Data Commun Management (DCM) AI Stock Analysis

• Market Cap: C$93.40M
• Dividend Yield: 5.88%
• Average Volume (3M): 42.01K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.74
• Revenue Growth: -7.01%
• EPS Growth: N/A
• Country: CA
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.02
• Shares Outstanding: 54,941,040
• 10 Day Avg. Volume: 62,809
• 30 Day Avg. Volume: 42,014
• PEG Ratio: -0.27
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 9.56
• 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$3.00
• Price Target Upside: 76.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: C$2.00 ▲(17.65% Upside)

Data Commun Management's overall stock score reflects a mixed financial performance with high leverage and moderate profitability, balanced by strong cash flow generation. Technical indicators suggest bullish momentum, but caution is warranted due to overbought signals. The valuation is reasonable, supported by a solid dividend yield. The earnings call provided a mixed outlook, with both positive developments and notable challenges.

Positive Factors

Digital Platform Success

The successful launch of AI-powered platforms enhances DCM's competitive edge in digital solutions, potentially driving future growth and market share.

Net Debt Reduction

Reducing net debt strengthens the balance sheet, improving financial stability and providing more flexibility for strategic investments.

Strong M&A Pipeline

A strong M&A pipeline positions DCM for strategic expansion and diversification, potentially enhancing long-term growth prospects.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in maintaining sales momentum, which could impact long-term growth and profitability.

Gross Margin Decrease

Decreasing gross margins suggest pressure on profitability, which may affect the company's ability to invest in growth initiatives.

Market Uncertainty

Market uncertainties can lead to reduced client spending, affecting revenue and growth potential in the near to medium term.

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 primarily through a subscription-based model for its software products, where clients pay recurring fees for access to its analytics platform and cloud services. Additionally, the company earns significant income from consulting services that provide tailored data management strategies and implementation support. Key revenue streams include long-term contracts with enterprise clients, partnerships with technology firms that integrate DCM's solutions into their offerings, and performance-based incentives from successful data optimization projects. DCM also benefits from repeat business and upselling opportunities as clients expand their data management needs.

Data Commun Management Financial Statement Overview

Summary

Data Commun Management shows a mixed financial performance. While operational efficiency has improved, as seen in EBIT and EBITDA margins, the company faces challenges with declining revenue growth and low net profit margins. The high debt-to-equity ratio poses financial risks, although return on equity remains strong. Cash flow issues, particularly the significant decline in free cash flow, highlight potential liquidity concerns. Overall, the company needs to address leverage and cash flow management to improve financial stability.

Income Statement

The income statement shows a mixed performance. The gross profit margin is stable around 27%, indicating consistent cost management. However, the net profit margin is low at 1.48% TTM, reflecting challenges in converting revenue into profit. Revenue growth has declined by 2.52% TTM, suggesting potential market or operational challenges. EBIT and EBITDA margins have improved slightly, indicating better operational efficiency.

Balance Sheet

The balance sheet reveals significant leverage with a high debt-to-equity ratio of 7.37 TTM, which could pose financial risks. Return on equity is relatively strong at 18.60% TTM, showing effective use of equity to generate profits. However, the equity ratio is low, indicating a heavy reliance on debt financing.

Cash Flow

Cash flow analysis indicates a concerning decline in free cash flow growth by 248.31% TTM, which could affect liquidity. The operating cash flow to net income ratio is low at 0.17 TTM, suggesting challenges in converting profits into cash. The free cash flow to net income ratio is moderate at 0.35 TTM, indicating some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	459.06M	479.96M	447.73M	273.80M	235.33M	259.31M
Gross Profit	121.81M	130.07M	118.91M	84.22M	69.53M	72.94M
EBITDA	61.99M	52.98M	14.60M	36.04M	33.80M	37.46M
Net Income	10.59M	3.57M	-15.85M	13.97M	1.56M	13.30M
Balance Sheet
Total Assets	369.71M	392.30M	418.75M	149.48M	140.08M	163.92M
Cash, Cash Equivalents and Short-Term Investments	3.67M	6.77M	17.65M	4.21M	901.00K	578.00K
Total Debt	260.72M	253.70M	257.13M	66.85M	75.40M	96.22M
Total Liabilities	330.30M	352.34M	389.99M	126.63M	132.04M	153.96M
Stockholders Equity	39.41M	39.96M	28.76M	22.85M	8.04M	9.96M
Cash Flow
Free Cash Flow	13.78M	12.07M	28.45M	21.13M	23.72M	46.80M
Operating Cash Flow	19.65M	24.74M	32.80M	22.68M	26.95M	47.63M
Investing Cash Flow	627.00K	-10.07M	-104.49M	-1.48M	-3.22M	-835.00K
Financing Cash Flow	-25.44M	-25.59M	85.17M	-17.93M	-23.41M	-45.12M

Data Commun Management Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.7 is below the 20-day moving average (MA) of 1.73, above the 50-day MA of 1.49, and above the 200-day MA of 1.60, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 54.89 is Neutral, neither overbought nor oversold. The STOCH value of 32.41 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCL.A	74 Outperform	C$1.91B	11.11	8.95%	8.38%	-2.45%	44.20%
TCL.B	70 Neutral	C$1.91B	11.56	8.95%	8.03%	-2.45%	44.20%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DCM	54 Neutral	C$93.40M	8.88	26.87%	5.88%	-7.01%	―

Data Commun Management Corporate Events

DATA Communications Management Corp. Reports Q3 2025 Financial Results Amid Strategic Advancements

In its Q3 2025 financial results, DATA Communications Management Corp. reported a slight decline in revenues to $105.4 million compared to the previous year, attributed to market uncertainties and client project delays. Despite these challenges, the company maintained strong operating results, reduced SG&A expenses, and launched the AI-powered contentcloud.ai platform to bolster its digital strategy. DCM also achieved a sustainability milestone by planting three million trees, demonstrating its commitment to environmental responsibility. The company continues to focus on organic growth, efficiency improvements, and strategic M&A opportunities to deliver long-term value.

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 December 31, 2025, to shareholders of record as of December 17, 2025. This declaration underscores DCM’s commitment to returning value to its shareholders and may enhance its attractiveness to investors, potentially impacting its market positioning positively.

DATA Communications Management Corp. to Release Q3 2025 Results

DATA Communications Management Corp. announced it will release its Third Quarter 2025 financial results on November 11, 2025, with a conference call and webcast scheduled for November 12, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

DCM Achieves Sustainability Milestone with Three Million Trees Planted

DATA Communications Management Corp. has reached a significant sustainability milestone by planting three million trees through its partnership with PrintReleaf. This initiative, which began in 2021, allows DCM to offset its paper consumption by replanting trees in certified reforestation projects. With a recent five-year contract extension, DCM plans to focus its reforestation efforts exclusively within Canada, collaborating with Forests Canada, pending certification. This milestone underscores DCM’s commitment to environmental responsibility and positions the company as a leader in sustainability within its industry.

DCM Launches AI-Enhanced Digital Asset Management Platform

DATA Communications Management Corp. has launched contentcloud.ai, an advanced AI-powered digital asset management platform designed to enhance the organization, discovery, and sharing of digital content. This platform builds on the company’s previous DAM platform, ASMBL, by offering expanded AI capabilities, a connected ecosystem with leading tools, an improved user interface, and stronger security protocols. The launch underscores DCM’s commitment to digital innovation and positions the company to meet the evolving needs of marketers and content creators, potentially transforming the digital asset management landscape.

DCM’s CCM360 Platform Earns Recognition for Excellence in Customer Communications Management

DCM’s CCM360 software platform has been recognized by Aspire Customer Communications Services for its leadership in customer communications management (CCM) and customer experience management (CXM) across 10 out of 13 industry verticals in Canada. This accolade highlights DCM’s innovative approach in integrating regulatory and marketing communications, enhancing digital adoption, and managing complex communication workflows, which strengthens its market position and offers significant value to stakeholders in regulated sectors.