VECIMA NETWORKS INC (VCM.CA) Stock Fundamental Analysis
TSX:VCM - Toronto Stock Exchange - CA92241Y1016 - Common Stock - Currency: CAD
Overall VCM gets a fundamental rating of 6 out of 10. We evaluated VCM against 11 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
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
VCM's Return On Assets of 1.01% is amongst the best of the industry. VCM outperforms 81.82% of its industry peers.
VCM has a better Return On Equity (1.59%) than 81.82% of its industry peers.
VCM has a better Return On Invested Capital (5.74%) than 90.91% of its industry peers.
VCM had an Average Return On Invested Capital over the past 3 years of 8.67%. This is in line with the industry average of 9.44%.
| 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 amongst the best in the industry. VCM outperforms 81.82% of its industry peers.
Looking at the Operating Margin, with a value of 6.35%, VCM belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
The Gross Margin of VCM (43.10%) is comparable to the rest of the industry.
VCM's Gross Margin has declined in the last couple of years.
| 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
VCM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, VCM has about the same amount of shares outstanding.
VCM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VCM is higher compared to a year ago.
2.2 Solvency
VCM has an Altman-Z score of 3.04. This indicates that VCM is financially healthy and has little risk of bankruptcy at the moment.
VCM's Altman-Z score of 3.04 is fine compared to the rest of the industry. VCM outperforms 72.73% 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.
With a decent Debt to FCF ratio value of 1.76, VCM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
VCM has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.26, VCM perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.59
WACC9.77%
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 63.64% 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.
With a Quick ratio value of 0.37, VCM is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
| 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.
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.
Based on estimates for the next years, VCM will show a quite strong growth in Revenue. The Revenue will grow by 8.54% on average per year.
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
The Price/Earnings ratio is 46.86, which means the current valuation is very expensive for VCM.
Based on the Price/Earnings ratio, VCM is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VCM to the average of the S&P500 Index (26.65), we can say VCM is valued expensively.
VCM is valuated reasonably with a Price/Forward Earnings ratio of 8.91.
VCM's Price/Forward Earnings ratio is rather cheap when compared to the industry. VCM is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VCM to the average of the S&P500 Index (21.27), we can say VCM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.86 | ||
| Fwd PE | 8.91 |
4.2 Price Multiples
VCM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VCM is cheaper than 90.91% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VCM indicates a rather cheap valuation: VCM is cheaper than 90.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.15 | ||
| EV/EBITDA | 6.05 |
4.3 Compensation for Growth
The decent profitability rating of VCM may justify a higher PE ratio.
A more expensive valuation may be justified as VCM's earnings are expected to grow with 16.05% in the coming years.
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 2.22%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.58, VCM pays a better dividend. On top of this VCM pays more dividend than 81.82% of the companies listed in the same industry.
VCM's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
The dividend of VCM has a limited annual growth rate of 0.05%.
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)0.05%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
VCM pays out 144.66% of its income as dividend. 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 (6/20/2025, 7:00:00 PM)
9.84
-0.06 (-0.61%)
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 Cap239.21M
Analysts80
Price Target15.81 (60.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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)-20.51%
PT rev (3m)-20.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.86 | ||
| Fwd PE | 8.91 | ||
| P/S | 0.79 | ||
| P/FCF | 6.15 | ||
| P/OCF | 3.33 | ||
| P/B | 1.03 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 6.05 |
EPS(TTM)0.21
EY2.13%
EPS(NY)1.1
Fwd EY11.22%
FCF(TTM)1.6
FCFY16.26%
OCF(TTM)2.95
OCFY30.01%
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 | 3.04 |
F-Score5
WACC9.77%
ROIC/WACC0.59
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%