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DCM.TO (DCM) Fair Value & Analysis

Industrials · CA · Market cap C$142M (≈ $102M) · ISIN CA23761M1023

What is DCM.TO really worth?

DT DCM.TO DCM · TO
PriceC$2.58
Fair ValueC$3.46
Upside+34.1%
Quality44/100

Below-average quality, trading 25% below our fair value of C$3.46.

As of Aug 18, 2026, the fair value of DCM.TO is C$3.46 per share against a price of C$2.58, so the fair value sits 34% above the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Risks

!Mixed Growth (revenue 5y +11.7 %/yr)
!Thin margins · 2.0% net margin
!High debt · generates free cash flow
!Mixed vs. peers (8/14)
!Moderate moat 52/100
!Weak on balance sheet: 13 out of 100

For context

·3.88% dividend yield
Evidence: High Range C$2.41 – C$4.32

Fair value as of: Aug 18, 2026

From 24 valuation models · updated 19 days ago

Share price −11.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The large discount to fair value meets weak quality (44/100). That raises the risk this is a value trap rather than a bargain.
  • The price sits in the lower half of our model range, the side with the larger margin of safety.
  • The data supports the verdict: every model runs on fully documented inputs.

Price vs Fair Value (5 years)

C$3.16 C$0.7898 Fair Value C$3.46 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 18, 2026.

How to read this chart

60‑month range C$0.7898 – C$3.16 · fair‑value band C$2.41 – C$4.32 · the C$2.58 price screens below the C$3.46 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 18, 2026.

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Analysis

DCM.TO (DCM) currently trades at C$2.58, while our model-based Fair Value estimate is C$3.46, implying the stock looks roughly 25.4% undervalued today. The Quality Score stands at 44/100 (below-average quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of C$3.53 per share, and 15 of the 24 models we run sit above the C$2.58 price. Bear case: the Asset-Based group reads lowest at C$0.4500, and 9 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, DCM.TO generated revenue of C$444M at a net margin of 2.0%. Revenue declined 5.0% year over year. It earns a return on equity of 24.2%. Net debt stands at C$252M. Fundamentals as of Aug 18, 2026

Our scenario range runs from C$2.41 (bear case) to C$4.32 (bull case); at C$2.58, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 113% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −24% fair-value upside, at 34%, DCM screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly C$0.0341 per share, which is 1.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF C$1.66 C$2.32 C$3.36 80
Growth DCF C$1.71 C$2.33 C$3.24 79
Owner Earnings C$3.29 C$4.34 C$5.99 77
All 24 models by family
DCF Models
FCF DCF C$1.66 C$2.32 C$3.36 80
Owner Earnings C$3.29 C$4.34 C$5.99 77
5Y Revenue Exit C$2.76 C$4.67 C$7.38 71
5Y EBITDA Exit C$5.01 C$8.51 C$13.02 74
5Y P/E Exit C$1.36 C$2.29 C$3.36 70
10Y Revenue Exit C$2.11 C$3.53 C$5.17 66
10Y EBITDA Exit C$3.40 C$5.70 C$8.37 68
10Y P/E Exit C$1.48 C$2.18 C$2.88 64
Earnings-Based
Graham-Dodd C$1.12 C$1.98 C$2.43 66
EPV C$2.57 C$3.01 C$3.37 74
Dividend Discount
Gordon GGM C$2.05 C$2.48 C$2.87 69
DDM Multi-Stage C$2.05 C$2.57 C$3.08 67
Multiples
P/E Multiple C$2.59 C$3.46 C$4.32 63
P/S Multiple C$2.10 C$2.80 C$3.50 58
P/B Multiple C$2.10 C$2.80 C$3.50 55
EV/EBIT C$6.20 C$8.65 C$11.09 66
EV/EBITDA C$9.34 C$12.83 C$16.32 67
EV/Revenue C$4.10 C$6.35 C$8.59 53
Asset-Based
NCAV (Graham) C$0.3300 C$0.4500 C$0.6700 54
Growth DCF
Growth DCF C$1.71 C$2.33 C$3.24 79
Rev-Margin DCF C$2.76 C$4.72 C$7.09 71
Economic Profit
Residual Income C$0.8000 C$0.9700 C$1.97 72
ROIC Compounder C$2.62 C$3.14 C$3.61 72
Growth Earnings
Growth-Adj P/E C$1.83 C$2.62 C$3.40 67

Widest divergence: DCF Models (C$3.53) versus Asset-Based (C$0.4500). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 17.2
P/S ratio 0.35 P/E × margin
EPS (TTM) C$0.1500 price ÷ EPS = P/E 17.2
Dividend yield 3.9% payout 66.7%
Net margin 2.1% FY2025
Return on equity 24.2% TTM
More key figures
Profitability
Return on assets (EBIT) 11.5% avg 5y
Operating margin 10.4% TTM
Growth
Revenue (TTM) C$444M TTM
Revenue growth (YoY) −5.0% 3y avg +18.0%
EPS growth (YoY) −11.1%
Balance sheet & cash flow
Free cash flow C$20.8M FY2025
Net debt C$252M FY2025 · ≈ 12.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 43 · Market factors (momentum, volatility) 88

Profitability 58
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 3
Balance sheet, leverage, solvency risk
Investment 37
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 95
Distance to the 52-week high (market factor)
Net Issuance 54
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

DATA Communications Management Corp. provides print and digital solution to simplify complex marketing communication and operations workflows in the United States and Canada. The company offers end-to-end marketing and communication solutions including marketing automation and digital asset management, and full-service commercial print and creative services.

Full company description

DATA Communications Management Corp. provides print and digital solution to simplify complex marketing communication and operations workflows in the United States and Canada. The company offers end-to-end marketing and communication solutions including marketing automation and digital asset management, and full-service commercial print and creative services. It also provides marketing, technology, and communications services such as customer communications management, document processing, data management and analytics, email, direct, and in-store marketing technology, and other creative services. In addition, the company offers hardware and digital solutions comprising digital signage, kiosk, mobile computing, tablets, thermal printers, scanners, RFID, and wayfinding solutions. Further, it provides product sales; warehousing services; freight services; technology-enabled hardware solutions; and marketing and other services. It serves the financial services, retail, telecom, emerging markets, healthcare and wellness, not for profit, energy, hospitality, transportation, lottery, and government 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 based in Brampton, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

DCM.TO reported revenue of C$450M in FY2025 versus C$235M in FY2021, a compound +17.6%/yr. Reported net income was C$9.3M in FY2025, compounding +55.9%/yr from FY2021.

Growth Quality 79/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
C$450M
Latest YoY
−6.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.7%
Avg. revenue growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.6%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+3.0% · in CAD
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share−0.9%
Dividend yield3.9%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y −0.9% vs 10Y −37.4%, picking up
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9.3% (2020) → 7.2% (2025) · falling
Worst earnings drop714% (2013) (loss year, drop beyond 100%) · in CAD
⚠ Revenue per share shrinking 39.4%/yr over ~10Y (margin trend unclear) Structural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Revenue +17.6%/yr
FY21 C$235M
FY22 C$274M
FY23 C$448M
FY24 C$480M
FY25 C$450M
Net income +55.9%/yr
FY21 C$1.6M
FY22 C$14.0M
FY23 −C$15.9M
FY24 C$3.6M
FY25 C$9.3M

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Cite: Fair Value Calculator (2026). "DCM.TO Fair Value". https://www.fairvalue-calculator.com/stock/DCM.TO

Peer Group

Specialty Business Services · 248 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 44 · Below median
Fair Value upside +34% · Above median
Return on equity (TTM) 24% · Top 25%
Return on assets 5% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 10% · Above median
Revenue growth −5% · Bottom 25%
Dividend yield (TTM) 3.9% · Above median
Debt / equity 1.75× · Higher than 75% of peers

Valuation Multiples vs Specialty Business Services median · lower = cheaper

P/E (TTM) 17.2× · Cheaper than median
P/B 2.74× · Pricier than median
P/S (TTM) 0.23× · Cheaper than 75% of peers
P/FCF 4.9× · Pricier than median
EV/EBITDA 4.2× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE79 · sector 23
FUTURE0 · sector 27
PAST97 · sector 36
HEALTH13 · sector 92
DIVIDEND78 · sector 48

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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10 more Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Aug 18, 2026).

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Wolters Kluwer N.V WKL €68.88 €101.27 +47%
Aramark ARMK $59.08 $13.18 −78%

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Frequently asked questions

Is DCM.TO (DCM) overvalued or undervalued?
As of Aug 18, 2026, our model estimates a fair value of C$3.46 versus a price of C$2.58, about +34% upside (undervalued).
What is the fair value of DCM?
Our model-based fair value for DCM.TO is C$3.46 (as of Aug 18, 2026), built from audited fundamentals. The current price: C$2.58.
What is the quality score of DCM?
DCM.TO has a Quality Score of 44/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for DCM.TO (DCM)?
Our model-based price target is the fair value of C$3.46 (as of Aug 18, 2026) from 24 valuation models. Cautious scenario C$2.41, optimistic scenario C$4.32. It is a calculation from audited fundamentals, not an analyst target.
What is the DCM.TO stock forecast for 2026?
Our models put fair value at C$3.46, about +34% upside versus a price of C$2.58 (undervalued). Cautious scenario C$2.41, optimistic scenario C$4.32. The calculation is refreshed regularly with new filings.
What is the revenue of DCM.TO (DCM)?
DCM.TO reported trailing-twelve-month revenue of about C$444M (latest available figure, as of Aug 18, 2026).
What is the net profit margin of DCM?
The net profit margin of DCM.TO is about 2.0%, meaning it keeps roughly 2.0% of revenue as net income. Based on the latest reported figures.
Does DCM.TO pay a dividend?
DCM.TO currently shows a dividend yield of about 3.88% relative to its recent price (as of Aug 18, 2026).
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