Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Data Communications Management Corp T.DCM

Alternate Symbol(s):  DCMDF

DATA Communications Management Corp. (DCM) is a Canada-based marketing and business communications company that helps companies simplify the ways they communicate and operate. It provides solutions, such as workflow management, digital asset management, personalized video, location-specific marketing, multi-channel marketing workflow management, print and communications management, and marketing, strategy and creative services. DCM serves brands in vertical markets including financial services, retail, emerging markets, healthcare and wellness, Not-for-Profit, energy, hospitality, transportation, lottery, government, other regulated industries and the public sector. Its DCMFlex marketing workflow technology enables marketers to create, edit, track and execute digital and print assets ranging from email campaigns and welcome kits to retail collateral and HR training material.


TSX:DCM - Post by User

Post by knicksmanon Feb 03, 2017 8:12am
194 Views
Post# 25793815

Buying Opportunity

Buying OpportunityI crunched some numbers. 

DCM announced two acquisition for total proceeds of $26 million (includes assumed debt). I assume the company paid purchase multiples of roughly to 4.0x EV/EBITDA, and as such, I expect the acquisitions to add at least $6 million in EBITDA in 2017. 

The company also made/completed reductions to its cost structure in excess of $6 million (I do not assume all of it flows to the bottomline). 

For 2017, I forecast revenues of $305 million and EBITDA of $27 million. I'm counting $13 million of FCF after $4 million of capex and $6 million of paid provisions.

I see leverage peaking in Q1 at $60 million and decline to $50 million by the end of the year. The company also has room to repay the convertibles with its line of credit. 

At 4.0x EV/EBITDA, which I think is a conservative value, the shares could be valued at $4.50/share by the end of 2017. This is a great buying opportunity. We could see additional M&A in the year as well as continued improvements in the company's cost structure. 
Bullboard Posts