VECIMA NETWORKS INC (VCM.CA) Stock Fundamental Analysis
TSX:VCM - CA92241Y1016 - Common Stock
9.55 CAD
+0.07 (+0.74%)
Overall VCM gets a fundamental rating of 5 out of 10. We evaluated VCM against 12 industry peers in the Communications Equipment industry. VCM has only an average score on both its financial health and profitability. VCM has a correct valuation and a medium growth rate.
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.
VCM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
VCM has a better Return On Assets (1.01%) than 83.33% of its industry peers.
VCM has a better Return On Equity (1.59%) than 83.33% of its industry peers.
VCM has a Return On Invested Capital of 5.74%. This is amongst the best in the industry. VCM outperforms 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VCM 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's Gross Margin of 43.10% is in line compared to the rest of the industry. VCM outperforms 58.33% 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
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
VCM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.01 indicates that VCM is not in any danger for bankruptcy at the moment.
VCM has a better Altman-Z score (3.01) 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.
VCM has a Debt to FCF ratio of 1.76. This is in the better half of the industry: VCM outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that VCM is not too dependend on debt financing.
VCM has a Debt to Equity ratio of 0.26. This is comparable to the rest of the industry: VCM outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.56
WACC10.29%
2.3 Liquidity
A Current Ratio of 1.52 indicates that VCM should not have too much problems paying its short term obligations.
VCM's Current ratio of 1.52 is fine compared to the rest of the industry. VCM outperforms 66.67% of its industry peers.
VCM has a Quick Ratio of 1.52. This is a bad value and indicates that VCM is not financially healthy enough and could expect problems in meeting its short term obligations.
VCM's Quick ratio of 0.37 is on the low side compared to the rest of the industry. VCM is outperformed by 75.00% 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.
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 decrease in Earnings Per Share. The EPS will decrease by -8.31% 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-107.39%
EPS Next 2Y-8.31%
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
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
Based on the Price/Earnings ratio of 45.48, the valuation of VCM can be described as expensive.
Based on the Price/Earnings ratio, VCM is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VCM to the average of the S&P500 Index (27.02), we can say VCM is valued expensively.
Based on the Price/Forward Earnings ratio of 13.85, the valuation of VCM can be described as correct.
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 (22.66), we can say VCM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.48 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VCM is valued cheaper than 91.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VCM is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.97 | ||
| EV/EBITDA | 5.89 |
4.3 Compensation for Growth
The decent profitability rating of VCM may justify a higher PE ratio.
VCM's earnings are expected to decrease with -8.31% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.32%, VCM has a reasonable but not impressive dividend return.
VCM's Dividend Yield is rather good when compared to the industry average which is at 3.36. VCM pays more dividend than 91.67% of the companies in the same industry.
VCM's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
VCM's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP144.66%
EPS Next 2Y-8.31%
EPS Next 3YN/A
TSX:VCM (9/8/2025, 7:00:00 PM)
9.55
+0.07 (+0.74%)
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 Cap232.16M
Analysts80
Price Target15.81 (65.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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)-64.81%
EPS NY rev (1m)-175%
EPS NY rev (3m)-175%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.48 | ||
| Fwd PE | 13.85 | ||
| P/S | 0.76 | ||
| P/FCF | 5.97 | ||
| P/OCF | 3.23 | ||
| P/B | 1 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 5.89 |
EPS(TTM)0.21
EY2.2%
EPS(NY)0.69
Fwd EY7.22%
FCF(TTM)1.6
FCFY16.75%
OCF(TTM)2.95
OCFY30.92%
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 | 3.01 |
F-Score5
WACC10.29%
ROIC/WACC0.56
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-107.39%
EPS Next 2Y-8.31%
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%