Vecima Networks (VCM) AI Stock Analysis

• Market Cap: C$239.74M
• Dividend Yield: 2.26%
• Average Volume (3M): 3.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• 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: 87.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: C$10.00 ▲(1.42% Upside)

Vecima Networks shows potential for improvement with strong cash flow management and positive earnings call sentiment. However, challenges in profitability and technical indicators suggest caution. The stock's valuation reflects current profitability issues, but future growth prospects could enhance its attractiveness.

Positive Factors

Cash Flow Management

Improved cash flow management enhances Vecima's ability to invest in growth opportunities and maintain financial stability, supporting long-term operations.

Technological Advancements

Innovative technological advancements position Vecima as a leader in the industry, potentially driving future growth and competitive advantage.

Segment Growth

Strong growth in the Content Delivery and Storage segment indicates robust demand and strengthens Vecima's market position in this area.

Negative Factors

Profitability Challenges

Negative profitability impacts Vecima's ability to reinvest in the business and may hinder long-term financial health if not addressed.

Revenue Decline

Declining revenue growth poses a risk to Vecima's market position and could affect its ability to sustain operations and fund future initiatives.

VBS Segment Revenue Decline

A decline in the VBS segment revenue suggests challenges in product adoption or competition, potentially impacting overall business performance.

Vecima Networks Business Overview & Revenue Model

Company Description

Vecima Networks Inc. is a technology company based in Canada that specializes in providing innovative broadband solutions for cable operators and telecommunications service providers. The company operates primarily in the telecommunications sector, focusing on developing products and services that enhance network performance and connectivity. Vecima's core offerings include solutions for video delivery, broadband access, and network management, which are designed to support the growing demand for high-speed internet and efficient data transmission.

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 a negative net income. The balance sheet is stable with moderate leverage, but the negative return on equity highlights profitability issues. Cash flow performance shows improvement, 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	285.86M	285.86M	291.05M	303.44M	186.81M	124.18M
Gross Profit	109.42M	109.42M	136.66M	141.97M	89.96M	56.64M
EBITDA	10.38M	4.65M	49.81M	55.89M	29.05M	10.77M
Net Income	-17.76M	-17.76M	19.39M	27.21M	8.69M	-331.00K
Balance Sheet
Total Assets	332.07M	332.07M	387.82M	331.69M	262.61M	214.73M
Cash, Cash Equivalents and Short-Term Investments	3.44M	3.44M	2.14M	2.28M	12.90M	28.91M
Total Debt	62.20M	62.20M	69.56M	36.90M	16.90M	5.72M
Total Liabilities	118.50M	118.50M	152.86M	114.03M	82.88M	39.81M
Stockholders Equity	213.57M	213.57M	234.96M	217.65M	179.73M	174.92M
Cash Flow
Free Cash Flow	29.12M	51.95M	-27.34M	-37.36M	-19.94M	1.44M
Operating Cash Flow	54.63M	54.63M	2.71M	-11.01M	3.33M	20.05M
Investing Cash Flow	-37.87M	-37.87M	-26.19M	-26.35M	-23.27M	-5.00M
Financing Cash Flow	-14.68M	-14.68M	23.62M	26.84M	4.99M	-4.61M

Vecima Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.86
• 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 9.86 is below the 20-day moving average (MA) of 9.94, below the 50-day MA of 10.16, and below the 200-day MA of 10.12, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 69.57 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	81 Outperform	C$965.28M	15.76	23.51%	6.48%	0.34%	-3.86%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VCM	54 Neutral	C$239.74M	-12.17	-8.77%	2.26%	-11.70%	-199.55%
QTRH	50 Neutral	$121.54M	-4.52	-15.76%	―	1.48%	11.75%
BYL	46 Neutral	C$47.32M	-10.30	―	―	―	―
CMI	46 Neutral	C$33.81M	―	-4.10%	1.56%	-46.11%	-149.26%
TSAT	41 Neutral	C$531.61M	―	-21.63%	―	-25.79%	-413.48%

Vecima Networks Corporate Events

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.

Vecima Networks Achieves Revenue Growth Amid Industry Transition

Vecima Networks reported a 7.5% increase in quarterly revenue for Q4 of fiscal 2025, driven by the rollout of next-generation solutions and network upgrades by their customers. Despite challenges such as temporary gross margin pressures and currency fluctuations, Vecima achieved record sales in their Entra family, highlighting their strategic positioning in the cable industry’s transition to advanced technologies.

The most recent analyst rating on (TSE:VCM) stock is a Hold with a C$11.50 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. has announced a quarterly dividend of $0.055 per common share, payable on November 3, 2025, to shareholders of record as of October 10, 2025. This move aligns with their ongoing dividend policy and signals stability and potential growth for investors, reinforcing Vecima’s commitment to delivering shareholder value.

The most recent analyst rating on (TSE:VCM) stock is a Hold with a C$11.50 price target. To see the full list of analyst forecasts on Vecima Networks stock, see the TSE:VCM Stock Forecast page.

Vecima Networks to Discuss Fiscal 2025 Results in Upcoming Earnings Call

Vecima Networks has announced a conference call and live audio webcast scheduled for September 25, 2025, to discuss its financial and operational results for the fourth quarter and fiscal year ending June 30, 2025. This announcement is significant as it provides stakeholders, including analysts and institutional investors, an opportunity to engage with the company’s management and gain insights into its financial performance and strategic direction.

The most recent analyst rating on (TSE:VCM) stock is a Hold with a C$11.50 price target. To see the full list of analyst forecasts on Vecima Networks stock, see the TSE:VCM Stock Forecast page.