Vecima Networks, Inc. (VCM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Evertz Technologies Ltd.

D-Box Technologies, Inc.

Jemtec, Inc.

Sangoma Technologies Corp.

Blackline Safety Corp.

Vecima Networks, Inc.

Gatekeeper Systems, Inc.

Baylin Technologies, Inc.

NuRAN Wireless, Inc.

Why is Vecima Networks, Inc. ?

Poor Management Efficiency with a low ROCE of 6.58%

The company has been able to generate a Return on Capital Employed (avg) of 6.58% signifying low profitability per unit of total capital (equity and debt)

With a fall in Operating Profit of -25.64%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 6 consecutive quarters
INTEREST(HY) At CAD 4.39 MM has Grown at 35.43%
NET PROFIT(Q) At CAD 1.19 MM has Fallen at -61.98%
ROCE(HY) Lowest at 1.61%

With ROE of 2.96%, it has a expensive valuation with a 1.09 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -48.84%, its profits have fallen by -63.2%

Underperformed the market in the last 1 year

Even though the market (S&P/TSX 60) has generated returns of 22.54% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -48.84% returns

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 Vecima Networks, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Vecima Networks, Inc.

-100.0%

1.15

41.13%

S&P/TSX 60

19.1%

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)

24.47%

EBIT Growth (5y)

-205.39%

EBIT to Interest (avg)

5.97

Debt to EBITDA (avg)

0.80

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

1.06

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

6.58%

ROE (avg)

5.36%

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

1.20

EV to EBIT

-129.08

EV to EBITDA

13.89

EV to Capital Employed

1.16

EV to Sales

1.09

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.90%

ROE (Latest)

-3.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 71.8 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 113.17%

-27What is not working for the Company

INTEREST(HY)

At CAD 4.39 MM has Grown at 35.43%

NET PROFIT(Q)

At CAD 1.19 MM has Fallen at -61.98%

ROCE(HY)

Lowest at 1.61%

PRE-TAX PROFIT(Q)

At CAD 1.54 MM has Fallen at -45.76%

RAW MATERIAL COST(Y)

Grown by 5.05% (YoY

CASH AND EQV(HY)

Lowest at CAD 3.84 MM

NET SALES(Q)

Lowest at CAD 63.98 MM

Here's what is working for Vecima Networks, Inc.

Operating Cash Flow

Highest at CAD 71.8 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Dividend Payout Ratio

Highest at 113.17%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at CAD 6.24 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Vecima Networks, Inc.

Net Profit

At CAD 1.19 MM has Fallen at -61.98%

over average net sales of the previous four periods of CAD 3.14 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 4.39 MM has Grown at 35.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales

At CAD 63.98 MM has Fallen at -20.21%

over average net sales of the previous four periods of CAD 80.19 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Pre-Tax Profit

At CAD 1.54 MM has Fallen at -45.76%

over average net sales of the previous four periods of CAD 2.84 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Sales

Lowest at CAD 63.98 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Cash and Eqv

Lowest at CAD 3.84 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 5.05% (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