VECIMA NETWORKS INC (VCM.CA) Stock Fundamental Analysis
TSX:VCM - Toronto Stock Exchange - CA92241Y1016 - Common Stock - Currency: CAD
VCM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 10 industry peers in the Communications Equipment industry. VCM has only an average score on both its financial health and profitability. VCM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year VCM was profitable.
VCM had a positive operating cash flow in the past year.
VCM had positive earnings in 4 of the past 5 years.
Of the past 5 years VCM 4 years had a positive operating cash flow.
1.2 Ratios
VCM's Return On Assets of 2.27% is fine compared to the rest of the industry. VCM outperforms 80.00% of its industry peers.
VCM has a Return On Equity of 3.57%. This is in the better half of the industry: VCM outperforms 80.00% of its industry peers.
With an excellent Return On Invested Capital value of 8.51%, VCM belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VCM is in line with the industry average of 7.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 3.57% | ||
| ROIC | 8.51% |
ROA(3y)5.5%
ROA(5y)3.45%
ROE(3y)8.53%
ROE(5y)5.28%
ROIC(3y)8.67%
ROIC(5y)N/A
1.3 Margins
VCM's Profit Margin of 2.59% is fine compared to the rest of the industry. VCM outperforms 80.00% of its industry peers.
Looking at the Operating Margin, with a value of 8.55%, VCM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Gross Margin of VCM (43.13%) is comparable to the rest of the industry.
VCM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.55% | ||
| PM (TTM) | 2.59% | ||
| GM | 43.13% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.45%
GM growth 5Y-2.68%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VCM is destroying value.
VCM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, VCM has more shares outstanding
The debt/assets ratio for VCM is higher compared to a year ago.
2.2 Solvency
VCM has an Altman-Z score of 3.19. This indicates that VCM is financially healthy and has little risk of bankruptcy at the moment.
VCM has a Altman-Z score of 3.19. This is in the better half of the industry: VCM outperforms 70.00% of its industry peers.
VCM has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as VCM would need 3.57 years to pay back of all of its debts.
VCM has a Debt to FCF ratio (3.57) which is in line with its industry peers.
VCM has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, VCM is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.91
WACC9.35%
2.3 Liquidity
VCM has a Current Ratio of 1.55. This is a normal value and indicates that VCM is financially healthy and should not expect problems in meeting its short term obligations.
VCM has a Current ratio of 1.55. This is comparable to the rest of the industry: VCM outperforms 50.00% of its industry peers.
VCM has a Quick Ratio of 1.55. This is a bad value and indicates that VCM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.39, VCM is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The earnings per share for VCM have decreased strongly by -35.82% in the last year.
VCM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.70%.
The Revenue has been growing by 27.91% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-35.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-266.67%
Revenue 1Y (TTM)15.7%
Revenue growth 3Y32.83%
Revenue growth 5Y27.91%
Sales Q2Q%14.96%
3.2 Future
The Earnings Per Share is expected to grow by 16.05% on average over the next years. This is quite good.
Based on estimates for the next years, VCM will show a quite strong growth in Revenue. The Revenue will grow by 8.54% on average per year.
EPS Next Y-90.15%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.99%
Revenue Next 2Y8.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
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
A Price/Earnings ratio of 23.81 indicates a rather expensive valuation of VCM.
Compared to the rest of the industry, the Price/Earnings ratio of VCM indicates a somewhat cheap valuation: VCM is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. VCM is around the same levels.
A Price/Forward Earnings ratio of 9.27 indicates a reasonable valuation of VCM.
VCM's Price/Forward Earnings ratio is rather cheap when compared to the industry. VCM is cheaper than 100.00% of the companies in the same industry.
VCM is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 9.27 |
4.2 Price Multiples
VCM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VCM is cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VCM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.22 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
A more expensive valuation may be justified as VCM's earnings are expected to grow with 16.05% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.05%
EPS Next 3YN/A
5. Dividend
5.1 Amount
VCM has a Yearly Dividend Yield of 2.47%.
The stock price of VCM dropped by -26.33% 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.
Compared to an average industry Dividend Yield of 5.06, VCM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, VCM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
The dividend of VCM has a limited annual growth rate of 0.05%.
VCM has been paying a dividend for at least 10 years, so it has a reliable track record.
VCM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.05%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
64.33% of the earnings are spent on dividend by VCM. This is not a sustainable payout ratio.
VCM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP64.33%
EPS Next 2Y16.05%
EPS Next 3YN/A
TSX:VCM (5/2/2025, 7:00:00 PM)
10.24
+0.3 (+3.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners15.5%
Inst Owner ChangeN/A
Ins Owners1.62%
Ins Owner ChangeN/A
Market Cap248.93M
Analysts77.5
Price Target19.89 (94.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend0.22
Dividend Growth(5Y)0.05%
DP64.33%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-179.97%
Min EPS beat(2)-298.02%
Max EPS beat(2)-61.92%
EPS beat(4)0
Avg EPS beat(4)-94.12%
Min EPS beat(4)-298.02%
Max EPS beat(4)-2.43%
EPS beat(8)3
Avg EPS beat(8)-12.29%
EPS beat(12)7
Avg EPS beat(12)53.41%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-9.18%
Min Revenue beat(2)-14.45%
Max Revenue beat(2)-3.92%
Revenue beat(4)0
Avg Revenue beat(4)-6.16%
Min Revenue beat(4)-14.45%
Max Revenue beat(4)-0.64%
Revenue beat(8)1
Avg Revenue beat(8)-3.05%
Revenue beat(12)5
Avg Revenue beat(12)1.1%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-25.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-91.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-21.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.81 | ||
| Fwd PE | 9.27 | ||
| P/S | 0.78 | ||
| P/FCF | 16.22 | ||
| P/OCF | 5.28 | ||
| P/B | 1.07 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | 5.15 |
EPS(TTM)0.43
EY4.2%
EPS(NY)1.1
Fwd EY10.78%
FCF(TTM)0.63
FCFY6.17%
OCF(TTM)1.94
OCFY18.93%
SpS13.19
BVpS9.57
TBVpS4.58
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.27% | ||
| ROE | 3.57% | ||
| ROCE | 10.95% | ||
| ROIC | 8.51% | ||
| ROICexc | 8.58% | ||
| ROICexgc | 15.12% | ||
| OM | 8.55% | ||
| PM (TTM) | 2.59% | ||
| GM | 43.13% | ||
| FCFM | 4.78% |
ROA(3y)5.5%
ROA(5y)3.45%
ROE(3y)8.53%
ROE(5y)5.28%
ROIC(3y)8.67%
ROIC(5y)N/A
ROICexc(3y)8.83%
ROICexc(5y)N/A
ROICexgc(3y)14.65%
ROICexgc(5y)N/A
ROCE(3y)11%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.45%
GM growth 5Y-2.68%
F-Score4
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | 135.81% | ||
| Cap/Sales | 9.91% | ||
| Interest Coverage | 3.2 | ||
| Cash Conversion | 92.71% | ||
| Profit Quality | 184.53% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 3.19 |
F-Score4
WACC9.35%
ROIC/WACC0.91
Cap/Depr(3y)132.3%
Cap/Depr(5y)121.12%
Cap/Sales(3y)10.49%
Cap/Sales(5y)12.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-266.67%
EPS Next Y-90.15%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.7%
Revenue growth 3Y32.83%
Revenue growth 5Y27.91%
Sales Q2Q%14.96%
Revenue Next Year1.99%
Revenue Next 2Y8.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y35.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year5.08%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y140.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y464.19%
OCF growth 3Y-48.66%
OCF growth 5Y-25.01%