ranked in the 90th percentile overall when analyzed for quality, safety, and sentiment, reported Sadif Investment Analytics in a May 17 summary due diligence report.
"Data Communications is a high-quality company," Sadif wrote. "We believe [it] to be a good long-term investment that is likely to deliver long-term returns."
Likely To Outperform
This business-to-business provider of marketing and business communication solutions scored 92 out of 100 on Sadif's Summary StockMarks' ratings. This is calculated by and reflects how Data Communications stacked up against the entire population of 2,248 Canada-listed companies rated today on a dozen metrics at market close on May 17, 2023.
Sadif rates the Canadian firm company Good and recommends it as a Buy with a target price of CA$5.37 per share. This reflects a potential 86% gain for investors, given the current share price is about CA$2.89.
"The likelihood to outperform the market, as measured by the Outperformance StockMark, is well above average with a rating of 89/100," wrote Sadif.
In its report, Sadif pointed out the numerous high-rated factors about Data Communications. Business overall is strong. Financials are fair, resulting from strong cash generation efficiency, attractive performance, and good earnings quality. The company has low-leverage good asset conversion. Management is efficient and showed improvement during the most recent quarter.
Data Communications is considered safe overall. As for current market sentiment about the firm, it is bullish with a neutral outlook. The company's price attractiveness is high, and market multiples and estimates are positive.
Room for Improvement
On the negative side, Sadif noted Data Communications' revenue stream is poor, and its financial situation is risky. Operational risk is high.
The company's business forecast is negative "based on a deteriorating trend in our estimates," Sadif wrote. Technical indicators are unfavorable. Specifically, stock prices in the advertising and marketing sector generally are declining.
All ratings considered, Sadif concluded that "Data Communications Management Corp. has a bright prospect."
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1) Data Communications Management Corp. is a billboard sponsor of Streetwise Reports and has paid SWR a sponsorship fee between US$3,000 and US$5,000.
2) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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Disclosures for Sadif Investment Analytics, Data Communications Management Corp., May 17, 2023
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