Why is Direct Communication Solutions, Inc. ?
1
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
2
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%
3
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%
4
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
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
21.87%
1.43
14.72%
Quality key factors
Factor
Value
Sales Growth (5y)
-8.43%
EBIT Growth (5y)
-14.97%
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)
-6.53
Tax Ratio
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
-0.24
EV to EBIT
-5.04
EV to EBITDA
-5.58
EV to Capital Employed
-9.45
EV to Sales
1.09
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
Negative BV
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 0.24 MM
RAW MATERIAL COST(Y)
Fallen by -11.04% (YoY
NET SALES(9M)
Higher at CAD 10.1 MM
PRE-TAX PROFIT(Q)
Highest at CAD -0.8 MM
NET PROFIT(Q)
Highest at CAD -0.8 MM
-10What is not working for the Company
INTEREST(HY)
At CAD 1.85 MM has Grown at 147.25%
NET PROFIT(9M)
At CAD -3.57 MM has Grown at -32.36%
Here's what is working for Direct Communication Solutions, Inc.
Operating Cash Flow
Highest at CAD 0.24 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Net Sales
At CAD 10.1 MM has Grown at 51.97%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Pre-Tax Profit
Highest at CAD -0.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Net Profit
Highest at CAD -0.8 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CAD MM)
Net Sales
Higher at CAD 10.1 MM
than preceding 12 month period ended Sep 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Sales (CAD MM)
Raw Material Cost
Fallen by -11.04% (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.
Interest
At CAD 1.85 MM has Grown at 147.25%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)






