NY rev (3m)48.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 6.6 | ||
| P/S | 0.17 | ||
| P/FCF | 17.1 | ||
| P/OCF | 6.07 | ||
| P/B | 2.16 | ||
| P/tB | 14.22 | ||
| EV/EBITDA | 5.13 |
EPS(TTM)0.2
EY14.29%
EPS(NY)0.21
Fwd EY15.15%
FCF(TTM)0.08
FCFY5.85%
OCF(TTM)0.23
OCFY16.48%
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 | 0.95 |
F-Score7
WACC6.11%
ROIC/WACC1.44
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 5Y38.29%
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 5Y3.02%
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