VECIMA NETWORKS INC (VCM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:VCM - CA92241Y1016 - Common Stock
9.99 CAD
+0.15 (+1.52%)
Overall VCM gets a fundamental rating of 4 out of 10. We evaluated VCM against 11 industry peers in the Communications Equipment industry. VCM may be in some trouble as it scores bad on both profitability and health. VCM is not valued too expensively and it also shows a decent growth rate.
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.
- Of the past 5 years VCM 4 years had a positive operating cash flow.
1.2 Ratios
- VCM's Return On Assets of -5.87% is in line compared to the rest of the industry. VCM outperforms 54.55% of its industry peers.
- VCM has a Return On Equity of -9.20%. This is comparable to the rest of the industry: VCM outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.87% | ||
| ROE | -9.2% | ||
| 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
- With a decent Gross Margin value of 38.23%, VCM is doing good in the industry, outperforming 63.64% of the companies in the same 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 | 38.23% |
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.
- VCM has a worse debt/assets ratio than last year.
2.2 Solvency
- VCM has an Altman-Z score of 2.94. This is not the best score and indicates that VCM is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.94, VCM is in line with its industry, outperforming 54.55% of the companies in the same industry.
- VCM has a debt to FCF ratio of 28.40. This is a negative value and a sign of low solvency as VCM would need 28.40 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 28.40, VCM is in line with its industry, outperforming 54.55% of the companies in the same industry.
- VCM has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
- VCM has a Debt to Equity ratio of 0.27. This is in the lower half of the industry: VCM underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 28.4 | ||
| Altman-Z | 2.94 |
ROIC/WACCN/A
WACC10.4%
2.3 Liquidity
- A Current Ratio of 1.58 indicates that VCM should not have too much problems paying its short term obligations.
- VCM's Current ratio of 1.58 is in line compared to the rest of the industry. VCM outperforms 54.55% of its industry peers.
- A Quick Ratio of 0.42 indicates that VCM may have some problems paying its short term obligations.
- The Quick ratio of VCM (0.42) is worse than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
- VCM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -127.71%.
- Looking at the last year, VCM shows a very negative growth in Revenue. The Revenue has decreased by -11.70% 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)-127.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
Revenue 1Y (TTM)-11.7%
Revenue growth 3Y15.24%
Revenue growth 5Y24.67%
Sales Q2Q%-13.22%
3.2 Future
- The Earnings Per Share is expected to grow by 161.79% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 9.95% on average over the next years. This is quite good.
EPS Next Y302%
EPS Next 2Y161.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.63%
Revenue Next 2Y9.95%
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
- The Price/Earnings Ratio is negative for VCM. In the last year negative earnings were reported.
- Based on the Price/Forward Earnings ratio of 11.43, the valuation of VCM can be described as 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.
- VCM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.43 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VCM indicates a somewhat cheap valuation: VCM is cheaper than 72.73% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of VCM indicates a somewhat cheap valuation: VCM is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 99.57 | ||
| EV/EBITDA | 12.99 |
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.
- A more expensive valuation may be justified as VCM's earnings are expected to grow with 161.79% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y161.79%
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.
- VCM's Dividend Yield is rather good when compared to the industry average which is at 1.20. VCM pays more dividend than 81.82% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, VCM pays a bit more dividend than the S&P500 average.
| 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 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
- The earnings of VCM are negative and hence is the payout ratio. VCM will probably not be able to sustain this dividend level.
- VCM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-27.15%
EPS Next 2Y161.79%
EPS Next 3YN/A
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 for VCM stock?
ChartMill assigns a valuation rating of 6 / 10 to VECIMA NETWORKS INC (VCM.CA). This can be considered as Fairly Valued.
What is the profitability of VCM stock?
VECIMA NETWORKS INC (VCM.CA) has a profitability rating of 2 / 10.
What is the financial health of VECIMA NETWORKS INC (VCM.CA) stock?
The financial health rating of VECIMA NETWORKS INC (VCM.CA) is 3 / 10.