Vecima Networks

VCM.TO

Communication Equipment · Technology

Price

C$12.60

+0.00 (+0.00%)

Market Cap

C$306.4M

Exchange

Toronto Stock Exchange

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Mixed

Stability

Good

Valuation

Data not available

Dividends

Weak

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Share count rising — dilution

+6.9% over 4y

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

Diluted shares outstanding: 22.7M (2021) → 24.3M (2025)

Winston Score History

The full picture

Vecima Networks is a Canadian technology company that makes hardware and software for cable and internet providers. Its main products help companies like Comcast and other large cable operators upgrade their networks so they can deliver faster internet speeds to homes and businesses. Vecima is best known for its video delivery and network access equipment, which sits inside the infrastructure that carries TV and internet signals.

The company earns money by selling equipment and software licenses to cable operators, mostly in North America. With a market cap around $300 million, Vecima is a small player in a competitive industry dominated by larger rivals like Harmonic and Cisco. Its main growth driver is the ongoing industry shift to a technology called Distributed Access Architecture, or DAA, which requires cable companies to replace older equipment — but the company is currently operating at a loss, meaning it needs that upgrade cycle to accelerate before costs outpace revenue.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+1.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-120.8% YoY

YoY Growth Rate

Earnings declining

R&D Spend

C$63M/ year

↑ Rising (+42% vs prior year)

22.0% of revenue

In line with sector average (15%)

Investing heavily in future products and technology

Insider Activity

57.6%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

C$3M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

Vecima Networks is putting 22% of revenue into R&D and that number is rising. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

37.8%

Modest — 37.8% gross margin

Profit after running costs

Operating Margin

1.7%

Thin — 1.7% operating margin

Return on the money invested

ROCE

-4.0%

Weak — -4.0% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-8.6%

Shrinking sales (-8.6% YoY)

Profit growth

EPS YoY

-442.5%

Earnings shrinking (-442.5% YoY)

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

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

17.2%

Converts sales into free cash efficiently (17.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.27

Conservative — low debt load (0.27)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend

Dividend Yield

1.75%

Small dividend — 1.75% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

+0.0%

Dividend flat

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