VECIMA NETWORKS INC (VCM.CA) Stock Fundamental Analysis
Canada - TSX:VCM - CA92241Y1016 - Common Stock
10.25 CAD
+0.11 (+1.08%)
Taking everything into account, VCM scores 4 out of 10 in our fundamental rating. VCM was compared to 12 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VCM has reported negative net income.
VCM had a positive operating cash flow in the past year.
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 50.00% of its industry peers.
With a Return On Equity value of -8.32%, VCM perfoms like the industry average, outperforming 58.33% 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 comparable to the rest of the industry.
VCM's Gross Margin has declined in the last couple of years.
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.
Compared to 1 year ago, VCM has about the same amount of shares outstanding.
The number of shares outstanding for VCM has been increased compared to 5 years ago.
Compared to 1 year ago, VCM has a worse debt to assets ratio.
2.2 Solvency
VCM has an Altman-Z score of 3.08. This indicates that VCM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VCM (3.08) is better than 66.67% 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 66.67% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that VCM is not too dependend on debt financing.
VCM has a Debt to Equity ratio of 0.25. This is comparable to the rest of the industry: VCM outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 3.08 |
ROIC/WACCN/A
WACC10.14%
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 better Current ratio (1.53) than 66.67% 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.
VCM's Quick ratio of 0.38 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 | 1.53 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
The earnings per share for VCM have decreased strongly by -121.95% in the last year.
The Revenue has decreased by -1.78% in the past 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
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
Based on estimates for the next years, VCM will show a quite strong growth in Revenue. The Revenue will grow by 10.91% on average per year.
EPS Next Y482.96%
EPS Next 2YN/A
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
No EPS estimates are available, so we could not analyze the future EPS growth and 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.
The Price/Forward Earnings ratio is 14.87, which indicates a correct valuation of VCM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VCM indicates a rather cheap valuation: VCM is cheaper than 91.67% of the companies listed in the same industry.
VCM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VCM is valued a bit cheaper than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VCM is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.17 | ||
| EV/EBITDA | 12.18 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, VCM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.38, VCM pays a better dividend. On top of this VCM pays more dividend than 91.67% of the companies listed in the same industry.
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 | 2.17% |
5.2 History
The dividend of VCM has a limited annual growth rate of 0.04%.
VCM has paid a dividend for at least 10 years, which is 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 2YN/A
EPS Next 3YN/A
TSX:VCM (10/3/2025, 7:00:00 PM)
10.25
+0.11 (+1.08%)
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 Cap249.18M
Analysts80
Price Target16.32 (59.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)3.23%
PT rev (3m)3.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-37.58%
Revenue NQ rev (1m)-1.19%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)-8.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 14.87 | ||
| P/S | 0.87 | ||
| P/FCF | 12.17 | ||
| P/OCF | 4.56 | ||
| P/B | 1.17 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 12.18 |
EPS(TTM)-0.18
EYN/A
EPS(NY)0.69
Fwd EY6.73%
FCF(TTM)0.84
FCFY8.22%
OCF(TTM)2.25
OCFY21.92%
SpS11.76
BVpS8.79
TBVpS3.91
PEG (NY)N/A
PEG (5Y)N/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
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 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 | 3.08 |
F-Score4
WACC10.14%
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 Y482.96%
EPS Next 2YN/A
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%