Vecima Networks Inc.

TSX:VCM Stock Report

Market Cap: CA$372.7m

Vecima Networks Valuation

Is VCM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of VCM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VCM (CA$15.33) is trading below our estimate of fair value (CA$37.6)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VCM?

Key metric: As VCM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for VCM. This is calculated by dividing VCM's market cap by their current earnings.
What is VCM's PE Ratio?
PE Ratio18.8x
EarningsCA$19.79m
Market CapCA$372.71m

Price to Earnings Ratio vs Peers

How does VCM's PE Ratio compare to its peers?

The above table shows the PE ratio for VCM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.4x
HAI Haivision Systems
28.8x48.4%CA$147.6m
ET Evertz Technologies
16.1x8.2%CA$904.4m
CMI C-Com Satellite Systems
25.1xn/aCA$49.9m
TTZ Total Telcom
15.7xn/aCA$5.8m
VCM Vecima Networks
18.8xn/aCA$372.7m

Price-To-Earnings vs Peers: VCM is good value based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (21.4x).

Price to Earnings Ratio vs Industry

How does VCM's PE Ratio compare vs other companies in the North American Communications Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
VCM 18.8xIndustry Avg. 24.3xNo. of Companies5PE020406080100+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VCM is good value based on its Price-To-Earnings Ratio (18.8x) compared to the North American Communications industry average (24.3x).

Price to Earnings Ratio vs Fair Ratio

What is VCM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VCM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate VCM's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst VCM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$15.33
CA$26.25
+71.2%
11.9%CA$31.00CA$23.00n/a4
Dec ’25CA$17.29
CA$27.25
+57.6%
9.1%CA$31.00CA$24.00n/a4
Nov ’25CA$20.22
CA$27.50
+36.0%
3.1%CA$29.00CA$27.00n/a4
Oct ’25CA$20.50
CA$27.50
+34.1%
3.1%CA$29.00CA$27.00n/a4
Sep ’25CA$20.39
CA$27.50
+34.9%
3.1%CA$29.00CA$27.00n/a4
Aug ’25CA$22.10
CA$27.50
+24.4%
3.1%CA$29.00CA$27.00n/a4
Jul ’25CA$20.89
CA$27.50
+31.6%
3.1%CA$29.00CA$27.00n/a4
Jun ’25CA$19.70
CA$27.50
+39.6%
3.1%CA$29.00CA$27.00n/a4
May ’25CA$19.90
CA$26.75
+34.4%
6.7%CA$29.00CA$24.00n/a4
Apr ’25CA$20.70
CA$25.75
+24.4%
9.3%CA$29.00CA$23.00n/a4
Mar ’25CA$17.61
CA$25.75
+46.2%
9.3%CA$29.00CA$23.00n/a4
Feb ’25CA$15.79
CA$26.00
+64.7%
6.7%CA$27.00CA$23.00n/a4
Jan ’25CA$16.35
CA$26.00
+59.0%
6.7%CA$27.00CA$23.00n/a4
Dec ’24CA$16.17
CA$26.00
+60.8%
6.7%CA$27.00CA$23.00CA$17.294
Nov ’24CA$16.26
CA$26.00
+59.9%
7.2%CA$28.00CA$23.00CA$20.224
Oct ’24CA$17.84
CA$26.00
+45.7%
7.2%CA$28.00CA$23.00CA$20.504
Sep ’24CA$17.20
CA$27.75
+61.3%
4.7%CA$30.00CA$27.00CA$20.394
Aug ’24CA$18.13
CA$27.75
+53.1%
4.7%CA$30.00CA$27.00CA$22.104
Jul ’24CA$17.55
CA$27.75
+58.1%
4.7%CA$30.00CA$27.00CA$20.894
Jun ’24CA$18.62
CA$27.75
+49.0%
4.7%CA$30.00CA$27.00CA$19.704
May ’24CA$23.00
CA$30.75
+33.7%
9.0%CA$34.00CA$28.00CA$19.904
Apr ’24CA$23.00
CA$30.75
+33.7%
9.0%CA$34.00CA$28.00CA$20.704
Mar ’24CA$21.25
CA$30.75
+44.7%
9.0%CA$34.00CA$28.00CA$17.614
Feb ’24CA$20.77
CA$27.50
+32.4%
9.8%CA$32.00CA$25.00CA$15.794
Jan ’24CA$19.39
CA$27.50
+41.8%
9.8%CA$32.00CA$25.00CA$16.354
Dec ’23CA$18.74
CA$28.33
+51.2%
9.3%CA$32.00CA$26.00CA$16.173

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 23:49
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Vecima Networks Inc. is covered by 11 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jim ByrneAcumen Capital Finance Partners Limited
Ku KangB. Riley Securities, Inc.
Todd CouplandCIBC Capital Markets