Data Commun Management (DCM) AI Stock Analysis

• Market Cap: C$110.62M
• Dividend Yield: 1.25%
• Average Volume (3M): 22.09K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.54
• Revenue Growth: -5.30%
• EPS Growth: N/A
• Country: CA
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 89
• Industry: Specialty Business Services
• EPS (TTM): 0.09
• Shares Outstanding: 55,308,952
• 10 Day Avg. Volume: 20,416
• 30 Day Avg. Volume: 22,095
• PEG Ratio: -1.20
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.25
• Price Target Upside: 62.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Data Communication Management's overall stock score reflects a combination of strong financial performance driven by revenue growth and strategic achievements. However, high leverage and low profit margins pose risks to financial stability. The positive sentiment from the earnings call and the company's commitment to dividends provide a supportive outlook, while the technical analysis suggests moderate momentum with some caution due to potential overvaluation.

Data Commun Management Business Overview & Revenue Model

Company Description

DATA Communications Management Corp. provides marketing and workflow solutions that solve the complex branding, communications, logistics, and regulatory challenges in North America. Its solutions include DCMFlex workflow management platform to create, edit, track, and execute digital and print assets ranging from email campaigns and welcome kits to retail collateral and HR training material; ASMBL digital asset management; and print and communications management. The company also offers product sales; warehousing and freight services; and marketing solutions, which include business and brand strategy, consumer insights, strategic marketing, and design services. It serves the financial institutions, insurance, healthcare, lottery and gaming, retailing, not-for-profit, energy, and governmental industries. The company was formerly known as DATA Group Ltd. and changed its name to DATA Communications Management Corp. in July 2016. DATA Communications Management Corp. was founded in 1959 and is headquartered in Brampton, Canada.

How the Company Makes Money

DCM generates revenue through multiple streams, primarily focusing on subscription-based services and consultancy fees. The company charges clients for the deployment and maintenance of network infrastructure, as well as for access to their data analytics platforms and cloud computing services. Additionally, DCM offers bespoke consulting services, where businesses pay for tailored solutions and strategic guidance in enhancing their communication and data management capabilities. These services are often supplemented through strategic partnerships with major telecommunications firms and technology providers, enabling DCM to broaden its market reach and service offerings.

Data Commun Management Financial Statement Overview

Summary

Data Commun Management shows growth in revenue and operational efficiency. However, challenges in net profitability, high leverage, and declining free cash flow present potential risks. The company demonstrates strength in cash flow generation but needs to address profitability and leverage concerns to improve its financial health.

Income Statement

Data Commun Management shows a mixed performance in its income statements. The gross profit margin stands at 26.82% TTM, reflecting reasonable profitability. However, the company has struggled with net profitability, as indicated by a negative net profit margin of -0.71% TTM. The revenue growth rate of 10.26% TTM indicates positive growth momentum. Despite a negative net income, the EBIT margin is 6.05% TTM, suggesting some operational efficiency. Overall, the company demonstrates growth potential but faces challenges with net profitability.

Balance Sheet

The balance sheet reveals a relatively high debt-to-equity ratio of 6.32 TTM, indicating significant leverage that could pose financial risk. The equity ratio stands at 10.14% TTM, which is low, reflecting a limited buffer against liabilities. However, the company has improved its equity position over the previous year. Return on Equity is negative at -8.86% TTM, highlighting challenges in generating returns for shareholders. While there are improvements, high leverage remains a concern.

Cash Flow

Cash flow analysis indicates a stable operating cash flow with an operating cash flow to net income ratio of -9.19 TTM, showing that cash generation is not aligned with profitability. The free cash flow to net income ratio is -3.86 TTM. Despite negative net income, the company maintains positive free cash flow, indicating resilience in cash generation. The free cash flow growth rate is -52.67% compared to the previous year, reflecting a decline in free cash availability.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
493.69M	447.73M	273.80M	235.33M	259.31M	282.88M
	Gross Profit
132.41M	118.91M	84.22M	69.53M	72.94M	69.27M
	EBIT
29.86M	31.67M	26.73M	18.65M	24.21M	1.71M
	EBITDA
44.39M	14.60M	36.04M	33.80M	37.46M	7.22M
	Net Income Common Stockholders
-3.49M	-15.85M	13.97M	1.56M	13.30M	-13.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	17.65M	4.21M	901.00K	578.00K	-61.77M
	Total Assets
142.23M	418.75M	149.48M	140.08M	163.92M	214.37M
	Total Debt
66.80M	257.13M	66.85M	75.40M	96.22M	144.09M
	Net Debt
66.80M	239.48M	62.64M	74.50M	95.64M	205.86M
	Total Liabilities
134.72M	389.99M	126.63M	132.04M	153.96M	215.41M
	Stockholders Equity
7.51M	28.76M	22.85M	8.04M	9.96M	-1.04M
Cash Flow		Free Cash Flow
13.47M	28.45M	21.13M	23.72M	46.80M	-5.72M
	Operating Cash Flow
32.05M	32.80M	22.68M	26.95M	47.63M	-811.00K
	Investing Cash Flow
-2.95M	-104.49M	-1.48M	-3.22M	-835.00K	-3.94M
	Financing Cash Flow
-42.53M	85.17M	-17.93M	-23.41M	-45.12M	7.66M

Data Commun Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DCM, the sentiment is Positive. The current price of 2 is above the 20-day moving average (MA) of 1.78, above the 50-day MA of 1.82, and below the 200-day MA of 2.09, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.25 is Neutral, neither overbought nor oversold. The STOCH value of 81.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DCM.

Data Commun Management Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GDI	74 Outperform	C$795.97M	21.06	7.93%	―	1.49%	152.09%
DXT	72 Outperform	C$532.31M	16.89	15.03%	4.11%	-10.24%	-23.79%
TCL.A	71 Outperform	C$1.70B	10.64	8.50%	4.42%	-4.75%	68.04%
TCL.B	71 Outperform	C$1.70B	10.62	8.50%	4.42%	-4.75%	68.04%
DCM	69 Neutral	C$110.62M	15.35	21.19%	1.25%	-5.30%	―
Sector *	64 Neutral	$4.40B	12.09	5.26%	250.03%	4.08%	-11.05%
CGY	63 Neutral	C$568.73M	123.38	0.01%	2.30%	9.02%	-76.61%

Data Commun Management Corporate Events

DATA Communications Management Corp. Announces Strong Q1 2025 Financial Results Amid Strategic Growth Initiatives

DATA Communications Management Corp. reported its Q1 2025 financial results, showing a net income increase to $5.1 million from $1.5 million in Q1 2024, despite a 4.3% decline in revenues to $123.7 million. The company is preparing for potential cross-border tariffs and a Canada Post strike, while focusing on strategic priorities such as organic growth and operational efficiency. DCM’s sustainability efforts include significant reductions in greenhouse gas emissions and a commitment to the UN Global Compact initiative. The company also declared a second quarterly dividend, reflecting its stable financial position.

The most recent analyst rating on (TSE:DCM) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on Data Commun Management stock, see the TSE:DCM Stock Forecast page.

Spark’s Take on TSE:DCM Stock

According to Spark, TipRanks’ AI Analyst, TSE:DCM is a Neutral.

Data Communications Management’s overall score reflects a combination of strong revenue growth and strategic achievements, counterbalanced by high leverage and low profit margins. The earnings call provided a positive outlook with improved guidance, but technical indicators and valuation suggest some caution. The company’s commitment to sustainability and dividends adds a positive long-term perspective.

To see Spark’s full report on TSE:DCM stock, click here.

DATA Communications Management Corp. Declares Quarterly Dividend

DATA Communications Management Corp. has announced a quarterly cash dividend of $0.025 per common share, payable on June 30, 2025, to shareholders of record as of June 16, 2025. This move underscores DCM’s commitment to providing value to its shareholders and reflects its stable financial position, potentially enhancing its attractiveness to investors and solidifying its standing in the market.

The most recent analyst rating on (TSE:DCM) stock is a Buy with a C$5.50 price target. To see the full list of analyst forecasts on Data Commun Management stock, see the TSE:DCM Stock Forecast page.

Spark’s Take on TSE:DCM Stock

According to Spark, TipRanks’ AI Analyst, TSE:DCM is a Neutral.

Data Communications Management’s overall score reflects a combination of strong revenue growth and strategic achievements, counterbalanced by high leverage and low profit margins. The earnings call provided a positive outlook with improved guidance, but technical indicators and valuation suggest some caution. The company’s commitment to sustainability and dividends adds a positive long-term perspective.

To see Spark’s full report on TSE:DCM stock, click here.

DCM Publishes 2024 Sustainability Report, Showcasing Significant ESG Progress

DATA Communications Management Corp. has released its second annual Sustainability Report for 2024, highlighting significant progress in its environmental, social, and governance initiatives. Key achievements include a 33.3% reduction in greenhouse gas emissions since 2020, planting two million trees in partnership with PrintReleaf, and supporting the UN Global Compact sustainability initiative. These efforts underscore DCM’s commitment to sustainability and its impact on improving operational transparency and environmental responsibility, enhancing its industry positioning and stakeholder trust.

Spark’s Take on TSE:DCM Stock

According to Spark, TipRanks’ AI Analyst, TSE:DCM is a Neutral.

Data Communications Management presents a mixed outlook. Strong revenue growth and strategic integration efforts are offset by high leverage and low profit margins. Technical indicators reveal a lack of momentum, while a relatively high P/E ratio suggests potential overvaluation. Nevertheless, recent strategic actions and dividend announcements provide a positive long-term perspective.

To see Spark’s full report on TSE:DCM stock, click here.

DATA Communications Management Corp. to Release Q1 2025 Results

DATA Communications Management Corp. announced it will release its First Quarter 2025 results on May 12, 2025, with a conference call and webcast scheduled for the following day. This announcement underscores DCM’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning by providing insights into its operational performance.

Spark’s Take on TSE:DCM Stock

According to Spark, TipRanks’ AI Analyst, TSE:DCM is a Neutral.

Data Communications Management presents a mixed outlook. Strong revenue growth and strategic integration efforts are offset by high leverage and low profit margins. Technical indicators reveal a lack of momentum, while a relatively high P/E ratio suggests potential overvaluation. Nevertheless, recent strategic actions and dividend announcements provide a positive long-term perspective.

To see Spark’s full report on TSE:DCM stock, click here.

Data Communications Management Corp. Achieves Strong 2024 Financial Performance

Data Communications Management Corp. reported a successful financial year in 2024, with revenues increasing by 7.2% to $480 million and gross profit rising by 9.4% to $130.1 million. The company completed the integration of Moore Canada Corporation ahead of schedule, positioning itself for future growth and profitability. Despite a challenging fourth quarter, DCM announced a special dividend and a regular quarterly dividend program, reflecting confidence in its growth potential. The company is actively mitigating risks from economic and geopolitical factors, including tariffs and raw material costs, by diversifying its supply chain.

DCM Projects Strong Fiscal 2024 Results Amid Successful Integration

Data Communications Management Corp. announced its preliminary financial results for fiscal 2024, projecting revenues between $478 to $480 million and an Adjusted EBITDA of $62 to $64 million. The company has successfully integrated Moore Canada Corporation ahead of schedule, and despite challenges such as exiting low-margin accounts and a Canada Post strike, DCM is poised to leverage its expanded scale and product mix to drive profitable growth and achieve a target gross profit margin of over 30%.

DATA Communications Management Announces Dividend Program and Special Dividend

DATA Communications Management Corp. announced the initiation of a dividend program, declaring a special cash dividend of $0.20 per share and a regular quarterly dividend of $0.025 per share. This decision reflects confidence in the company’s growth potential and cash flow capabilities following the integration of Moore Canada Corporation. The dividend program highlights the company’s improved financial leverage and is expected to enhance shareholder returns.