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DATA Communications Management (TSX:DCM) Piotroski F-Score : 4 (As of May. 11, 2024)


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What is DATA Communications Management Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

DATA Communications Management has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for DATA Communications Management's Piotroski F-Score or its related term are showing as below:

TSX:DCM' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 8
Current: 4

During the past 13 years, the highest Piotroski F-Score of DATA Communications Management was 8. The lowest was 3. And the median was 6.


DATA Communications Management Piotroski F-Score Historical Data

The historical data trend for DATA Communications Management's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

DATA Communications Management Piotroski F-Score Chart

DATA Communications Management Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 6.00 6.00 8.00 4.00

DATA Communications Management Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 9.00 6.00 4.00 4.00

Competitive Comparison of DATA Communications Management's Piotroski F-Score

For the Specialty Business Services subindustry, DATA Communications Management's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


DATA Communications Management's Piotroski F-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, DATA Communications Management's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where DATA Communications Management's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was -2.431 + -2.879 + -4.185 + -6.358 = C$-15.9 Mil.
Cash Flow from Operations was 6.333 + 8.284 + 7.986 + 10.2 = C$32.8 Mil.
Revenue was 76.077 + 118.963 + 122.721 + 129.964 = C$447.7 Mil.
Gross Profit was 23.635 + 32.037 + 30.341 + 32.76 = C$118.8 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(149.481 + 148.15 + 363.538 + 424.372 + 418.754) / 5 = C$300.859 Mil.
Total Assets at the begining of this year (Dec22) was C$149.5 Mil.
Long-Term Debt & Capital Lease Obligation was C$238.9 Mil.
Total Current Assets was C$181.1 Mil.
Total Current Liabilities was C$116.5 Mil.
Net Income was 3.713 + 3.757 + 2.816 + 3.68 = C$14.0 Mil.

Revenue was 69.257 + 68.103 + 63.399 + 73.045 = C$273.8 Mil.
Gross Profit was 20.324 + 20.442 + 19.904 + 23.554 = C$84.2 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(140.084 + 142.311 + 146.87 + 146.876 + 149.481) / 5 = C$145.1244 Mil.
Total Assets at the begining of last year (Dec21) was C$140.1 Mil.
Long-Term Debt & Capital Lease Obligation was C$48.4 Mil.
Total Current Assets was C$82.1 Mil.
Total Current Liabilities was C$69.5 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

DATA Communications Management's current Net Income (TTM) was -15.9. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

DATA Communications Management's current Cash Flow from Operations (TTM) was 32.8. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=-15.853/149.481
=-0.10605361

ROA (Last Year)=Net Income/Total Assets (Dec21)
=13.966/140.084
=0.09969732

DATA Communications Management's return on assets of this year was -0.10605361. DATA Communications Management's return on assets of last year was 0.09969732. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

DATA Communications Management's current Net Income (TTM) was -15.9. DATA Communications Management's current Cash Flow from Operations (TTM) was 32.8. ==> 32.8 > -15.9 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=238.911/300.859
=0.79409624

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=48.391/145.1244
=0.33344496

DATA Communications Management's gearing of this year was 0.79409624. DATA Communications Management's gearing of last year was 0.33344496. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=181.051/116.531
=1.55367241

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=82.057/69.479
=1.18103312

DATA Communications Management's current ratio of this year was 1.55367241. DATA Communications Management's current ratio of last year was 1.18103312. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

DATA Communications Management's number of shares in issue this year was 55.069. DATA Communications Management's number of shares in issue last year was 46.74. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=118.773/447.725
=0.26528114

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=84.224/273.804
=0.3076069

DATA Communications Management's gross margin of this year was 0.26528114. DATA Communications Management's gross margin of last year was 0.3076069. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=447.725/149.481
=2.99519671

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=273.804/140.084
=1.95457012

DATA Communications Management's asset turnover of this year was 2.99519671. DATA Communications Management's asset turnover of last year was 1.95457012. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+1+0+1+0+1+0+0+1
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

DATA Communications Management has an F-score of 4 indicating the company's financial situation is typical for a stable company.

DATA Communications Management  (TSX:DCM) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


DATA Communications Management Piotroski F-Score Related Terms

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DATA Communications Management (TSX:DCM) Business Description

Traded in Other Exchanges
Address
9195 Torbram Road, Brampton, ON, CAN, L6S 6H2
DATA Communications Management Corp is a communication solutions partner that adds value for companies across North America by creating connections with their customers. The company serves many brands in the markets including financial services, retail, healthcare, energy, other regulated industries, and the public sector. It generates the majority of its revenue from its product sale. It purchases a product from third-party vendors and resells that to its customers.
Executives
Gregory James Cochrane Director
J. R. Kingsley Ward Director

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