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. is a Canadian tech-enabled provider of print and digital solutions that help simplify complex marketing communications and operations workflow. The Company is engaged in delivering individualized services to its clients that simplify their communications, including customized printing, highly personalized marketing communications, campaign management, digital signage and digital asset management. The Company’s solutions include DCM Digital, Print & Communications Management, Marketing and Technology & Innovation. Its DCM Digital solutions include customer communications management, digital asset management, personalized video, location-specific marketing, multichannel marketing workflow management, and digital signage. It serves brands in various vertical markets, including financial services, retail, emerging markets, healthcare and wellness, not-for-profit, energy, hospitality, lottery, government, and others.


TSX:DCM - Post by User

Comment by Torontojayon Jul 30, 2021 6:31am
183 Views
Post# 33630914

RE:RE:RE:Supremex Vs DCM

RE:RE:RE:Supremex Vs DCM

nozzpack wrote: Lets look at Bezostothemoon a bit further.

Its provenance is from Kellam's short video, within which is provided Trailing valuations for each of DCM's 3 divisions.........

https://www.youtube.com/watch?v=DymO4Ec3w28&t=1s

T
hese divisions and their valuations..directly from Bezos post....based on trailing Ebitda and EV mutiples which I accept at will.

So we have..

Conventional Print.................................$2.80 per share
DCM Flex...............................................$5.00 per share
ASMBL ( DAM ).....................................$3.75 per share

One further step is needed and that is to weight those by their current contributory revenues which are 65% for Print, 32 % for FLEX and 3% for DAM.

Applying these weighting factors, we can now assemble the disaggregated divisional valuations as follows..

Print.................................................. $1.82 per share
FLEX........................................... .....$1.60 per share
Dam.................................................. $1.03 per share

Weighted Trailing EV Valuation.........$ 4.45 per share.


From this we remove $41 million in debt ( rounded to $1 per share ), and we have a trailing market cap valuation per share at peer multiples of about  $3.50 per share.

This is a much better valuation as it disaggregates, and then weights, the contributions of the 3 operating divisions to the composite valuation, all of which have different  valuation multiples.

You can quibble about some of these parameter inputs, but cannot avoid the clear observation that, relative to its peers, DCM is grossly undervalued on its trailing 12 month financial metrics.

This is the correct calculation. 

For 2020 they achieved sales in print, flex and Dam of $178.6m, $78.6m and $3.4m respectively. The industry averages for these segments in order using EV to sales  are 1.1,1.8 and 7.9. The following numbers are expressed in millions. 


 EV = $178*1.1+ $78.6*1.8 + $3.4*7.9 = $195.91 + 141.48 + 26.86 = $364.25 

We have net debt of $37.5 m as of March 31 
Provisions and pensions of $9.3 m 
capital lease of $ 45.2 and a fully diluted share count of 50m shares. Using the aforementioned numbers I get an approximate market cap of $364.25 - $37.5 - $9.3 - $45.2= $272.25 or a price per share of ~ $5.45 

This compares favourably to the current share price of $1.33 




 

<< Previous
Bullboard Posts
Next >>