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DCM

DATA Communications ManagementTSX:DCM Stock Report

Market Cap

CA$50.2m

7D

2.7%

1Y

54.1%

Updated

07 Dec, 2021

Data

Company Financials +
DCM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends0/6

DCM Stock Overview

DATA Communications Management Corp. provides a suite of on and offline communication solutions to business clients.

DATA Communications Management Competitors

CGI

TSX:GIB.A

CA$26.6b

Transcontinental

TSX:TCL.A

CA$1.6b

R. R. Donnelley & Sons

NYSE:RRD

US$782.3m

Price History & Performance

Summary of all time highs, changes and price drops for DATA Communications Management
Historical stock prices
Current Share PriceCA$1.14
52 Week HighCA$1.51
52 Week LowCA$0.50
Beta4.36
1 Month Change-8.80%
3 Month Change12.87%
1 Year Change54.05%
3 Year Change0.89%
5 Year Change-48.42%
Change since IPO-99.89%

Recent News & Updates

Nov 07
Is DATA Communications Management (TSE:DCM) Using Too Much Debt?

Is DATA Communications Management (TSE:DCM) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

DCMCA Commercial ServicesCA Market
7D2.7%-4.2%-2.1%
1Y54.1%20.7%18.4%

Return vs Industry: DCM exceeded the Canadian Commercial Services industry which returned 20.7% over the past year.

Return vs Market: DCM exceeded the Canadian Market which returned 18.4% over the past year.

Price Volatility

Is DCM's price volatile compared to industry and market?
DCM volatility
DCM Average Weekly Movement9.3%
Commercial Services Industry Average Movement5.9%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market3.6%

Stable Share Price: DCM is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: DCM's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1959950Richard Kellamhttps://www.datacm.com

DATA Communications Management Corp. provides a suite of on and offline communication solutions to business clients. Its solutions include multi media campaign management, location-specific marketing, 1:1 marketing, custom loyalty programs execution, and brand management, as well as commercial printing services. The company also offers warehousing and freight services; and marketing solutions, which include business and brand strategy, consumer insights, strategic marketing, and design services.

DATA Communications Management Fundamentals Summary

How do DATA Communications Management's earnings and revenue compare to its market cap?
DCM fundamental statistics
Market CapCA$50.23m
Earnings (TTM)CA$5.00m
Revenue (TTM)CA$235.05m

10.1x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DCM income statement (TTM)
RevenueCA$235.05m
Cost of RevenueCA$168.22m
Gross ProfitCA$66.83m
ExpensesCA$61.83m
EarningsCA$5.00m

Valuation

Is DATA Communications Management undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DCM (CA$1.14) is trading below our estimate of fair value (CA$14.35)

Significantly Below Fair Value: DCM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DCM is good value based on its PE Ratio (10.1x) compared to the Canadian Commercial Services industry average (33.1x).

PE vs Market: DCM is good value based on its PE Ratio (10.1x) compared to the Canadian market (12x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DCM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DCM is overvalued based on its PB Ratio (3.5x) compared to the CA Commercial Services industry average (2.4x).


Future Growth

How is DATA Communications Management forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if DCM's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if DCM's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DCM's revenue (3.1% per year) is forecast to grow slower than the Canadian market (5.3% per year).

High Growth Revenue: DCM's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DCM's Return on Equity is forecast to be high in 3 years time


Past Performance

How has DATA Communications Management performed over the past 5 years?

49.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DCM has high quality earnings.

Growing Profit Margin: DCM's current net profit margins (2.1%) are higher than last year (1.7%).


Past Earnings Growth Analysis

Earnings Trend: DCM has become profitable over the past 5 years, growing earnings by 49.7% per year.

Accelerating Growth: DCM's earnings growth over the past year (8.9%) is below its 5-year average (49.7% per year).

Earnings vs Industry: DCM earnings growth over the past year (8.9%) exceeded the Commercial Services industry 1.7%.


Return on Equity

High ROE: Whilst DCM's Return on Equity (35.31%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is DATA Communications Management's financial position?


Financial Position Analysis

Short Term Liabilities: DCM's short term assets (CA$67.1M) exceed its short term liabilities (CA$56.9M).

Long Term Liabilities: DCM's short term assets (CA$67.1M) do not cover its long term liabilities (CA$75.5M).


Debt to Equity History and Analysis

Debt Level: DCM's net debt to equity ratio (261.5%) is considered high.

Reducing Debt: DCM's debt to equity ratio has increased from 232.8% to 262.7% over the past 5 years.

Debt Coverage: DCM's debt is well covered by operating cash flow (99.4%).

Interest Coverage: DCM's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Dividend

What is DATA Communications Management current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DCM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DCM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DCM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DCM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: DCM is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DCM's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Richard Kellam (55 yo)

0.75

Tenure

Mr. Richard Clarence Kellam serves as President and Chief Executive Officer at DATA Communications Management Corp. since March 8, 2021 and has been its Director since March 2021. Mr. Kellam served as the...


Leadership Team

Experienced Management: DCM's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: DCM's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DCM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

DATA Communications Management Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: DATA Communications Management Corp.
  • Ticker: DCM
  • Exchange: TSX
  • Founded: 1959
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: CA$50.232m
  • Shares outstanding: 44.06m
  • Website: https://www.datacm.com

Number of Employees


Location

  • DATA Communications Management Corp.
  • 9195 Torbram Road
  • Brampton
  • Ontario
  • L6S 6H2
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/07 00:29
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.