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Vecima Networks

TSX:VCM
Snowflake Description

Flawless balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VCM
TSX
CA$207M
Market Cap
  1. Home
  2. CA
  3. Tech
Company description

Vecima Networks Inc. provides technology solutions that empower network service providers to connect people and enterprises to information and entertainment worldwide. The last earnings update was 78 days ago. More info.


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VCM Share Price and Events
7 Day Returns
-0.2%
TSX:VCM
2.2%
CA Communications
0.8%
CA Market
1 Year Returns
5.1%
TSX:VCM
-8.9%
CA Communications
4.2%
CA Market
VCM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vecima Networks (VCM) -0.2% -3.6% 7.6% 5.1% -21.5% 51.6%
CA Communications 2.2% 4.8% 5.6% -8.9% -0.8% -6.1%
CA Market 0.8% 3.3% 8.7% 4.2% 16% 7.3%
1 Year Return vs Industry and Market
  • VCM outperformed the Communications industry which returned -8.9% over the past year.
Price Volatility
VCM
Industry
5yr Volatility vs Market
Related Companies

VCM Value

 Is Vecima Networks undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Vecima Networks to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vecima Networks.

TSX:VCM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:VCM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.17
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.166 (1 + (1- 26.5%) (1.01%))
1.117
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.117 * 5.96%)
8.6%

Discounted Cash Flow Calculation for TSX:VCM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Vecima Networks is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:VCM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.6%)
2019 2.60 Analyst x1 2.39
2020 0.20 Analyst x1 0.17
2021 0.09 Est @ -54.09% 0.07
2022 0.06 Est @ -37.28% 0.04
2023 0.04 Est @ -25.51% 0.03
2024 0.04 Est @ -17.27% 0.02
2025 0.03 Est @ -11.51% 0.02
2026 0.03 Est @ -7.47% 0.02
2027 0.03 Est @ -4.65% 0.01
2028 0.03 Est @ -2.67% 0.01
Present value of next 10 years cash flows CA$2.78
TSX:VCM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$0.03 × (1 + 1.95%) ÷ (8.6% – 1.95%)
CA$0.41
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$0.41 ÷ (1 + 8.6%)10
CA$0.18
TSX:VCM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$2.78 + CA$0.18
CA$2.97
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$2.97 / 22.35
CA$0.13
TSX:VCM Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$0.13
Current discount Discount to share price of CA$9.25
= -1 x (CA$9.25 - CA$0.13) / CA$0.13
-6873.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Vecima Networks is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Vecima Networks's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vecima Networks's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:VCM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$0.11
TSX:VCM Share Price ** TSX (2019-04-25) in CAD CA$9.25
Canada Communications Industry PE Ratio Median Figure of 6 Publicly-Listed Communications Companies 51.38x
Canada Market PE Ratio Median Figure of 558 Publicly-Listed Companies 15.06x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Vecima Networks.

TSX:VCM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:VCM Share Price ÷ EPS (both in CAD)

= 9.25 ÷ 0.11

84.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vecima Networks is overvalued based on earnings compared to the CA Communications industry average.
  • Vecima Networks is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Vecima Networks's expected growth come at a high price?
Raw Data
TSX:VCM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 84.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
135.6%per year
North America Communications Industry PEG Ratio Median Figure of 23 Publicly-Listed Communications Companies 1.37x
Canada Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.21x

*Line of best fit is calculated by linear regression .

TSX:VCM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 84.76x ÷ 135.6%

0.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vecima Networks is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Vecima Networks's assets?
Raw Data
TSX:VCM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$8.44
TSX:VCM Share Price * TSX (2019-04-25) in CAD CA$9.25
Canada Communications Industry PB Ratio Median Figure of 16 Publicly-Listed Communications Companies 1.7x
Canada Market PB Ratio Median Figure of 2,382 Publicly-Listed Companies 1.48x
TSX:VCM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:VCM Share Price ÷ Book Value per Share (both in CAD)

= 9.25 ÷ 8.44

1.1x

* Primary Listing of Vecima Networks.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vecima Networks is good value based on assets compared to the CA Communications industry average.
X
Value checks
We assess Vecima Networks's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Vecima Networks has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

VCM Future Performance

 How is Vecima Networks expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
135.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vecima Networks expected to grow at an attractive rate?
  • Vecima Networks's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Vecima Networks's earnings growth is expected to exceed the Canada market average.
  • Vecima Networks's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:VCM Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:VCM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 135.6%
TSX:VCM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 24.6%
Canada Communications Industry Earnings Growth Rate Market Cap Weighted Average 101.3%
Canada Communications Industry Revenue Growth Rate Market Cap Weighted Average 18.2%
Canada Market Earnings Growth Rate Market Cap Weighted Average 18.6%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:VCM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:VCM Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-06-30 125 9 9 2
2019-06-30 93 7 1 2
TSX:VCM Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 92 11 2
2018-09-30 85 13 2
2018-06-30 78 21 4
2018-03-31 68 22 3
2017-12-31 60 12 3
2017-09-30 65 12 5
2017-06-30 71 14 8
2017-03-31 79 23 12
2016-12-31 92 38 16
2016-09-30 96 49 19
2016-06-30 98 48 21
2016-03-31 97 44 22

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Vecima Networks's earnings are expected to grow significantly at over 20% yearly.
  • Vecima Networks's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:VCM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Vecima Networks Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:VCM Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-06-30 0.31 0.31 0.31 1.00
2019-06-30 0.03 0.03 0.03 1.00
TSX:VCM Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 0.11
2018-09-30 0.08
2018-06-30 0.17
2018-03-31 0.13
2017-12-31 0.14
2017-09-30 0.23
2017-06-30 0.35
2017-03-31 0.51
2016-12-31 0.73
2016-09-30 0.86
2016-06-30 0.95
2016-03-31 1.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Vecima Networks will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Vecima Networks's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Vecima Networks has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

VCM Past Performance

  How has Vecima Networks performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Vecima Networks's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Vecima Networks's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Vecima Networks's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Vecima Networks's 1-year earnings growth is negative, it can't be compared to the CA Communications industry average.
Earnings and Revenue History
Vecima Networks's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Vecima Networks Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:VCM Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 92.46 2.44 30.93 18.06
2018-09-30 84.56 1.72 27.30 16.54
2018-06-30 78.10 3.78 23.79 15.10
2018-03-31 68.39 2.86 19.62 13.75
2017-12-31 59.98 3.18 15.40 12.25
2017-09-30 65.46 5.20 15.38 12.06
2017-06-30 71.46 7.79 15.48 11.75
2017-03-31 78.70 11.50 15.10 11.61
2016-12-31 91.62 16.25 15.65 11.78
2016-09-30 95.95 19.18 15.24 11.31
2016-06-30 98.35 21.23 14.87 10.86
2016-03-31 97.38 22.47 14.77 10.35
2015-12-31 91.94 20.25 15.74 9.64
2015-09-30 91.10 17.67 18.36 9.64
2015-06-30 90.94 16.06 19.95 9.34
2015-03-31 94.91 15.61 21.85 8.92
2014-12-31 94.30 15.46 21.78 8.62
2014-09-30 92.18 23.18 21.34 8.11
2014-06-30 90.71 24.60 21.68 8.19
2014-03-31 87.45 22.98 21.64 7.87
2013-12-31 86.37 21.59 22.02 7.56
2013-09-30 88.24 19.29 22.39 7.95
2013-06-30 91.25 19.16 22.43 7.66
2013-03-31 98.32 18.09 23.91 8.40
2012-12-31 102.65 22.23 24.31 9.47
2012-09-30 100.43 19.30 24.52 10.30
2012-06-30 95.74 13.27 24.94 11.16

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Vecima Networks has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Vecima Networks used its assets less efficiently than the CA Communications industry average last year based on Return on Assets.
  • Vecima Networks's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Vecima Networks's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Vecima Networks has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

VCM Health

 How is Vecima Networks's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Vecima Networks's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Vecima Networks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Vecima Networks's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Vecima Networks's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 40.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Vecima Networks Company Filings, last reported 3 months ago.

TSX:VCM Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 188.61 2.08 44.48
2018-09-30 186.42 2.17 53.39
2018-06-30 189.29 2.23 57.69
2018-03-31 189.64 2.29 64.13
2017-12-31 190.04 2.35 61.04
2017-09-30 189.04 2.42 103.22
2017-06-30 182.24 2.46 89.19
2017-03-31 183.49 2.52 92.01
2016-12-31 174.25 2.58 76.60
2016-09-30 171.93 2.65 82.82
2016-06-30 169.04 2.77 74.09
2016-03-31 166.62 2.83 69.91
2015-12-31 161.70 2.89 71.92
2015-09-30 156.29 2.95 66.33
2015-06-30 151.32 3.10 59.67
2015-03-31 148.26 3.10 56.56
2014-12-31 145.53 3.18 51.98
2014-09-30 142.50 3.27 52.11
2014-06-30 139.47 3.52 48.48
2014-03-31 135.11 3.45 42.08
2013-12-31 131.71 3.55 36.46
2013-09-30 142.59 3.66 36.64
2013-06-30 137.15 4.02 31.85
2013-03-31 134.42 3.90 25.05
2012-12-31 154.70 3.99 41.39
2012-09-30 145.57 4.16 25.73
2012-06-30 140.24 4.51 19.55
  • Vecima Networks's level of debt (1.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (2.7% vs 1.1% today).
  • Debt is well covered by operating cash flow (548.3%, greater than 20% of total debt).
  • Vecima Networks earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Vecima Networks's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Vecima Networks has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

VCM Dividends

 What is Vecima Networks's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.38%
Current annual income from Vecima Networks dividends.
If you bought CA$2,000 of Vecima Networks shares you are expected to receive CA$48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Vecima Networks's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.04%).
  • Vecima Networks's dividend is below the markets top 25% of dividend payers in Canada (5.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:VCM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
North America Communications Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 2.3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.4%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:VCM Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-06-30
2019-06-30
TSX:VCM Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-02-06 0.220 2.329
2018-11-07 0.220 2.597
2018-09-25 0.220 2.505
2018-05-10 0.220 2.507
2018-02-06 0.220 2.369
2017-11-07 0.220 2.273
2017-09-25 0.220 2.207
2017-05-09 0.220 2.176
2017-02-07 0.220 2.091
2016-11-09 0.220 2.320
2016-09-23 0.220 2.541
2016-05-10 0.220 2.131
2016-02-10 0.220 1.908
2015-11-12 0.220 2.037
2015-09-24 0.220 2.022
2015-05-13 0.180 1.730
2015-02-12 0.180 1.738
2014-11-12 0.180 1.884
2014-09-24 0.180 2.188

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Vecima Networks has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Vecima Networks only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Vecima Networks's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Vecima Networks's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Vecima Networks afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vecima Networks has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

VCM Management

 What is the CEO of Vecima Networks's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sumit Kumar
COMPENSATION CA$317,983
TENURE AS CEO 5.7 years
CEO Bio

Mr. Sumit Kumar has been the Chief Executive Officer and President at Vecima Networks Inc. since August 1, 2013 and 2011 respectively. Mr. Kumar work closely with the senior management team and the Board of Directors to develop, manage and execute the overall strategy for Vecima Networks. He served as an Executive Vice President at Vecima Networks Inc., since November 2009 until 2011. He served as Vice President of Corporate Strategy at Vecima Networks Inc., from 2006 to November 2009. Mr. Kumar has significant technical and executive experience, having worked in the R&D department on the architecture and development of EdgeQAM and WiMax products as well as within the business development and senior management groups since joining Vecima in 1995. He has been a Director of Vecima Networks Inc since December 16, 2016. Mr. Kumar holds a Bachelor of Electrical Engineering degree and a Bachelor of Computer Science degree from the University of Saskatchewan.

CEO Compensation
  • Sumit's compensation has been consistent with company performance over the past year.
  • Sumit's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Vecima Networks management team in years:

5.7
Average Tenure
  • The average tenure for the Vecima Networks management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Surinder Kumar

TITLE
Founder & Chairman of the Board
COMPENSATION
CA$66K
TENURE
31.3 yrs

Sumit Kumar

TITLE
CEO, President & Non Independent Director
COMPENSATION
CA$318K
TENURE
5.7 yrs

Dan Gledhill

TITLE
Vice President of Sales
COMPENSATION
CA$447K

Osamu Nakamura

TITLE
President of Concurrent Content Solutions Corporation
COMPENSATION
CA$416K

Clay McCreery

TITLE
Chief Revenue Officer
COMPENSATION
CA$538K

John Hanna

TITLE
Chief Financial Officer
COMPENSATION
CA$231K
TENURE
8.8 yrs

David Hobb

TITLE
Vice President of Operations
TENURE
1.9 yrs

Peter Torn

TITLE
General Counsel & Corporate Secretary

Mark DePietro

TITLE
Senior Vice President of Marketing
COMPENSATION
CA$249K
TENURE
2.7 yrs

Richard Blenkinsop

TITLE
Senior Vice President of Business Development
COMPENSATION
CA$231K
Board of Directors Tenure

Average tenure and age of the Vecima Networks board of directors in years:

1.9
Average Tenure
53.5
Average Age
  • The average tenure for the Vecima Networks board of directors is less than 3 years, this suggests a new board.
Board of Directors

Surinder Kumar

TITLE
Founder & Chairman of the Board
COMPENSATION
CA$66K
TENURE
5.7 yrs

Sumit Kumar

TITLE
CEO, President & Non Independent Director
COMPENSATION
CA$318K
TENURE
2.3 yrs

T. Elliott

TITLE
Lead Independent Director
COMPENSATION
CA$40K
AGE
65
TENURE
0.3 yrs

Danial Faizullabhoy

TITLE
Independent Director
COMPENSATION
CA$43K
AGE
56
TENURE
2.3 yrs

Ben Colabrese

TITLE
Independent Director
COMPENSATION
CA$18K
AGE
51
TENURE
1.4 yrs

Derek Elder

TITLE
Independent Director
AGE
47
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • Vecima Networks insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
26. Feb 19 Sell Surinder Kumar Individual 26. Feb 19 26. Feb 19 -200 CA$9.40 CA$-1,880
11. Jun 18 Sell Surinder Kumar Individual 07. Jun 18 07. Jun 18 -200 CA$8.77 CA$-1,754
X
Management checks
We assess Vecima Networks's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Vecima Networks has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

VCM News

Simply Wall St News

Vecima Networks Inc. (TSE:VCM): The Best Of Both Worlds

I've been keeping an eye on Vecima Networks Inc. … Looking at the company as a whole, as a potential stock investment, I believe VCM has a lot to offer. … is a company with

Simply Wall St -

Why We’re Not Keen On Vecima Networks Inc.’s (TSE:VCM) 0.6% Return On Capital

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Do Directors Own Vecima Networks Inc. (TSE:VCM) Shares?

A look at the shareholders of Vecima Networks Inc. … Vecima Networks is a smaller company with a market capitalization of CA$214m, so it may still be flying under the radar of many institutional investors. … View our latest analysis for Vecima Networks

Simply Wall St -

Should You Be Tempted To Sell Vecima Networks Inc. (TSE:VCM) Because Of Its P/E Ratio?

To keep it practical, we'll show how Vecima Networks Inc.'s (TSE:VCM) P/E ratio could help you assess the value on offer. … Vecima Networks has a P/E ratio of 84.02, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Does Vecima Networks Inc.'s (TSE:VCM) CEO Pay Matter?

Sumit Kumar has been the CEO of Vecima Networks Inc. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Sumit Kumar's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is Vecima Networks Inc's (TSE:VCM) ROE Of 0.9% Concerning?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Vecima Networks Inc (TSE:VCM). … Vecima Networks has a ROE of 0.9%, based on the last twelve months.

Simply Wall St -

Why Vecima Networks Inc (TSE:VCM) Is An Attractive Investment To Consider

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Vecima Networks Inc (TSE:VCM) due to its excellent fundamentals in more than one area. … a excellent

Simply Wall St -

Don't Sell Vecima Networks Inc (TSE:VCM) Before You Read This

We'll show how you can use Vecima Networks Inc's (TSE:VCM) P/E ratio to inform your assessment of the investment opportunity. … Vecima Networks has a P/E ratio of 50.66, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is Vecima Networks Inc's (TSE:VCM) CEO Paid Enough Relative To Peers?

According to our data, Vecima Networks Inc has a market capitalization of CA$195m, and pays its CEO total annual compensation worth CA$327k. … We examined a group of similar sized companies, with market capitalizations of below CA$261m. … It would therefore appear that Vecima Networks Inc pays Sumit Kumar more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

Will Vecima Networks Inc (TSE:VCM) Continue To Underperform Its Industry?

Vecima Networks Inc (TSE:VCM) generated a below-average return on equity of 1.5% in the past 12 months, while its industry returned 5.7%. … Knowing these components can change your views on VCM's below-average returns. … Today I will look at how components such as financial leverage can influence ROE which may impact the sustainability of VCM's returns

Simply Wall St -

VCM Company Info

Description

Vecima Networks Inc. provides technology solutions that empower network service providers to connect people and enterprises to information and entertainment worldwide. Its products for the cable industry allow service providers a last mile solution for video and broadband access in business services market segment. The company operates through three segments: Video and Broadband Solutions, Content Delivery and Storage, and Telematics. The Video and Broadband Solutions segment offers platforms and modules that process data from the cable network and deliver in formats suitable to be consumed on televisions and Internet devices. Its principal products include Terrace and TerraceQAM, which are designed to meet the needs of the business services verticals, such as multi-unit dwellings, hotels, motels, and resorts. The Content Delivery and Storage segment offers solutions and software for industries and customers that focus on storing, protecting, transforming, and delivering media assets. The Telematics segment provides information and analytics for the fleet managers to manage their mobile and fixed assets under the Contigo, Nero Global Tracking, and FleetLynx brands. The company was founded in 1988 and is headquartered in Victoria, Canada. Vecima Networks Inc. is a subsidiary of 684739 B.C. Ltd.

Details
Name: Vecima Networks Inc.
VCM
Exchange: TSX
Founded: 1988
CA$206,775,304
22,354,087
Website: http://www.vecima.com
Address: Vecima Networks Inc.
771 Vanalman Avenue,
Victoria,
British Columbia, V8Z 3B8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX VCM Common Shares The Toronto Stock Exchange CA CAD 14. Nov 2005
OTCPK VNWT.F Common Shares Pink Sheets LLC US USD 14. Nov 2005
Number of employees
Current staff
Staff numbers
389
Vecima Networks employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/26 02:16
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/02/12
Last earnings filing: 2019/02/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.