Direct Communication Solutions, Inc. (DCSI) 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

Direct Communication Solutions, Inc.

Acceleware Ltd.

Why is Direct Communication Solutions, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -16.73% and Operating profit at -47.49% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 8 consecutive quarters

INTEREST(HY) At CAD 0.75 MM has Grown at 54.41%
NET SALES(Q) At CAD 2.12 has Fallen at -26.88%
INVENTORY TURNOVER RATIO(HY) Lowest at 5.25%

Risky - No result in last 6 months

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -8.19%, its profits have risen by 45.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.19% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Direct Communication Solutions, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Direct Communication Solutions, Inc.

-100.0%

2.08

81.27%

S&P/TSX 60

29.8%

1.43

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-14.81%

EBIT Growth (5y)

10.64%

EBIT to Interest (avg)

-2.99

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.87

Sales to Capital Employed (avg)

-6.16

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-0.34

EV to EBIT

-11.19

EV to EBITDA

-11.19

EV to Capital Employed

-7.01

EV to Sales

1.25

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Bearish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 0.19 MM

RAW MATERIAL COST(Y)

Fallen by -8.67% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 19.7 times

PRE-TAX PROFIT(Q)

Highest at CAD -0.47 MM

NET PROFIT(Q)

Highest at CAD -0.47 MM

-12What is not working for the Company

INTEREST(9M)

At CAD 2.17 MM has Grown at 17.68%

NET SALES(Q)

Lowest at CAD 1.9 MM

Here's what is working for Direct Communication Solutions, Inc.

Operating Cash Flow

Highest at CAD 0.19 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Pre-Tax Profit

Highest at CAD -0.47 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Pre-Tax Profit

At CAD -0.47 MM has Grown at 63.91%

over average net sales of the previous four periods of CAD -1.31 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD -0.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Net Profit

At CAD -0.47 MM has Grown at 63.91%

over average net sales of the previous four periods of CAD -1.31 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Inventory Turnover Ratio

Highest at 19.7 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -8.67% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Here's what is not working for Direct Communication Solutions, Inc.

Net Sales

At CAD 1.9 MM has Fallen at -37.93%

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

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CAD MM)

Interest

At CAD 2.17 MM has Grown at 17.68%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales

Lowest at CAD 1.9 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)