VECIMA NETWORKS INC (VCM.CA) Stock Fundamental Analysis
Canada - TSX:VCM - CA92241Y1016 - Common Stock
10 CAD
0 (0%)
Overall VCM gets a fundamental rating of 4 out of 10. We evaluated VCM against 13 industry peers in the Communications Equipment industry. While VCM seems to be doing ok healthwise, there are quite some concerns on its profitability. VCM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
VCM had negative earnings in the past year.
In the past year VCM had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VCM reported negative net income in multiple years.
VCM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
VCM has a Return On Assets of -5.35%. This is comparable to the rest of the industry: VCM outperforms 53.85% of its industry peers.
With a decent Return On Equity value of -8.32%, VCM is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.35% | ||
| ROE | -8.32% | ||
| ROIC | N/A |
ROA(3y)2.62%
ROA(5y)2.2%
ROE(3y)4.14%
ROE(5y)3.42%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of VCM (38.28%) is better than 61.54% of its industry peers.
In the last couple of years the Gross Margin of VCM has declined.
VCM does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.28% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.55%
GM growth 5Y-6.99%
2. Health
2.1 Basic Checks
VCM does not have a ROIC to compare to the WACC, probably because it is not profitable.
VCM has about the same amout of shares outstanding than it did 1 year ago.
VCM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VCM is higher compared to a year ago.
2.2 Solvency
VCM has an Altman-Z score of 3.05. This indicates that VCM is financially healthy and has little risk of bankruptcy at the moment.
VCM has a Altman-Z score of 3.05. This is in the better half of the industry: VCM outperforms 69.23% of its industry peers.
VCM has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as VCM would need 3.04 years to pay back of all of its debts.
VCM has a better Debt to FCF ratio (3.04) than 76.92% of its industry peers.
VCM has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
VCM's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. VCM outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 3.05 |
ROIC/WACCN/A
WACC9.61%
2.3 Liquidity
VCM has a Current Ratio of 1.53. 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 1.53. This is in the better half of the industry: VCM outperforms 61.54% of its industry peers.
VCM has a Quick Ratio of 1.53. 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 0.38, VCM is not doing good in the industry: 84.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
VCM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -121.95%.
Looking at the last year, VCM shows a decrease in Revenue. The Revenue has decreased by -1.78% in the last year.
VCM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.67% yearly.
EPS 1Y (TTM)-121.95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-114.71%
Revenue 1Y (TTM)-1.78%
Revenue growth 3Y15.24%
Revenue growth 5Y24.67%
Sales Q2Q%-21.35%
3.2 Future
Based on estimates for the next years, VCM will show a very strong growth in Earnings Per Share. The EPS will grow by 153.63% on average per year.
VCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.91% yearly.
EPS Next Y290.78%
EPS Next 2Y153.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.93%
Revenue Next 2Y10.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for VCM. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 29.12 indicates a quite expensive valuation of VCM.
Based on the Price/Forward Earnings ratio, VCM is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VCM to the average of the S&P500 Index (32.73), we can say VCM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 29.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VCM is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VCM is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.87 | ||
| EV/EBITDA | 11.91 |
4.3 Compensation for Growth
VCM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VCM's earnings are expected to grow with 153.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y153.63%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.20%, VCM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.25, VCM pays a better dividend. On top of this VCM pays more dividend than 92.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, VCM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
The dividend of VCM has a limited annual growth rate of 0.04%.
VCM has been paying a dividend for at least 10 years, so it has a reliable track record.
VCM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.04%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
VCM has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of VCM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-30.11%
EPS Next 2Y153.63%
EPS Next 3YN/A
TSX:VCM (11/7/2025, 7:00:00 PM)
10
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners13.12%
Inst Owner ChangeN/A
Ins Owners1.61%
Ins Owner ChangeN/A
Market Cap243.10M
Revenue(TTM)285.86M
Net Income(TTM)-17.76M
Analysts80
Price Target16.32 (63.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend0.22
Dividend Growth(5Y)0.04%
DP-30.11%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-120.05%
Min EPS beat(2)-152.11%
Max EPS beat(2)-88%
EPS beat(4)0
Avg EPS beat(4)-150.01%
Min EPS beat(4)-298.02%
Max EPS beat(4)-61.92%
EPS beat(8)2
Avg EPS beat(8)-54%
EPS beat(12)5
Avg EPS beat(12)-7.95%
EPS beat(16)9
Avg EPS beat(16)78.39%
Revenue beat(2)0
Avg Revenue beat(2)-7.33%
Min Revenue beat(2)-13.09%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-8.25%
Min Revenue beat(4)-14.45%
Max Revenue beat(4)-1.56%
Revenue beat(8)0
Avg Revenue beat(8)-5.02%
Revenue beat(12)3
Avg Revenue beat(12)-1.94%
Revenue beat(16)5
Avg Revenue beat(16)-1%
PT rev (1m)0%
PT rev (3m)3.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-50.18%
EPS NY rev (3m)-68.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 29.12 | ||
| P/S | 0.85 | ||
| P/FCF | 11.87 | ||
| P/OCF | 4.45 | ||
| P/B | 1.14 | ||
| P/tB | 2.56 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)-0.18
EYN/A
EPS(NY)0.34
Fwd EY3.43%
FCF(TTM)0.84
FCFY8.42%
OCF(TTM)2.25
OCFY22.47%
SpS11.76
BVpS8.79
TBVpS3.91
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.35% | ||
| ROE | -8.32% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.28% | ||
| FCFM | 7.16% |
ROA(3y)2.62%
ROA(5y)2.2%
ROE(3y)4.14%
ROE(5y)3.42%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc 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 3Y-7.55%
GM growth 5Y-6.99%
F-Score4
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 3.04 | ||
| Debt/EBITDA | 2.4 | ||
| Cap/Depr | 138.04% | ||
| Cap/Sales | 11.95% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 242.93% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 3.05 |
F-Score4
WACC9.61%
ROIC/WACCN/A
Cap/Depr(3y)134.86%
Cap/Depr(5y)132.21%
Cap/Sales(3y)10.32%
Cap/Sales(5y)11.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-121.95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-114.71%
EPS Next Y290.78%
EPS Next 2Y153.63%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.78%
Revenue growth 3Y15.24%
Revenue growth 5Y24.67%
Sales Q2Q%-21.35%
Revenue Next Year9.93%
Revenue Next 2Y10.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-107.41%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year319.12%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y174.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1913.6%
OCF growth 3Y154.09%
OCF growth 5Y40.92%
VECIMA NETWORKS INC / VCM.CA FAQ
Can you provide the ChartMill fundamental rating for VECIMA NETWORKS INC?
ChartMill assigns a fundamental rating of 4 / 10 to VCM.CA.
What is the valuation status of VECIMA NETWORKS INC (VCM.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to VECIMA NETWORKS INC (VCM.CA). This can be considered as Fairly Valued.
How profitable is VECIMA NETWORKS INC (VCM.CA) stock?
VECIMA NETWORKS INC (VCM.CA) has a profitability rating of 2 / 10.
What is the earnings growth outlook for VECIMA NETWORKS INC?
The Earnings per Share (EPS) of VECIMA NETWORKS INC (VCM.CA) is expected to grow by 290.78% in the next year.
Can you provide the dividend sustainability for VCM stock?
The dividend rating of VECIMA NETWORKS INC (VCM.CA) is 6 / 10 and the dividend payout ratio is -30.11%.