Data Commun Mgt (TSE:DCM)
TSX:DCM
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Data Commun Management
(TSX:DCM)
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Rating:62Neutral
Price Target:
C$1.50
▼(-6.25% Downside)
Action:ReiteratedDate:03/24/26
Overall score reflects improving profitability and strong free cash flow alongside attractive valuation (low P/E and high yield), partially offset by significant balance-sheet leverage risk. Technicals are mildly positive, and the latest earnings commentary was mixed with continued margin and demand pressures despite debt reduction and product progress.
Positive Factors
Free cash flow generation
Consistently positive operating and free cash flow, with a sharp FCF increase in 2025, underpins durable cash generation. This supports dividends, organic investment, and gradual deleveraging without relying solely on equity raises, strengthening long‑term financial flexibility.
Negative Factors
High leverage
Very elevated debt relative to equity constrains resilience: a thin equity base limits loss absorption and strategic flexibility. Even with recent improvements, high leverage raises refinancing and covenant risk and makes cash flow less tolerant of cyclical shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Consistently positive operating and free cash flow, with a sharp FCF increase in 2025, underpins durable cash generation. This supports dividends, organic investment, and gradual deleveraging without relying solely on equity raises, strengthening long‑term financial flexibility.
Read all positive factors
Data Commun Management (DCM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$87.97M
Dividend Yield5.99%
Average Volume (3M)42.01K
Price to Earnings (P/E)9.8
Beta (1Y)0.65
Revenue Growth-7.01%
EPS GrowthN/A
CountryCA
Employees1,400
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding54,982,613
10 Day Avg. Volume62,809
30 Day Avg. Volume42,014
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)2.42
Price to Sales (P/S)0.20
P/FCF Ratio4.35
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.25Price Target Upside103.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.21
Revenue Forecast (FY)C$459.04M
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 cr...
Data Commun Management Earnings Call Summary
Earnings Call Date:Nov 11, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted a mixed performance for Q3 2025. While there were positive developments in terms of digital platform success, net debt reduction, and a strong M&A pipeline, these were somewhat balanced by challenges such as revenue decline, reduced gross margins, and market uncertainties affecting business confidence.Positive Updates
Adjusted EBITDA Margins Increase
Adjusted EBITDA margin improved slightly to 11.7% from 11.6% a year ago, despite a slight decline in EBITDA value to $12.3 million from $12.6 million.
Negative Updates
Revenue Decline
Overall revenue slightly off from the previous year, with a decline of 3.1%, attributed partly to the impact of the Canada Post and Air Canada labor disputes.
Read all updates
Q3-2025 Updates
Positive
Negative
Adjusted EBITDA Margins Increase
Adjusted EBITDA margin improved slightly to 11.7% from 11.6% a year ago, despite a slight decline in EBITDA value to $12.3 million from $12.6 million.
Read all positive updates
Company Guidance
During the DCM Third Quarter Fiscal 2025 Financial Results Conference Call, several key metrics were discussed, reflecting the company's performance and outlook. Adjusted EBITDA was slightly down from the previous year at $12.3 million compared to $12.6 million, with a margin increase from 11.6% to 11.7%. Revenue saw a decline of 3.1% year-over-year, influenced by external factors like the Canada Post labor disputes and Air Canada strike. Gross margin decreased to 23.4% from 25.8%, primarily due to lower fixed cost overhead recovery. On a positive note, the company reported reducing net debt from $87.5 million to $80.6 million, with a net debt to EBITDA ratio of 1.87x. The company is advancing its digital and AI platforms, launching products like the AI-powered contentcloud, and remains focused on M&A opportunities, supported by over $40 million in total credit availability. They also declared a quarterly dividend of $0.025 per share, maintaining a dividend yield of about 7.5%.Data Commun Management Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
28
Negative
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 450.36M | 479.96M | 447.73M | 273.80M | 235.33M |
| Gross Profit | 116.68M | 130.07M | 118.91M | 84.22M | 69.53M |
| EBITDA | 60.35M | 52.98M | 14.60M | 36.04M | 33.80M |
| Net Income | 9.25M | 3.57M | -15.85M | 13.97M | 1.56M |
Balance Sheet | |||||
| Total Assets | 357.94M | 392.30M | 418.75M | 149.48M | 140.08M |
| Cash, Cash Equivalents and Short-Term Investments | 1.94M | 6.77M | 17.65M | 4.21M | 901.00K |
| Total Debt | 253.54M | 253.70M | 257.13M | 66.85M | 75.40M |
| Total Liabilities | 320.52M | 352.34M | 389.99M | 126.63M | 132.04M |
| Stockholders Equity | 37.42M | 39.96M | 28.76M | 22.85M | 8.04M |
Cash Flow | |||||
| Free Cash Flow | 20.83M | 12.07M | 28.45M | 21.13M | 23.72M |
| Operating Cash Flow | 25.06M | 24.74M | 32.80M | 22.68M | 26.95M |
| Investing Cash Flow | 2.19M | -10.07M | -104.49M | -1.48M | -3.22M |
| Financing Cash Flow | -31.98M | -25.59M | 85.17M | -17.93M | -23.41M |
Data Commun Management Technical Analysis
Positive
1.60
Price Trends
1.56
Positive
1.60
Negative
1.56
Positive
Market Momentum
0.02
Negative
55.69
Neutral
46.05
Neutral
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 1.6 is above the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.56, and above the 200-day MA of 1.56, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.69 is Neutral, neither overbought nor oversold. The STOCH value of 46.05 is Neutral, 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
UnderperformOutperform
Sector (63)
TSE:DCM
Data Commun Management
1.60
-0.17
-9.60%
TSE:TCL.A
Transcontinental
5.24
2.82
116.26%
TSE:TCL.B
Transcontinental Inc. Class B
7.13
3.69
107.21%
Data Commun Management Corporate Events
Dividends
DATA Communications Management Declares Quarterly Dividend of $0.025 per Share
Positive
Mar 12, 2026
DATA Communications Management Corp., a Canadian tech-enabled provider of print and digital communications solutions, serves over 2,500 clients including many of the country’s largest corporations and key government agencies with services ra...
Financial Disclosures
DATA Communications Management to Release Fiscal 2025 Results in March 2026
Neutral
Feb 25, 2026
DATA Communications Management Corp., a Canadian provider of tech-enabled print and digital communications solutions, serves over 2,500 corporate and government clients with offerings spanning customized printing, personalized marketing, campaign ...
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.