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Vecima Networks
(TSX:VCM)
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Rating:67Neutral
Price Target:
C$14.50
▲(16.47% Upside)
Action:Reiterated
Date:09/28/26
The score is driven primarily by solid but not consistent financial performance (strong balance sheet and improved recent cash flow, offset by volatile profitability) and supportive technical trend signals. The latest earnings call adds meaningful upside due to raised growth and margin guidance, while the overall rating is capped by the very high P/E valuation.
Positive Factors
Raised growth and margin outlook
The raised outlook indicates management sees sustained demand across multiple broadband and video platforms, not merely a single-quarter rebound. Delivering 30%-35% fiscal 2027 growth alongside approximately 20% adjusted EBITDA margins would materially improve scale, earnings power, and reinvestment capacity.
Negative Factors
Volatile profitability and thin net margins
The sharp earnings swings show that revenue growth has not yet translated into dependable bottom-line performance. A thin net margin leaves limited protection if product mix worsens, operating costs rise, or demand softens, making medium-term earnings less predictable despite improved operating results.
Read all positive and negative factors
Positive Factors
Negative Factors
Raised growth and margin outlook
The raised outlook indicates management sees sustained demand across multiple broadband and video platforms, not merely a single-quarter rebound. Delivering 30%-35% fiscal 2027 growth alongside approximately 20% adjusted EBITDA margins would materially improve scale, earnings power, and reinvestment capacity.
Read all positive factors
Vecima Networks (VCM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$323.38M
Dividend Yield1.65%
Average Volume (3M)7.69K
Price to Earnings (P/E)100.1
Beta (1Y)0.38
Revenue Growth5.15%
EPS GrowthN/A
CountryCA
Employees601
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.13
Shares Outstanding24,314,594
10 Day Avg. Volume5,661
30 Day Avg. Volume7,690
Financial Highlights & Ratios
PEG Ratio-0.85
Price to Book (P/B)1.47
Price to Sales (P/S)1.08
P/FCF Ratio5.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$22.00Price Target Upside76.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.16
Revenue Forecast (FY)C$383.10M
Vecima Networks Business Overview & Revenue Model
Company Description
Vecima Networks Inc. engineers and delivers sophisticated technology solutions that enable network and content providers worldwide to connect people and businesses to vital information and entertainment. The company's product suite caters specific...
How the Company Makes Money
Vecima makes money primarily by selling broadband access and video/network infrastructure products and associated software to service providers, along with ongoing support and services tied to those deployments.
Key revenue streams typically incl...
Vecima Networks Earnings Call Summary
Earnings Call Date:Sep 24, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call was strongly positive, marked by record quarterly revenue, adjusted EBITDA, margins, profitability, cash flow, customer expansion, lower net debt, and raised growth guidance. The company also described broad-based demand across DAA, fiber-to-the-home, IPTV, and emerging platforms. The main challenges were a higher effective tax rate, ongoing interest expense, tariff uncertainty, modest sequential margin pressure from product mix, and limited near-term contribution from BEAD and newer platforms.Positive Updates
Record Fourth-Quarter Revenue and Adjusted EBITDA
Vecima reported its strongest quarter in company history, with consolidated revenue increasing 36% year-over-year to a record CAD 91 million and 45% sequentially. Q4 adjusted EBITDA more than tripled year-over-year to an all-time high of $18.9 million, with an adjusted EBITDA margin of 20.8%.
Negative Updates
Higher Effective Tax Rate
The effective tax rate was 41%, higher than usual, primarily due to write-offs of British Columbia-generated investment tax credits related to the telematics business and provision-to-return adjustments in Canada and the United States.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Fourth-Quarter Revenue and Adjusted EBITDA
Vecima reported its strongest quarter in company history, with consolidated revenue increasing 36% year-over-year to a record CAD 91 million and 45% sequentially. Q4 adjusted EBITDA more than tripled year-over-year to an all-time high of $18.9 million, with an adjusted EBITDA margin of 20.8%.
Read all positive updates
Company Guidance
Vecima raised its calendar 2026 revenue expectations to 27%-32% growth versus calendar 2025 and expects fiscal 2027 revenue growth of 30%-35% versus fiscal 2026, with a very strong adjusted EBITDA margin of approximately 20% in both calendar 2026 and fiscal 2027. The company expects steady overall operating performance in Content Delivery and Storage, with Terrace IQ expected to start providing meaningful contribution as the 2027 fiscal year progresses; BEAD is expected to provide some contribution through fiscal 2027 but is probably not too consequential within the boundary of fiscal 2027. It expects lower interest expense in 2027, may see some cash taxes in fiscal 2027 in the U.S. depending upon how results come in, does not anticipate significant OPEX increases in the near term, and expects steady growth over the quarters with not a lot of growth in inventory, naturally growing AR, cash generation, debt reduction, reinvestment, and working capital improvements throughout the year.Vecima Networks Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
66
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 294.96M | 285.86M | 291.05M | 303.44M | 186.81M |
| Gross Profit | 108.10M | 109.42M | 136.66M | 141.97M | 89.96M |
| EBITDA | 43.04M | 8.62M | 49.81M | 55.89M | 29.05M |
| Net Income | 3.17M | -17.76M | 19.39M | 27.21M | 8.69M |
Balance Sheet | |||||
| Total Assets | 335.55M | 332.07M | 387.82M | 331.69M | 262.61M |
| Cash, Cash Equivalents and Short-Term Investments | 2.88M | 3.44M | 2.14M | 2.28M | 12.90M |
| Total Debt | 48.73M | 62.20M | 69.56M | 36.90M | 16.90M |
| Total Liabilities | 119.44M | 118.50M | 152.86M | 114.03M | 82.88M |
| Stockholders Equity | 216.11M | 213.57M | 234.96M | 217.65M | 179.73M |
Cash Flow | |||||
| Free Cash Flow | 53.85M | 51.95M | -27.34M | -37.36M | -19.94M |
| Operating Cash Flow | 57.80M | 54.63M | 2.71M | -11.01M | 3.33M |
| Investing Cash Flow | -37.35M | -37.87M | -26.19M | -26.35M | -23.27M |
| Financing Cash Flow | -20.53M | -14.68M | 23.62M | 26.84M | 4.99M |
Vecima Networks Technical Analysis
Positive
12.45
Price Trends
12.67
Positive
12.78
Positive
12.46
Positive
Market Momentum
0.19
Positive
54.55
Neutral
30.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VCM, the sentiment is Positive. The current price of 12.45 is below the 20-day moving average (MA) of 13.38, below the 50-day MA of 12.67, and below the 200-day MA of 12.46, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 30.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:VCM.
Vecima Networks Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$323.38M | 100.08 | 1.49% | 1.65% | 5.15% | ― | |
65 Neutral | C$1.04B | 17.33 | 27.94% | 13.29% | 3.94% | -2.30% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
44 Neutral | C$11.28M | -16.67 | -116.67% | ― | ― | ― | |
43 Neutral | C$35.50M | -93.48 | -1.69% | 4.17% | -26.68% | -92.00% | |
42 Neutral | C$8.62M | -6.03 | 108.98% | ― | ― | 39.80% | |
41 Neutral | C$4.01M | -35.29 | 18.72% | ― | -10.92% | -135.71% |
* Technology Sector Average
TSE:VCM
Vecima Networks
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3.53
36.13%
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Vecima Networks Corporate Events
Business Operations and StrategyFinancial Disclosures
Vecima Delivers Record Q4 and Fiscal 2026 as Next-Gen Access Products Drive Growth
Positive
Sep 24, 2026
Vecima Networks reported a breakout fourth quarter and fiscal 2026, with Q4 revenue jumping to $91.0 million and adjusted EBITDA reaching a record $18.9 million, lifting full-year revenue to $295.0 million and returning the company to profitabilit...
Business Operations and StrategyM&A Transactions
Vecima Buys Akleza’s CableDiag Platform to Boost AI-Driven Broadband Analytics
Positive
Sep 21, 2026
Vecima Networks has acquired Akleza’s CableDiag Proactive Network Maintenance platform and related assets, integrating a widely deployed software suite that monitors more than five million DOCSIS devices across North America into its AI-powe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.