Data Commun Management (DCM) AI Stock Analysis

• Market Cap: C$77.99M
• Dividend Yield: 5.36%
• Average Volume (3M): 25.25K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.49
• Revenue Growth: -8.92%
• EPS Growth: N/A
• Country: CA
• Employees: 1,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.07
• Shares Outstanding: 55,308,952
• 10 Day Avg. Volume: 34,610
• 30 Day Avg. Volume: 25,254
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$1.50
• Price Target Upside: 7.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: C$1.50 ▲(7.14% Upside)

Data Commun Management's overall stock score reflects a mixed financial performance with significant leverage and cash flow challenges. While the company shows operational improvements and a strong dividend yield, technical indicators suggest a neutral to bearish trend. The earnings call provided some optimism with strong EBITDA and new business developments, but revenue declines and market uncertainties remain concerns.

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 a diversified business model that includes the sale of hardware and software solutions, subscription-based services, and consulting fees. Key revenue streams include the provision of network infrastructure equipment, cloud service subscriptions, and managed IT services. Additionally, DCM partners with major telecommunications companies to deliver integrated solutions, which contributes significantly to its earnings. These partnerships enable DCM to expand its market reach and offer comprehensive packages tailored to client needs, thereby driving further revenue growth.

Data Commun Management Financial Statement Overview

Summary

Data Communications Management shows strong revenue growth and improved operational margins. However, challenges remain in net profitability and leverage, with a high debt-to-equity ratio and declining operating cash flow.

Income Statement

The company shows a strong revenue growth trajectory with a significant increase from 2023 to 2024. Gross profit margin and EBIT margin have improved, indicating enhanced operational efficiency. However, net profit margin remains low, suggesting challenges in translating revenue growth into net income.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicating potential leverage risks. Despite this, the company has improved its equity position over the years. Return on equity is positive, but the equity ratio remains low, highlighting reliance on debt financing.

Cash Flow

Cash flow analysis shows positive free cash flow growth, supported by strong operating cash flow relative to net income. However, the decline in operating cash flow from 2023 to 2024 suggests potential cash generation challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	462.42M	479.96M	447.73M	273.80M	235.33M	259.31M
Gross Profit	125.19M	130.07M	118.91M	84.22M	69.53M	72.94M
EBITDA	57.62M	52.98M	14.60M	36.04M	33.80M	37.46M
Net Income	6.86M	3.57M	-15.85M	13.97M	1.56M	13.30M
Balance Sheet
Total Assets	376.72M	392.30M	418.75M	149.48M	140.08M	163.92M
Cash, Cash Equivalents and Short-Term Investments	2.89M	6.77M	17.65M	4.21M	901.00K	578.00K
Total Debt	263.91M	253.70M	257.13M	66.85M	75.40M	96.22M
Total Liabilities	340.93M	352.34M	389.99M	126.63M	132.04M	153.96M
Stockholders Equity	35.79M	39.96M	28.76M	22.85M	8.04M	9.96M
Cash Flow
Free Cash Flow	4.53M	12.07M	28.45M	21.13M	23.72M	46.80M
Operating Cash Flow	12.77M	24.74M	32.80M	22.68M	26.95M	47.63M
Investing Cash Flow	-1.69M	-10.07M	-104.49M	-1.48M	-3.22M	-835.00K
Financing Cash Flow	-20.99M	-25.59M	85.17M	-17.93M	-23.41M	-45.12M

Data Commun Management Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.40
• 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 1.4 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.50, and below the 200-day MA of 1.72, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.34 is Neutral, neither overbought nor oversold. The STOCH value of 32.34 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	76 Outperform	1.65B	9.37	6.35%	9.64%	-2.90%	57.43%
DXT	72 Outperform	570.75M	16.61	―	3.82%	-5.62%	88.69%
TCL.A	68 Neutral	1.65B	9.40	6.35%	9.83%	-2.90%	57.43%
CGY	66 Neutral	567.45M	-900.55	-0.22%	2.29%	1.44%	-103.80%
GDI	63 Neutral	660.84M	18.73	6.45%	―	-0.87%	117.78%
DCM	53 Neutral	C$77.99M	11.37	17.74%	5.36%	-8.92%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Data Commun Management Corporate Events

DATA Communications Management Corp. Reports Resilient Q2 2025 Amid Market Challenges

DATA Communications Management Corp. reported a decrease in Q2 2025 revenues to $113.8 million from $125.8 million in Q2 2024, attributed to challenging market conditions and economic uncertainties. Despite these challenges, the company maintained a steady operating performance with a slightly higher adjusted EBITDA margin. The company is focusing on maintaining financial stability, exploring M&A opportunities, and growing its pipeline of new business opportunities, while withdrawing financial guidance due to ongoing market uncertainties.

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. announced a quarterly cash dividend of $0.025 per common share, payable on September 24, 2025, to shareholders of record as of September 10, 2025. This move reflects DCM’s commitment to delivering value to its shareholders and reinforces its position as a key player in the Canadian print and digital solutions 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.

DATA Communications Management to Announce Q2 2025 Results

DATA Communications Management Corp. announced it will release its Second Quarter 2025 financial results on August 6, 2025. The company will hold a conference call and webcast on August 7, 2025, where CEO Richard Kellam and CFO James Lorimer will present the results, followed by a live Q&A session. This announcement is part of DCM’s ongoing efforts to maintain transparency with stakeholders and provide insights into its financial performance and strategic direction.

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.