VECIMA NETWORKS INC (VCM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:VCM - CA92241Y1016 - Common Stock
9.94 CAD
-0.01 (-0.1%)
VCM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 13 industry peers in the Communications Equipment industry. VCM has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
VCM had a positive operating cash flow in the past year.
In multiple years VCM reported negative net income over the last 5 years.
VCM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -5.87%, VCM perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
VCM's Return On Equity of -9.20% is fine compared to the rest of the industry. VCM outperforms 61.54% 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
VCM has a better Gross Margin (38.23%) than 61.54% of its industry peers.
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.
Compared to 1 year ago, VCM has about the same amount of shares outstanding.
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
An Altman-Z score of 2.94 indicates that VCM is not a great score, but indicates only limited risk for bankruptcy at the moment.
VCM has a Altman-Z score of 2.94. 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 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.
With a Debt to FCF ratio value of 28.40, VCM perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that VCM is not too dependend on debt financing.
VCM has a Debt to Equity ratio (0.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 28.4 | ||
| Altman-Z | 2.94 |
ROIC/WACCN/A
WACC9.69%
2.3 Liquidity
A Current Ratio of 1.58 indicates that VCM should not have too much problems paying its short term obligations.
The Current ratio of VCM (1.58) is better than 61.54% of its industry peers.
A Quick Ratio of 0.42 indicates that VCM may have some problems paying its short term obligations.
VCM has a worse Quick ratio (0.42) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for VCM have decreased strongly by -127.71% in the last year.
VCM shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.70%.
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
Based on estimates for the next years, VCM will show a very strong growth in Earnings Per Share. The EPS will grow by 161.79% on average per year.
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
VCM reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 11.38, 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 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VCM is valued a bit cheaper than 69.23% of the companies in the same industry.
VCM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VCM is cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 99.07 | ||
| EV/EBITDA | 12.93 |
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.
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
VCM has a Yearly Dividend Yield of 2.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.06, VCM pays a better dividend. On top of this VCM pays more dividend than 92.31% of the companies listed in the same industry.
VCM's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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 their dividend for at least 10 years, which is a reliable track record.
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
TSX:VCM (12/5/2025, 7:00:00 PM)
9.94
-0.01 (-0.1%)
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 Cap241.64M
Revenue(TTM)275.03M
Net Income(TTM)-19.70M
Analysts80
Price Target16.83 (69.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend0.22
Dividend Growth(5Y)0.04%
DP-27.15%
Div Incr Years0
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.45%
Min EPS beat(2)-152.11%
Max EPS beat(2)155.01%
EPS beat(4)1
Avg EPS beat(4)-95.78%
Min EPS beat(4)-298.02%
Max EPS beat(4)155.01%
EPS beat(8)2
Avg EPS beat(8)-39.26%
EPS beat(12)5
Avg EPS beat(12)-12.72%
EPS beat(16)9
Avg EPS beat(16)63.26%
Revenue beat(2)1
Avg Revenue beat(2)1.18%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)3.91%
Revenue beat(4)1
Avg Revenue beat(4)-6.3%
Min Revenue beat(4)-14.45%
Max Revenue beat(4)3.91%
Revenue beat(8)1
Avg Revenue beat(8)-4.47%
Revenue beat(12)3
Avg Revenue beat(12)-2.72%
Revenue beat(16)6
Avg Revenue beat(16)0.09%
PT rev (1m)3.13%
PT rev (3m)6.45%
EPS NQ rev (1m)344.43%
EPS NQ rev (3m)-8.34%
EPS NY rev (1m)5.88%
EPS NY rev (3m)-47.25%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)-5.73%
Revenue NY rev (3m)-4.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.38 | ||
| P/S | 0.88 | ||
| P/FCF | 99.07 | ||
| P/OCF | 6.54 | ||
| P/B | 1.13 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 12.93 |
EPS(TTM)-0.23
EYN/A
EPS(NY)0.87
Fwd EY8.79%
FCF(TTM)0.1
FCFY1.01%
OCF(TTM)1.52
OCFY15.29%
SpS11.31
BVpS8.81
TBVpS3.81
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.87% | ||
| ROE | -9.2% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 38.23% | ||
| FCFM | 0.89% |
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-Score2
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 28.4 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 132.31% | ||
| Cap/Sales | 12.55% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 176.58% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 2.94 |
F-Score2
WACC9.69%
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)-127.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
EPS Next Y302%
EPS Next 2Y161.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-11.7%
Revenue growth 3Y15.24%
Revenue growth 5Y24.67%
Sales Q2Q%-13.22%
Revenue Next Year3.63%
Revenue Next 2Y9.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-115.86%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year269.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y110.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y697.91%
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 302% 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 -27.15%.