Vecima Networks (VCM) AI Stock Analysis

• Market Cap: C$243.15M
• Dividend Yield: 2.14%
• Average Volume (3M): 3.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -11.70%
• EPS Growth: -199.55%
• Country: CA
• Employees: 590
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.05
• Shares Outstanding: 24,314,594
• 10 Day Avg. Volume: 5,544
• 30 Day Avg. Volume: 3,670
• PEG Ratio: 0.07
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 4.32
• 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$18.50
• Price Target Upside: 85.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: C$10.00 ▲(0.00% Upside)

Vecima Networks' overall stock score reflects financial challenges and valuation concerns, with a negative P/E ratio and declining revenues. Technical analysis indicates a bearish trend, while the earnings call provides a more optimistic outlook with revenue growth and technological advancements. The positive sentiment from the earnings call partially offsets the financial and valuation weaknesses.

Positive Factors

Technological Advancements

Vecima's industry-first innovations in broadband technology enhance its competitive edge and position as a leader in high-speed internet solutions.

Content Delivery and Storage Growth

The strong growth in the Content Delivery and Storage segment reflects increasing demand for Vecima's solutions, supporting long-term revenue expansion.

Strong Adjusted EBITDA Performance

Significant improvement in adjusted EBITDA indicates enhanced operational efficiency and profitability, strengthening financial health.

Negative Factors

Revenue Decline

Declining revenue growth poses challenges to sustaining market position and may impact long-term financial stability.

Profitability Challenges

Ongoing profitability issues highlight the need for better cost management and operational efficiency to ensure sustainable growth.

Cash Flow Concerns

Weak cash generation limits financial flexibility and could hinder investment in growth opportunities and debt servicing.

Vecima Networks Business Overview & Revenue Model

Company Description

Vecima Networks Inc. provides technology solutions that empower network service providers and content providers to connect people and enterprises to information and entertainment worldwide. It offers products for the cable and broadcast industries, which provides video and broadband access to service providers, content creators, and broadcasters. The company operates through three segments: Video and Broadband Solutions, Content Delivery and Storage, and Telematics. The Video and Broadband Solutions segment offers platforms and modules that process data from the cable network and deliver in formats suitable to be consumed on televisions and Internet devices. Its principal products include Terrace and TerraceQAM, which are designed to meet the needs of the business services verticals, such as multi-unit dwellings, hotels, motels, and resorts; and Entra distributed access platform that addresses the network migration to a distributed access architecture. The Content Delivery and Storage segment offers solutions and software for industries and customers that focus on ingesting, producing, storing, delivering, and streaming video content for live linear, video on demand, network digital video recorder, and time-shifted TV services under the MediaScaleX and ContentAgent brands. The Telematics segment provides information and analytics for the fleet managers to manage their mobile and fixed assets under the Contigo, Nero Global Tracking, and FleetLynx brands. The company was founded in 1988 and is headquartered in Victoria, Canada. Vecima Networks Inc. is a subsidiary of 684739 B.C. Ltd.

How the Company Makes Money

Vecima Networks generates revenue through the sale of its hardware and software solutions to service providers and telecom companies. Key revenue streams include the sale of broadband access products, video delivery systems, and network management solutions. Additionally, the company may earn recurring revenue through maintenance contracts, software updates, and support services. Strategic partnerships with major telecommunications companies and cable operators also contribute significantly to its earnings, allowing Vecima to expand its market reach and enhance its product offerings.

Vecima Networks Financial Statement Overview

Summary

Vecima Networks faces challenges in revenue growth and profitability, with declining margins and negative net income. The balance sheet shows stability with moderate leverage, but negative return on equity highlights profitability issues. Cash flow performance is improving, particularly in free cash flow growth, indicating better cash management.

Income Statement

Vecima Networks has experienced a decline in revenue growth, with a negative growth rate of -6.15% in the latest period. The gross profit margin has decreased from previous years, indicating potential challenges in maintaining cost efficiency. The net profit margin has turned negative, reflecting a loss in profitability. Despite these challenges, the company maintains a positive EBITDA margin, suggesting some operational efficiency.

Balance Sheet

The company has a moderate debt-to-equity ratio of 0.29, indicating a balanced approach to leveraging. However, the return on equity is negative, reflecting recent losses. The equity ratio remains stable, suggesting a solid asset base relative to equity. Overall, the balance sheet shows stability but highlights the need for improved profitability.

Cash Flow

Vecima Networks shows a significant improvement in free cash flow growth, with a 33.58% increase, indicating better cash management. The operating cash flow to net income ratio is below 1, suggesting that cash generation from operations is not fully covering net income. However, the free cash flow to net income ratio is close to 1, reflecting efficient cash conversion despite net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	275.03M	285.86M	291.05M	303.44M	186.81M	124.18M
Gross Profit	105.15M	109.42M	136.66M	141.97M	89.96M	56.64M
EBITDA	9.44M	4.65M	49.81M	55.89M	29.05M	10.77M
Net Income	-19.70M	-17.76M	19.39M	27.21M	8.69M	-331.00K
Balance Sheet
Total Assets	335.51M	332.07M	387.82M	331.69M	262.61M	214.73M
Cash, Cash Equivalents and Short-Term Investments	8.57M	3.44M	2.14M	2.28M	12.90M	28.91M
Total Debt	69.27M	62.20M	69.56M	36.90M	16.90M	5.72M
Total Liabilities	121.39M	118.50M	152.86M	114.03M	82.88M	39.81M
Stockholders Equity	214.12M	213.57M	234.96M	217.65M	179.73M	174.92M
Cash Flow
Free Cash Flow	11.09M	51.95M	-27.34M	-37.36M	-19.94M	1.44M
Operating Cash Flow	36.94M	54.63M	2.71M	-11.01M	3.33M	20.05M
Investing Cash Flow	-38.22M	-37.87M	-26.19M	-26.35M	-23.27M	-5.00M
Financing Cash Flow	8.74M	-14.68M	23.62M	26.84M	4.99M	-4.61M

Vecima Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.00
• 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:VCM, the sentiment is Negative. The current price of 10 is below the 20-day moving average (MA) of 10.01, above the 50-day MA of 9.93, and above the 200-day MA of 9.96, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 47.30 is Neutral, neither overbought nor oversold. The STOCH value of 48.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VCM.

Vecima Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ET	78 Outperform	C$1.04B	16.05	24.24%	5.97%	2.96%	11.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VCM	53 Neutral	C$243.15M	-12.34	-8.77%	2.14%	-11.70%	-199.55%
CMI	50 Neutral	C$37.19M	-37.93	-4.10%	1.52%	-46.11%	-149.26%
NVI	44 Neutral	C$2.13M	3.97	―	―	0.73%	―
IMI	41 Neutral	C$22.45M	-11.40	―	―	37.33%	-7.55%
YFI	41 Neutral	C$11.96M	-5.26	―	―	―	-716.67%

Vecima Networks Corporate Events

Vecima Successfully Completes 2025 AGM, Approves Key Resolutions

Vecima Networks Inc. announced the successful completion of its Annual General Meeting, highlighting the approval of all resolutions, including the election of six directors, the appointment of Ernst & Young LLP as auditor, and the continuation of its Stock Option and Performance Share Unit Plans with authorized grants extended until 2028. These developments ensure operational stability, enhance shareholder value, and underscore Vecima’s commitment to strategic growth in the evolving broadband and video streaming industries.

The most recent analyst rating on (TSE:VCM) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on Vecima Networks stock, see the TSE:VCM Stock Forecast page.

Vecima Networks Reports Strong Q1 Fiscal 2026 Results with Notable Product Advancements

Vecima Networks reported a strong start to fiscal 2026 with Q1 revenue of $71.1 million, a gross margin of 42.1%, and an adjusted EBITDA of $11.5 million, marking a 71% increase from the previous quarter. The company highlighted significant progress in commercializing its new vCMTS solutions, securing new customers in Europe, and expanding its product offerings, including the EN9000 and EN3400 GAP nodes. Vecima’s strategic advancements and robust product performance indicate a positive growth trajectory, despite potential impacts from industry consolidation among cable operators.

The most recent analyst rating on (TSE:VCM) stock is a Hold with a C$10.50 price target. To see the full list of analyst forecasts on Vecima Networks stock, see the TSE:VCM Stock Forecast page.

Vecima Networks Declares Quarterly Dividend

Vecima Networks Inc. announced a quarterly dividend of $0.055 per common share, payable on December 22, 2025, to shareholders on record as of November 28, 2025. This decision aligns with Vecima’s dividend policy and reflects the company’s commitment to providing shareholder value. The dividend is designated as an ‘eligible dividend’ for Canadian tax purposes, and future dividends will depend on board approval. This announcement underscores Vecima’s stable financial strategy and its focus on maintaining strong shareholder relations.

The most recent analyst rating on (TSE:VCM) stock is a Hold with a C$10.50 price target. To see the full list of analyst forecasts on Vecima Networks stock, see the TSE:VCM Stock Forecast page.

Vecima Networks Schedules Q1 Fiscal 2026 Results Call

Vecima Networks has announced a conference call and live audio webcast scheduled for November 13, 2025, to discuss its financial and operational results for the first quarter of fiscal 2026, which ended on September 30, 2025. The announcement highlights Vecima’s ongoing commitment to transparency and engagement with analysts and institutional investors, reflecting its strategic positioning in the industry and potential implications for stakeholders.

The most recent analyst rating on (TSE:VCM) stock is a Hold with a C$10.50 price target. To see the full list of analyst forecasts on Vecima Networks stock, see the TSE:VCM Stock Forecast page.