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Vecima Networks Inc. (TSE:VCM)
TSX:VCM
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Vecima Networks
(TSX:VCM)
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Rating:53Neutral
Price Target:
C$10.50
▲(5.00% Upside)
Vecima Networks' overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability. Technical analysis suggests a neutral market position, while valuation concerns arise from a negative P/E ratio. The dividend yield offers some investor appeal, but the lack of earnings call data and corporate events limits additional insights.
Vecima Networks (VCM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$243.15M
Dividend Yield2.2%
Average Volume (3M)3.67K
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth-1.78%
EPS Growth-191.59%
CountryCA
Employees590
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.05
Shares Outstanding24,314,594
10 Day Avg. Volume5,544
30 Day Avg. Volume3,670
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.05
Price to Sales (P/S)0.78
P/FCF Ratio4.32
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$17.00Price Target Upside70.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Vecima Networks Business Overview & Revenue Model
Company DescriptionVecima 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 MoneyVecima 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 Earnings Call Summary
Earnings Call Date:Sep 25, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in sales and strategic acquisitions, particularly in the Video and Broadband Solutions segment, which drove a substantial increase in operating income and cash flow. However, challenges in the Content Delivery and Storage segment and a shift in product mix affecting gross margins were notable lowlights. The overall sentiment is cautiously optimistic, with expectations of a stronger second half of the year.Q1-2025 Updates
Positive Updates
Record-Breaking Sales Growth
Sales in Q1 of $81.9 million represented the second highest quarterly sales in Vecima's history, up 33% year-over-year.
Entra DAA Portfolio Success
Entra sales have grown over 13-fold from $5.2 million four years ago to $68.3 million this quarter.
VBS Segment Revenue Growth
The Video and Broadband Solutions segment contributed sales of $72.9 million, a 65% year-over-year increase.
Telematics Segment Growth
Telematics segment sales increased 5% year-over-year, with over 72,000 assets monitored for over 200 customers.
Improved Operating Income
Operating income increased 69% year-over-year to $4.5 million, reflecting higher VBS sales.
Strong Cash Flow
Cash flow provided by operations increased to $24.4 million from $8.4 million year-over-year.
Strategic Acquisition of Falcon V Systems
Acquisition of Falcon V Systems brought in new technologies like Principal Core and Test Suite Solution, enhancing Vecima’s product offerings.
Negative Updates
Content Delivery and Storage Segment Decline
CDS segment sales decreased 54% year-over-year and 35% quarter-over-quarter due to delays in customer IPTV deployment projects.
Lower Gross Margins
Gross margin decreased to 41.7% from 48.8% last year, primarily due to product mix changes and reduced high-margin CDS sales.
Commercial Video Sales Decrease
Commercial video sales decreased 15% year-over-year and 23% quarter-over-quarter as customers transition to next-gen technologies.
BEAD Program Delays
Slower than expected start of the USD 42.5 billion BEAD program, impacting potential revenue from fiber access products.
Company Guidance
In the earnings call for Vecima Networks' Q1 fiscal year 2025, the company reported significant growth metrics and strategic developments. Revenue for the quarter reached $81.9 million, marking the second-highest quarterly revenue in the company's history and reflecting a 33% year-over-year increase. The Video and Broadband Solutions (VBS) segment was a key contributor, with sales growing 65% year-over-year to $72.9 million, driven by the Entra Distributed Access Architecture (DAA) sales, which rose 76% year-over-year. Gross profit increased by 14% to $34.2 million, although the gross margin declined to 41.7% from 48.8% due to product mix shifts. Operating income surged 69% to $4.5 million, and net income improved to $2.1 million, or $0.09 per share, compared to $1.7 million or $0.07 per share the previous year. Adjusted EBITDA saw a 43% increase to $11.6 million. The company also highlighted the acquisition of Falcon V Systems, which is expected to enhance its network convergence capabilities and provide new revenue opportunities. Despite some delays in projects within the Content Delivery and Storage (CDS) segment, Vecima anticipates a stronger second half of the fiscal year, driven by continued DAA deployments and new product introductions, including the vCMTS platform and developments in DOCSIS 4.0 technology.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.45
Neutral
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.55
Neutral
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.60
Neutral
| 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
Neutral
10.00
Price Trends
10.09
Negative
10.11
Negative
10.34
Negative
Market Momentum
-0.09
Positive
48.09
Neutral
28.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VCM, the sentiment is Neutral. The current price of 10 is below the 20-day moving average (MA) of 10.07, below the 50-day MA of 10.09, and below the 200-day MA of 10.34, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 28.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:VCM.
Vecima Networks Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$965.28M | 15.76 | 23.51% | 6.87% | 0.34% | -3.86% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | C$243.15M | -13.69 | -7.92% | 2.20% | -1.78% | -191.59% | |
48 Neutral | C$47.32M | -10.30 | ― | ― | ― | ― | |
47 Neutral | $121.54M | -4.52 | -15.76% | ― | 1.48% | 11.75% | |
46 Neutral | C$38.88M | ― | -4.10% | 5.43% | -46.11% | -149.26% | |
41 Neutral | C$592.22M | ― | -21.63% | ― | -25.79% | -413.48% |
* Technology Sector Average
TSE:VCM
Vecima Networks
10.00
-8.25
-45.21%
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Vecima Networks Corporate Events
Business Operations and StrategyFinancial Disclosures
Vecima Networks Achieves Revenue Growth Amid Industry Transition
Positive
Sep 25, 2025
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.
Dividends
Vecima Networks Declares Quarterly Dividend
Positive
Sep 23, 2025
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.
Financial Disclosures
Vecima Networks to Discuss Fiscal 2025 Results in Upcoming Earnings Call
Neutral
Sep 11, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.