Data Commun Management (DCM) AI Stock Analysis

• Market Cap: C$99.56M
• Dividend Yield: 2.78%
• Average Volume (3M): 37.83K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.49
• Revenue Growth: -5.30%
• EPS Growth: N/A
• Country: CA
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 87
• Industry: Specialty Business Services
• EPS (TTM): 0.09
• Shares Outstanding: 55,308,952
• 10 Day Avg. Volume: 34,053
• 30 Day Avg. Volume: 37,831
• PEG Ratio: <0.01
• Price to Book (P/B): 2.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.02
• 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: 80.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: C$2.00 ▲(11.11%Upside)

Data Commun Management's overall stock score is driven by strong earnings call outcomes and positive corporate events that enhance its market positioning. Financial performance shows promise but is hindered by high debt levels and low profit margins. Technical analysis indicates a lack of strong momentum, while valuation metrics are favorable.

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

Overall, Data Commun Management shows positive revenue growth and improved equity utilization. However, high leverage and low profit margins present risks to financial stability and profitability. The company needs to enhance operational efficiency and financial structure.

Income Statement

Data Commun Management has shown a positive trajectory in revenue growth, with a significant increase from 2023 to 2024. The Gross Profit Margin improved to 27.1% in 2024 from 26.6% in 2023, indicating better cost management. However, the Net Profit Margin remains low at 0.7% in 2024 due to high operating expenses and zero EBIT in the latest period, which is a concern for profitability. The company needs to focus on improving its operational efficiency to enhance profitability further.

Balance Sheet

The company's Debt-to-Equity Ratio is high, reflecting a significant reliance on debt financing, which could pose financial risks in periods of unstable cash flows. The Return on Equity, while positive at 8.9% in 2024, shows improvement from previous years, indicating better utilization of equity. However, the Equity Ratio is low at 10.2%, suggesting limited financial buffer in the balance sheet. Strengthening equity and reducing debt reliance could improve financial stability.

Cash Flow

The Operating Cash Flow to Net Income Ratio is robust, indicating strong cash flow generation relative to net income in 2024. Despite a decline in Free Cash Flow from 2023 to 2024, the company maintains positive free cash flow, which is essential for funding operations and debt obligations. However, the Free Cash Flow to Net Income Ratio indicates limited conversion of earnings into free cash flow, suggesting a need to enhance cash flow efficiency.

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

Data Commun Management Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.8 is below the 20-day moving average (MA) of 1.81, below the 50-day MA of 1.80, and below the 200-day MA of 1.95, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.30 is Neutral, neither overbought nor oversold. The STOCH value of 29.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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.B	74 Outperform	C$1.75B	9.66	9.65%	23.74%	-2.58%	100.21%
TCL.A	73 Outperform	C$1.75B	9.84	9.65%	23.32%	-2.58%	100.21%
DXT	72 Outperform	C$573.88M	18.26	15.03%	3.80%	-10.24%	-23.79%
DCM	71 Outperform	C$99.56M	13.81	21.19%	2.78%	-5.30%	―
GDI	71 Outperform	C$741.72M	19.48	7.93%	―	1.49%	152.09%
Sector *	71 Outperform	¥255.65B	12.95	8.49%	3.09%	6.31%	12.94%
CGY	67 Neutral	C$557.58M	13,251.35	0.01%	3.12%	3.03%	-99.78%

Data Commun Management Corporate Events

DCM and Atlantic Packaging Achieve Major Reforestation Milestone

DATA Communications Management Corp. announced that its client, Atlantic Packaging Products, has reached a milestone by planting over 50,000 trees through the PrintReleaf program, which is a key part of DCM’s sustainability strategy. This initiative, which measures paper consumption and replants trees accordingly, highlights DCM’s commitment to environmental responsibility and its role in clients’ supply chains. The achievement underscores Atlantic Packaging’s dedication to sustainable practices and environmental leadership in the packaging industry.

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.

DCM Amends Credit Facility to Boost Growth and Flexibility

DATA Communications Management Corp. has announced an amendment to its senior revolving credit facility, extending its maturity date to May 31, 2028, and including an expanded leasing facility for future equipment purchases. This amendment provides DCM with increased flexibility to invest in business growth and execute strategic priorities, demonstrating confidence from its banking partner and potentially enhancing its market 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.

DCM Announces Shareholder Meeting Results: Auditors Reappointed and Directors Elected

DATA Communications Management Corp. held its annual shareholders meeting on May 22, 2025, in Toronto, where 55.76% of the total votes were represented. The meeting resulted in the reappointment of PricewaterhouseCoopers LLP as auditors and the election of all eight proposed directors, reflecting strong shareholder support and stability in the company’s governance structure.

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.

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.

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.

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.

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.