Data Communications Management Corp. (DCM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Yellow Pages Ltd.

Glacier Media, Inc.

Data Communications Management Corp.

BlueRush, Inc.

Illumin Holdings, Inc.

Gamelancer Media Corp.

UpSnap, Inc.

iSign Media Solutions, Inc.

Why is Data Communications Management Corp. ?

High Management Efficiency with a high ROCE of 34.06%

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 10.87% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate 37.38%

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at CAD 12.76 MM

With ROE of 34.19%, it has a expensive valuation with a 2.26 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -49.82%, its profits have fallen by -31.5%

Majority shareholders : FIIs

Below par performance in long term as well as near term

Along with generating -49.82% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Data Communications Management Corp. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Data Communications Management Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Data Communications Management Corp.

-11.49%

2.22

58.27%

S&P/TSX 60

26.52%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.67%

EBIT Growth (5y)

17.31%

EBIT to Interest (avg)

2.83

Debt to EBITDA (avg)

1.37

Net Debt to Equity (avg)

3.15

Sales to Capital Employed (avg)

3.35

Tax Ratio

26.92%

Dividend Payout Ratio

59.67%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

34.06%

ROE (avg)

71.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.28

EV to EBIT

5.35

EV to EBITDA

2.86

EV to Capital Employed

1.38

EV to Sales

0.38

PEG Ratio

Dividend Yield

2.58%

ROCE (Latest)

25.86%

ROE (Latest)

27.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

ROCE(HY)

Highest at 26.87%

DIVIDEND PAYOUT RATIO(Y)

Highest at 130.21%

DIVIDEND PER SHARE(HY)

Highest at CAD 4.64

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 19.64 MM

RAW MATERIAL COST(Y)

Grown by 9.61% (YoY

NET SALES(Q)

Lowest at CAD 105.37 MM

OPERATING PROFIT(Q)

Lowest at CAD 12.3 MM

PRE-TAX PROFIT(Q)

Lowest at CAD 0.28 MM

NET PROFIT(Q)

Lowest at CAD 0.2 MM

Here's what is working for Data Communications Management Corp.

Dividend per share

Highest at CAD 4.64

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 130.21%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Data Communications Management Corp.

Pre-Tax Profit

At CAD 0.28 MM has Fallen at -93.88%

over average net sales of the previous four periods of CAD 4.51 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 0.2 MM has Fallen at -93.33%

over average net sales of the previous four periods of CAD 3.06 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 19.64 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Net Sales

Lowest at CAD 105.37 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 12.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Pre-Tax Profit

Lowest at CAD 0.28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 0.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Raw Material Cost

Grown by 9.61% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales