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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Vecima Networks, Inc.

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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.

21.4%

1.15

41.13%

S&P/TSX 60

23.72%

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)

20.46%

EBIT Growth (5y)

10.95%

EBIT to Interest (avg)

5.97

Debt to EBITDA (avg)

0.80

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

1.02

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

1.51

EV to EBIT

-243.69

EV to EBITDA

15.06

EV to Capital Employed

1.39

EV to Sales

1.38

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.57%

ROE (Latest)

-2.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

14What is working for the Company

NET PROFIT(Q)

At CAD 0.13 MM has Grown at 105.37%

DIVIDEND PAYOUT RATIO(Y)

Highest at 1,195.65%

RAW MATERIAL COST(Y)

Fallen by -24.75% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.59 times

DEBTORS TURNOVER RATIO(HY)

Highest at 8.21 times

NET SALES(Q)

Highest at CAD 73.72 MM

OPERATING PROFIT(Q)

Highest at CAD 10.47 MM

PRE-TAX PROFIT(Q)

At CAD -0.21 MM has Grown at 95.28%

-5What is not working for the Company

NET PROFIT(9M)

At CAD -5.96 MM has Grown at -204.9%

DEBT-EQUITY RATIO (HY)

Highest at 31.55 %

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

Net Profit

At CAD 0.13 MM has Grown at 105.37%

over average net sales of the previous four periods of CAD -2.46 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Net Sales

Highest at CAD 73.72 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 10.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Pre-Tax Profit

At CAD -0.21 MM has Grown at 95.28%

over average net sales of the previous four periods of CAD -4.41 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Inventory Turnover Ratio

Highest at 1.59 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 8.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 1,195.65%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -24.75% (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

Depreciation

Highest at CAD 7.16 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.

Debt-Equity Ratio

Highest at 31.55 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio