VECIMA NETWORKS INC (VCM.CA) Stock Fundamental Analysis
TSX:VCM - Toronto Stock Exchange - CA92241Y1016 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to VCM. VCM was compared to 11 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VCM was profitable.
In the past year VCM had a positive cash flow from operations.
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
The Return On Assets of VCM (1.01%) is better than 72.73% of its industry peers.
VCM has a Return On Equity of 1.59%. This is in the better half of the industry: VCM outperforms 72.73% of its industry peers.
VCM has a Return On Invested Capital of 5.74%. This is amongst the best in the industry. VCM outperforms 90.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VCM is in line with the industry average of 7.07%.
| 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 has a Profit Margin of 1.21%. This is in the better half of the industry: VCM outperforms 72.73% of its industry peers.
With an excellent Operating Margin value of 6.35%, VCM belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
VCM's Gross Margin of 43.10% is in line compared to the rest of the industry. VCM outperforms 54.55% of its industry peers.
In the last couple of years the Gross Margin of VCM has declined.
| 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.
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 3.10. This indicates that VCM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.10, VCM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.76, VCM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that VCM is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.26, VCM is doing worse than 63.64% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for VCM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.61
WACC9.43%
2.3 Liquidity
VCM has a Current Ratio of 1.52. This is a normal value and indicates that VCM is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.52, VCM is in the better half of the industry, outperforming 63.64% 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 Quick ratio of 0.37. This is amonst the worse of the industry: VCM underperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The earnings per share for VCM have decreased strongly by -71.23% in the last year.
VCM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.13%.
VCM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.91% yearly.
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
VCM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.05% yearly.
VCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.54% yearly.
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VCM is valuated quite expensively with a Price/Earnings ratio of 49.33.
Based on the Price/Earnings ratio, VCM is valued cheaper than 81.82% of the companies in the same industry.
VCM is valuated expensively when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.38, the valuation of VCM can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VCM indicates a rather cheap valuation: VCM is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of VCM to the average of the S&P500 Index (22.17), we can say VCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.33 | ||
| Fwd PE | 9.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VCM indicates a rather cheap valuation: VCM is cheaper than 90.91% of the companies listed in the same industry.
VCM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VCM is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.48 | ||
| EV/EBITDA | 6.35 |
4.3 Compensation for Growth
VCM's earnings are expected to grow with 16.05% in the coming years. This may justify a more expensive valuation.
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 2.14%.
VCM's Dividend Yield is rather good when compared to the industry average which is at 4.51. VCM pays more dividend than 81.82% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, VCM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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
144.66% of the earnings are spent on dividend by VCM. This is not a sustainable payout ratio.
The dividend of VCM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP144.66%
EPS Next 2Y16.05%
EPS Next 3YN/A
TSX:VCM (6/2/2025, 7:00:00 PM)
10.36
+0.21 (+2.07%)
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 Cap251.85M
Analysts77.5
Price Target19.89 (91.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.03%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-8.24%
Revenue NQ rev (3m)-26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.33 | ||
| Fwd PE | 9.38 | ||
| P/S | 0.83 | ||
| P/FCF | 6.48 | ||
| P/OCF | 3.51 | ||
| P/B | 1.08 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 6.35 |
EPS(TTM)0.21
EY2.03%
EPS(NY)1.1
Fwd EY10.66%
FCF(TTM)1.6
FCFY15.44%
OCF(TTM)2.95
OCFY28.5%
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 | 3.1 |
F-Score5
WACC9.43%
ROIC/WACC0.61
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 Year1.99%
Revenue Next 2Y8.54%
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%