Vecima Networks (TSX:VCM) Financial Strength: 4 (As of Mar. 2026) — 43% Below Median

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TSX:VCM Vecima Networks Inc TSX:VCM
76 GF Score
Price C$12.99
GF Value C$15.98
Valuation Modestly Undervalued
! 9 Warning Signs
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What is Vecima Networks Financial Strength?

Vecima Networks TSX:VCM 76 Financial Strength is 4 as of Mar. 2026, which is 43% below its 10-year median of 7.00. GuruFocus rates TSX:VCM with a GF Score™ of 76/100 and a GF Value™ of C$15.98 (Modestly Undervalued). The stock has 9 warning signs investors should review.

Vecima Networks has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Vecima Networks's Interest Coverage for the quarter that ended in Mar. 2026 was 0.65. Vecima Networks's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.24. As of today, Vecima Networks's Altman Z-Score is 3.09.


Vecima Networks  (TSX:VCM) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Vecima Networks has the Financial Strength Rank of 4.


Vecima Networks Financial Strength Related Terms


TSX:VCM vs CSCO, MSI, HPE: Financial Strength Comparison

For the Communication Equipment subindustry, Vecima Networks's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Vecima Networks Financial Strength vs Hardware Industry

For the Hardware industry and Technology sector, Vecima Networks's Financial Strength distribution charts can be found below:

* The bar in red indicates where Vecima Networks's Financial Strength falls into.


TSX:VCM
76GF Score
Vecima Networks Inc TSX:VCM
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Vecima Networks Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Vecima Networks's Interest Expense for the months ended in Mar. 2026 was C$-1.8 Mil. Its Operating Income for the months ended in Mar. 2026 was C$1.2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was C$24.3 Mil.

Vecima Networks's Interest Coverage for the quarter that ended in Mar. 2026 is

Interest Coverage=-1*Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*1.161/-1.773
=0.65

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Vecima Networks's Debt to Revenue Ratio for the quarter that ended in Mar. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(38.432 + 24.283) / 259.328
=0.24

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Vecima Networks has a Z-score of 3.09, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.09 is strong.

* 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 Financial Strength →
What does a Financial Strength of 4 mean?
Vecima Networks (TSX:VCM) has a Financial Strength of 4 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Vecima Networks and its competitors. This is 43% below median its historical median of 7.00. Over the past decade, Vecima Networks' Financial Strength has ranged from 4.00 to 8.00.
Is Vecima Networks' Financial Strength too high?
Vecima Networks' current Financial Strength of 4 is 43% below median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 8.00. Overall, Vecima Networks has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vecima Networks' Financial Strength compare to CSCO and MSI?
Vecima Networks' Financial Strength of 4 can be compared against companies in the Hardware industry. Historically, Vecima Networks' own Financial Strength has ranged from 4.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Hardware company?
A good Financial Strength depends on the Hardware industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Vecima Networks and its competitors. Vecima Networks's current Financial Strength is 4, which is 43% below median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vecima Networks stock overvalued right now?
Based on GuruFocus' analysis, Vecima Networks (TSX:VCM) is currently considered Modestly Undervalued. The stock's GF Value™ is C$15.98, compared to a current price of C$12.99 — trading 18.7% below its estimated fair value. The current Financial Strength is 4, which is 43% below median its 10-year median of 7.00. Vecima Networks' overall GF Score™ is 76/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Vecima Networks (TSX:VCM), the current Financial Strength is 4 as of Mar. 2026. 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 Vecima Networks (TSX:VCM) Overvalued in 2026?

Based on GuruFocus' analysis, Vecima Networks stock appears to be undervalued. The current stock price of C$12.99 is trading 18.7% below its estimated GF Value™ of C$15.98. GuruFocus considers Vecima Networks to be Modestly Undervalued.

Key valuation signals for TSX:VCM:

  • Financial Strength: 4 (43% below median its 10-year median of 7.00)
  • GF Value™: C$15.98 vs. price of C$12.99 (18.7% below fair value)
  • GF Score™: 76/100 with 9 warning signs

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


Vecima Networks Business Description

Other Exchanges VNWTF:USA
Address 201-771 Vanalman Avenue, Victoria, BC, CAN, V8Z 3B8
Vecima Networks Inc is a Canadian company that develops integrated hardware and software solutions for broadband access, content delivery, and telematics. It operates through three business segments: Video and Broadband Solutions, Content Delivery and Storage, and Telematics. The majority revenue generation segment, Video and Broadband Solutions segment, provides platforms that support broadband and video services over cable and fiber networks. The Content Delivery and Storage segment offers software and solutions for storing, transforming, and delivering video content. The Telematics segment provides fleet management and asset tracking solutions for mobile and fixed assets. The company has operations with offices and manufacturing facilities in several countries.
76GF Score

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

C$12.99
Price
C$15.98
GF Value