DCSX (Direct Communication Solutions) Operating Income: $-1.26 Mil (TTM As of Dec. 2025)

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DCSX Direct Communication Solutions Inc DCSX
42 GF Score
Price $1.05
GF Value $1.30
! 6 Warning Signs
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What is Direct Communication Solutions Operating Income?

Direct Communication Solutions DCSX 42 Operating Income is $-1.26 Mil as of Dec. 2025. GuruFocus rates DCSX with a GF Score™ of 42/100 and a GF Value™ of $1.30. The stock has 6 warning signs investors should review.

Direct Communication Solutions's Operating Income for the six months ended in Dec. 2025 was $-1.26 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $-1.26 Mil.

Warning Sign:

Direct Communication Solutions Inc has never been profitable in the past 3 years. It lost money every year.

Operating Margin % is calculated as Operating Income divided by its Revenue. Direct Communication Solutions's Operating Income for the six months ended in Dec. 2025 was $-1.26 Mil. Direct Communication Solutions's Revenue for the six months ended in Dec. 2025 was $8.73 Mil. Therefore, Direct Communication Solutions's Operating Margin % for the quarter that ended in Dec. 2025 was -14.46%.

Warning Sign:

Direct Communication Solutions Inc operating margin has been in a 5-year decline. The average rate of decline per year is -32.7%.

Direct Communication Solutions's 5-Year average Growth Rate for Operating Margin % was -32.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Direct Communication Solutions's annualized ROC % for the quarter that ended in Dec. 2025 was -16.66%. Direct Communication Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 182.75%.

Direct Communication Solutions  (OTCPK:DCSX) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Direct Communication Solutions's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2024 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=-1.263 * ( 1 - 0% )/( (6.519 + 8.646)/ 2 )
=-1.263/7.5825
=-16.66 %

where

Invested Capital(Q: Dec. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2.733 - 1.453 - ( 0.603 - max(0, 7.586 - 2.347+0.603))
=6.519

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1.411 - 2.244 - ( 0.142 - max(0, 10.688 - 1.209+0.142))
=8.646

Note: The Operating Income data used here is one times the annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Direct Communication Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2024  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=0.445/( ( (0.336 + max(-3.654, 0)) + (0.151 + max(-1.901, 0)) )/ 2 )
=0.445/( ( 0.336 + 0.151 )/ 2 )
=0.445/0.2435
=182.75 %

where Working Capital is:

Working Capital(Q: Dec. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.613 + 0.357 + 0.63) - (1.453 + 1.786 + 2.015)
=-3.654

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0.441 + 0.486 + 0.07) - (2.244 + 0.434 + 0.22)
=-1.901

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Direct Communication Solutions's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=-1.263/8.732
=-14.46 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Direct Communication Solutions Operating Income Related Terms

Direct Communication Solutions Operating Income Historical Data

* Premium members only.

The historical data trend for Direct Communication Solutions's Operating Income 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.

Direct Communication Solutions Operating Income Chart

Direct Communication Solutions Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial -1.54 -2.34 -1.34 -2.50 -1.26

Direct Communication Solutions Semi-Annual Data
Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec24 Dec25
Operating Income Get a 7-Day Free Trial -1.54 -2.34 -1.34 -2.50 -1.26
DCSX
42GF Score
Direct Communication Solutions Inc DCSX
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Direct Communication Solutions Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $-1.26 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $-1.26 Mil mean?
Direct Communication Solutions (DCSX) has a Operating Income of $-1.26 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Direct Communication Solutions and its competitors.
Is Direct Communication Solutions' Operating Income too high?
Direct Communication Solutions' current Operating Income is $-1.26 Mil. Overall, Direct Communication Solutions has a GF Score™ of 42/100, reflecting its overall financial health beyond just this single metric.
How does Direct Communication Solutions' Operating Income compare to IBM and ACN?
Direct Communication Solutions' Operating Income of $-1.26 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Software company?
A good Operating Income depends on the Software industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Direct Communication Solutions and its competitors. Direct Communication Solutions's current Operating Income is $-1.26 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Direct Communication Solutions stock overvalued right now?
Direct Communication Solutions (DCSX) has a current Operating Income of $-1.26 Mil. The stock's GF Value™ is $1.30, compared to a current price of $1.05 — trading 19.2% below its estimated fair value. The current Operating Income is $-1.26 Mil. Direct Communication Solutions' overall GF Score™ is 42/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Direct Communication Solutions (DCSX), the current Operating Income is $-1.26 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Direct Communication Solutions (DCSX) Overvalued in 2026?

Based on GuruFocus' analysis, Direct Communication Solutions stock appears to be undervalued. The current stock price of $1.05 is trading 19.2% below its estimated GF Value™ of $1.30.

Key valuation signals for DCSX:

  • Operating Income: $-1.26 Mil
  • GF Value™: $1.30 vs. price of $1.05 (19.2% below fair value)
  • GF Score™: 42/100 with 6 warning signs

No single metric tells the full story. See the DCSX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Direct Communication Solutions Business Description

Other Exchanges 7QU0:GermanyDCSI:Canada
Address 11021 Via Frontera, Suite C, San Diego, CA, USA, 92127
Direct Communication Solutions Inc is a provider of solutions for the Internet of Things (IoT), including monitoring-as-a-service (MaaS) solutions for the telematics market. The company's product portfolio includes GPS devices, modems, embedded modules, routers, and mobile tracking machine-to-machine (M2M) devices. Additionally, it provides communications and applications software and cloud services. The company's portfolio of SaaS solutions mainly includes MiFleet, which provides fleet and vehicle SaaS telematics; MiSensors, which provides easy M2M device management and service enablement for wireless sensors; and MiFailover, which provides high-speed wireless internet failover. Geographically, the company generates maximum revenue from the USA, and the rest from Canada and other regions.
42GF Score

Get the complete analysis for DCSX

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$1.05
Price
$1.30
GF Value