DCM is a Canadian-based communications and marketing solutions provider that offers comprehensive online and offline communications and marketing solutions to businesses. Its technology-enabled content and workflow management capabilities solve the complex branding, communications, logistics, and regulatory requirements of Canada’s leading enterprises. Its services include custom loyalty programs, data and content management, location-specific marketing, labels and asset tracking, multimedia campaign management, and workflow management. 2021 FINANCIAL HIGHLIGHTS: (1) Q4/2021 Revenue Slightly Higher Year-over-Year as COVID Impacts Easing. Revenue of $60.9 million in Q4/2021 was below our estimate of $64.2 million, but slightly higher than Q4/2020. Even though some clients deferred expenditures and supply chain issues caused delays, it was the first time since the pandemic started that quarterly revenue improved year-over-year. (2) Corporate Consolidation Helps Maintain Margins. Restructuring charges were $9.7 million in 2021 but could drive $14 million in annual savings. Even with declining revenue year-over-year, Gross Margin in 2021 was 29.5%, up from 28.1% in 2020. Margins continued to benefit from cost-saving initiatives including factory consolidation, operation efficiencies, and revenue mix. (3) “Digital-First” Strategy to Drive Revenue Growth. The Company reported that it is currently targeting 50 clients and the sales pipeline was $10 million. Recent wins include a deployment of DCMFlex™ to a U.S. multi-state cannabis operator. (4) Low Valuation Multiple Compared to Peers. DCM is currently trading at 0.5x 2022 EV/Revenue compared with Printer comps trading at 1.0x EV/Revenue, and well below the Digital Asset Management & Tech-Enabled Workflow providers trading at 2.6x and 4.6x EV/Revenue, respectively. FINANCIAL ANALYSIS & VALUATION: (i) We are maintaining our 2022 Revenue estimate at $246.1 million, our revenue multiple at 0.8x, and our EBITDA multiple at 7.0x. We shifted the model one quarter forward, which positively affected the valuation. (ii) We estimate an equal-weighted price target of $4.00 based on a DCF valuation ($6.49/share), a Revenue Multiple valuation ($3.14/share), and an EBITDA Multiple valuation ($2.70/share). (iii) We are maintaining a Buy rating and increasing the one-year price target to $4.00 from $3.75.