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 12 industry peers in the Communications Equipment industry. Both the profitability and the financial health of VCM get a neutral evaluation. Nothing too spectacular is happening here. VCM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
VCM had positive earnings in the past year.
VCM had a positive operating cash flow in the past year.
Of the past 5 years VCM 4 years were profitable.
Of the past 5 years VCM 4 years had a positive operating cash flow.
1.2 Ratios
VCM has a Return On Assets of 1.01%. This is amongst the best in the industry. VCM outperforms 83.33% of its industry peers.
VCM has a Return On Equity of 1.59%. This is amongst the best in the industry. VCM outperforms 83.33% of its industry peers.
VCM has a better Return On Invested Capital (5.74%) than 91.67% of its industry peers.
VCM had an Average Return On Invested Capital over the past 3 years of 8.67%. This is in line with the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 1.59% | ||
| ROIC | 5.74% |
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 1.21% is amongst the best of the industry. VCM outperforms 83.33% of its industry peers.
The Operating Margin of VCM (6.35%) is better than 83.33% of its industry peers.
VCM has a Gross Margin (43.10%) which 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 | 6.35% | ||
| PM (TTM) | 1.21% | ||
| GM | 43.1% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VCM is destroying value.
The number of shares outstanding for VCM remains at a similar level compared to 1 year ago.
The number of shares outstanding for VCM has been increased compared to 5 years ago.
The debt/assets ratio for VCM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.11 indicates that VCM is not in any danger for bankruptcy at the moment.
The Altman-Z score of VCM (3.11) is better than 66.67% of its industry peers.
The Debt to FCF ratio of VCM is 1.76, which is an excellent value as it means it would take VCM, only 1.76 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VCM (1.76) is better than 66.67% of its industry peers.
VCM has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.26, VCM perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.57
WACC10.13%
2.3 Liquidity
A Current Ratio of 1.52 indicates that VCM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.52, VCM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 0.37 indicates that VCM may have some problems paying its short term obligations.
VCM has a worse Quick ratio (0.37) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
VCM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -71.23%.
The Revenue has grown by 9.13% in the past year. This is quite good.
Measured over the past years, VCM shows a very strong growth in Revenue. The Revenue has been growing by 27.91% on average per year.
EPS 1Y (TTM)-71.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-91.67%
Revenue 1Y (TTM)9.13%
Revenue growth 3Y32.83%
Revenue growth 5Y27.91%
Sales Q2Q%-20.16%
3.2 Future
Based on estimates for the next years, VCM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.05% on average per year.
Based on estimates for the next years, VCM will show a small growth in Revenue. The Revenue will grow by 3.14% on average per year.
EPS Next Y-90.15%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.42%
Revenue Next 2Y3.14%
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
With a Price/Earnings ratio of 49.52, VCM can be considered very expensive at the moment.
83.33% of the companies in the same industry are more expensive than VCM, based on the Price/Earnings ratio.
VCM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.87.
A Price/Forward Earnings ratio of 9.42 indicates a reasonable valuation of VCM.
Based on the Price/Forward Earnings ratio, VCM is valued cheaper than 100.00% of the companies in the same industry.
VCM is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.52 | ||
| Fwd PE | 9.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VCM is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
91.67% of the companies in the same industry are more expensive than VCM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.5 | ||
| EV/EBITDA | 6.37 |
4.3 Compensation for Growth
The decent profitability rating of VCM may justify a higher PE ratio.
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 2.13%.
Compared to an average industry Dividend Yield of 4.75, VCM pays a better dividend. On top of this VCM pays more dividend than 83.33% of the companies listed in the same industry.
VCM's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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
VCM pays out 144.66% of its income as dividend. This is not a sustainable payout ratio.
VCM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP144.66%
EPS Next 2Y16.05%
EPS Next 3YN/A
TSX:VCM (8/15/2025, 7:00:00 PM)
10.4
+0.1 (+0.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners12.8%
Inst Owner ChangeN/A
Ins Owners1.61%
Ins Owner ChangeN/A
Market Cap252.82M
Analysts80
Price Target15.81 (52.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend0.22
Dividend Growth(5Y)0.05%
DP144.66%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-193.01%
Min EPS beat(2)-298.02%
Max EPS beat(2)-88%
EPS beat(4)0
Avg EPS beat(4)-112.59%
Min EPS beat(4)-298.02%
Max EPS beat(4)-2.43%
EPS beat(8)3
Avg EPS beat(8)-18.48%
EPS beat(12)6
Avg EPS beat(12)8.43%
EPS beat(16)10
Avg EPS beat(16)106.52%
Revenue beat(2)0
Avg Revenue beat(2)-13.77%
Min Revenue beat(2)-14.45%
Max Revenue beat(2)-13.09%
Revenue beat(4)0
Avg Revenue beat(4)-9.27%
Min Revenue beat(4)-14.45%
Max Revenue beat(4)-3.92%
Revenue beat(8)1
Avg Revenue beat(8)-4.61%
Revenue beat(12)4
Avg Revenue beat(12)-0.95%
Revenue beat(16)6
Avg Revenue beat(16)-0.74%
PT rev (1m)0%
PT rev (3m)-20.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-64.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.24%
Revenue NY rev (1m)-4.32%
Revenue NY rev (3m)-4.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.52 | ||
| Fwd PE | 9.42 | ||
| P/S | 0.83 | ||
| P/FCF | 6.5 | ||
| P/OCF | 3.52 | ||
| P/B | 1.09 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 6.37 |
EPS(TTM)0.21
EY2.02%
EPS(NY)1.1
Fwd EY10.62%
FCF(TTM)1.6
FCFY15.38%
OCF(TTM)2.95
OCFY28.4%
SpS12.53
BVpS9.55
TBVpS4.47
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.01% | ||
| ROE | 1.59% | ||
| ROCE | 7.75% | ||
| ROIC | 5.74% | ||
| ROICexc | 5.77% | ||
| ROICexgc | 9.96% | ||
| OM | 6.35% | ||
| PM (TTM) | 1.21% | ||
| GM | 43.1% | ||
| FCFM | 12.77% |
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-Score5
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.76 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 138.92% | ||
| Cap/Sales | 10.8% | ||
| Interest Coverage | 2.04 | ||
| Cash Conversion | 166.81% | ||
| Profit Quality | 1051.28% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 3.11 |
F-Score5
WACC10.13%
ROIC/WACC0.57
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)-71.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-91.67%
EPS Next Y-90.15%
EPS Next 2Y16.05%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.13%
Revenue growth 3Y32.83%
Revenue growth 5Y27.91%
Sales Q2Q%-20.16%
Revenue Next Year-2.42%
Revenue Next 2Y3.14%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-24.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-6.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y227.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1475.29%
OCF growth 3Y-48.66%
OCF growth 5Y-25.01%