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DATA Communications Management

DCM.TO
50
Specialty Business Services · Industrials
Price
C$2.80
+0.02 (+0.72%)
Market Cap
C$157.4M
Exchange
Toronto Stock Exchange
Winston Score
50
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Weak
Cash Flow
Strong
Stability
Mixed
Valuation
Good
Dividends
Mixed

Share count rising — dilution

+23.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 46.1M (2021) → 56.8M (2025)

Winston Score History

The full picture

DATA Communications Management Corp. (DCM) helps businesses manage how they communicate with their customers. The company designs, prints, and distributes marketing materials, regulatory documents, and branded content for large organizations. Its main customers are banks, insurance companies, retailers, and healthcare providers across Canada.

DCM makes money by charging clients for printing services, data-driven marketing programs, and document management solutions. It operates almost entirely in Canada and generates roughly $600 million in annual revenue, making it one of the larger specialty print and communications firms in the country. Its competitive edge comes from long-term contracts with large regulated industries that need reliable, compliant document production. The main risk is secular decline in physical print demand, as more businesses shift communications to digital channels — DCM has been investing in digital marketing services to offset this pressure, but the transition is ongoing.

Score breakdown

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Quality

Profit per sale
Gross Margin
25.4%
Modest — 25.4% gross margin
Profit after running costs
Operating Margin
6.7%
Modest — 6.7% operating margin
Return on the money invested
ROCE
25.0%
Exceptional — 25.0% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
-4.6%
Shrinking sales (-4.6% YoY)
Profit growth
EPS YoY
-36.7%
Earnings shrinking (-36.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
974%
Turns 974% of profit into real cash
Spare cash per sale
FCF Margin
8.6%
Modest free cash flow (8.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
1.75
Elevated debt (1.75)
Covers its interest
Interest Cover
1.60x
Dangerous — barely covers interest (1.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
35.7x
Pricey — P/E 35.7

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+20.8
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (35.7 → 14.9)

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Dividends

Dividend
Dividend Yield
3.60%
Moderate income — 3.60% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
-63.6%
Dividend cut (-63.6% YoY) — warning sign

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