TSX:VCM

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Vecima Networks

Executive Summary

Vecima Networks Inc. focuses on developing integrated hardware and software solutions for broadband access, content delivery, and telematics. More Details


Snowflake Analysis

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Vecima Networks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VCM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.2%

VCM

1.2%

CA Communications

1.0%

CA Market


1 Year Return

43.2%

VCM

-6.2%

CA Communications

-5.7%

CA Market

Return vs Industry: VCM exceeded the Canadian Communications industry which returned -5% over the past year.

Return vs Market: VCM exceeded the Canadian Market which returned -8% over the past year.


Shareholder returns

VCMIndustryMarket
7 Day3.2%1.2%1.0%
30 Day2.8%-3.8%-2.6%
90 Day22.5%9.0%5.5%
1 Year46.3%43.2%-4.2%-6.2%-2.4%-5.7%
3 Year42.9%33.2%-14.1%-20.2%7.3%-3.0%
5 Year30.9%16.9%3.0%-9.3%37.4%16.3%

Price Volatility Vs. Market

How volatile is Vecima Networks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vecima Networks undervalued compared to its fair value and its price relative to the market?

158.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VCM (CA$12.8) is trading above our estimate of fair value (CA$3.91)

Significantly Below Fair Value: VCM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VCM is poor value based on its PE Ratio (158.8x) compared to the CA Communications industry average (42.7x).

PE vs Market: VCM is poor value based on its PE Ratio (158.8x) compared to the Canadian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: VCM is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: VCM is overvalued based on its PB Ratio (1.6x) compared to the CA Communications industry average (1.4x).


Next Steps

Future Growth

How is Vecima Networks forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

99.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCM's forecast earnings growth (99.7% per year) is above the savings rate (1.7%).

Earnings vs Market: VCM's earnings (99.7% per year) are forecast to grow faster than the Canadian market (22.7% per year).

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

Revenue vs Market: VCM's revenue (29.9% per year) is forecast to grow faster than the Canadian market (5.2% per year).

High Growth Revenue: VCM's revenue (29.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Vecima Networks performed over the past 5 years?

-59.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VCM has a large one-off gain of CA$455.0K impacting its June 30 2020 financial results.

Growing Profit Margin: VCM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VCM's earnings have declined by 59.7% per year over the past 5 years.

Accelerating Growth: VCM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VCM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (-24%).


Return on Equity

High ROE: VCM's Return on Equity (1%) is considered low.


Next Steps

Financial Health

How is Vecima Networks's financial position?


Financial Position Analysis

Short Term Liabilities: VCM's short term assets (CA$79.7M) exceed its short term liabilities (CA$24.4M).

Long Term Liabilities: VCM's short term assets (CA$79.7M) exceed its long term liabilities (CA$6.2M).


Debt to Equity History and Analysis

Debt Level: VCM's debt to equity ratio (1%) is considered satisfactory.

Reducing Debt: VCM's debt to equity ratio has reduced from 2% to 1% over the past 5 years.

Debt Coverage: VCM's debt is well covered by operating cash flow (575.7%).

Interest Coverage: Insufficient data to determine if VCM's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

1.72%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: VCM's dividend (1.72%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.73%).

High Dividend: VCM's dividend (1.72%) is low compared to the top 25% of dividend payers in the Canadian market (5.9%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, VCM has been paying a dividend for less than 10 years.

Growing Dividend: VCM's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (273%), VCM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Sumit Kumar

7.08yrs

Tenure

CA$389,864

Compensation

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 o ...


CEO Compensation Analysis

Compensation vs Market: Sumit's total compensation ($USD291.32K) is below average for companies of similar size in the Canadian market ($USD687.70K).

Compensation vs Earnings: Sumit's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Surinder Kumar
Founder & Chairman of the Board7.08yrsCA$72.60k0.46%
CA$ 1.3m
Sumit Kumar
CEO, President & Non Independent Director7.08yrsCA$389.86k0.37%
CA$ 1.1m
Dale Booth
Chief Financial Officer0.92yrCA$200.63k0.090%
CA$ 260.3k
Clay McCreery
Chief Operating Officer0.17yrCA$705.45k0.24%
CA$ 694.1k
Dan Gledhill
Vice President of Sales2.75yrsCA$533.07kno data
Ryan Nicometo
Senior VP and GM of the Video & Broadband Solutions Business Unit0.17yrCA$493.40kno data
David Hobb
Vice President of Operations3.33yrsno datano data
Colin Howlett
Chief Technology Officer0.17yrno datano data
Peter Torn
General Counsel & Corporate Secretaryno datano data0.030%
CA$ 86.8k
Richard Blenkinsop
Senior Vice President of Business Developmentno dataCA$230.75kno data
Mark Briggs
Senior VP of Cable Sales & GM of Spectrum Signal Processingno dataCA$229.82kno data
Laird Froese
Senior Vice President of Research & Developmentno dataCA$295.32kno data

1.8yrs

Average Tenure

Experienced Management: VCM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Surinder Kumar
Founder & Chairman of the Board7.08yrsCA$72.60k0.46%
CA$ 1.3m
Sumit Kumar
CEO, President & Non Independent Director7.08yrsCA$389.86k0.37%
CA$ 1.1m
Danial Faizullabhoy
Independent Director3.75yrsCA$42.05k0.0011%
CA$ 3.2k
T. Elliott
Lead Independent Director1.67yrsCA$38.50kno data
Derek Elder
Independent Director2.08yrsCA$27.35kno data
Ben Colabrese
Independent Director2.83yrsCA$29.00kno data

3.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: VCM's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Vecima Networks Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vecima Networks Inc.
  • Ticker: VCM
  • Exchange: TSX
  • Founded: 1988
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: CA$289.971m
  • Shares outstanding: 22.50m
  • Website: https://www.vecima.com

Number of Employees


Location

  • Vecima Networks Inc.
  • 771 Vanalman Avenue
  • Victoria
  • British Columbia
  • V8Z 3B8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VCMTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 2005
VNWT.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 2005

Biography

Vecima Networks Inc. focuses on developing integrated hardware and software solutions for broadband access, content delivery, and telematics. The company enable innovators to advance, connect, entertain, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 00:03
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.