SANGOMA TECHNOLOGIES CORP (STC.CA) Fundamental Analysis & Valuation
TSX:STC • CA80100R4089
6.16 CAD
-0.17 (-2.69%)
Last: Mar 9, 2026, 07:00 PM
This STC.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, STC scores 3 out of 10 in our fundamental rating. STC was compared to 13 industry peers in the Communications Equipment industry. While STC seems to be doing ok healthwise, there are quite some concerns on its profitability. STC is valued expensive and it does not seem to be growing.
1. STC.CA Profitability Analysis
1.1 Basic Checks
- In the past year STC has reported negative net income.
- In the past year STC had a positive cash flow from operations.
- STC had negative earnings in 4 of the past 5 years.
- In the past 5 years STC always reported a positive cash flow from operatings.
1.2 Ratios
- STC has a better Return On Assets (-1.71%) than 69.23% of its industry peers.
- With a decent Return On Equity value of -2.22%, STC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -2.22% | ||
| ROIC | N/A |
ROA(3y)-3.39%
ROA(5y)-6.47%
ROE(3y)-5.4%
ROE(5y)-10.77%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Gross Margin of STC (70.61%) is better than 92.31% of its industry peers.
- In the last couple of years the Gross Margin of STC has remained more or less at the same level.
- STC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.61% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.76%
GM growth 5Y1.11%
2. STC.CA Health Analysis
2.1 Basic Checks
- STC does not have a ROIC to compare to the WACC, probably because it is not profitable.
- STC has less shares outstanding than it did 1 year ago.
- STC has more shares outstanding than it did 5 years ago.
- STC has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.17, we must say that STC is in the distress zone and has some risk of bankruptcy.
- STC's Altman-Z score of 1.17 is in line compared to the rest of the industry. STC outperforms 53.85% of its industry peers.
- STC has a debt to FCF ratio of 1.85. This is a very positive value and a sign of high solvency as it would only need 1.85 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 1.85, STC is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- A Debt/Equity ratio of 0.09 indicates that STC is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.09, STC perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.85 | ||
| Altman-Z | 1.17 |
ROIC/WACCN/A
WACC8.56%
2.3 Liquidity
- STC has a Current Ratio of 0.87. This is a bad value and indicates that STC is not financially healthy enough and could expect problems in meeting its short term obligations.
- STC's Current ratio of 0.87 is on the low side compared to the rest of the industry. STC is outperformed by 61.54% of its industry peers.
- STC has a Quick Ratio of 0.87. This is a bad value and indicates that STC is not financially healthy enough and could expect problems in meeting its short term obligations.
- STC's Quick ratio of 0.71 is in line compared to the rest of the industry. STC outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.71 |
3. STC.CA Growth Analysis
3.1 Past
- STC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.81%, which is quite impressive.
- The Revenue has decreased by -8.93% in the past year.
- Measured over the past years, STC shows a quite strong growth in Revenue. The Revenue has been growing by 19.31% on average per year.
EPS 1Y (TTM)23.81%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-8.93%
Revenue growth 3Y1.79%
Revenue growth 5Y19.31%
Sales Q2Q%-12.96%
3.2 Future
- Based on estimates for the next years, STC will show a very strong growth in Earnings Per Share. The EPS will grow by 35.09% on average per year.
- Based on estimates for the next years, STC will show a decrease in Revenue. The Revenue will decrease by -4.00% on average per year.
EPS Next Y-29.28%
EPS Next 2Y35.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-12.22%
Revenue Next 2Y-4%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. STC.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for STC. In the last year negative earnings were reported.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for STC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, STC is valued cheaper than 100.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of STC indicates a rather cheap valuation: STC is cheaper than 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.16 | ||
| EV/EBITDA | 4.33 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as STC's earnings are expected to grow with 35.09% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y35.09%
EPS Next 3YN/A
5. STC.CA Dividend Analysis
5.1 Amount
- STC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
STC.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:STC (3/9/2026, 7:00:00 PM)
6.16
-0.17 (-2.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-04 2026-02-04/amc
Earnings (Next)05-06 2026-05-06
Inst Owners33.08%
Inst Owner ChangeN/A
Ins Owners27.37%
Ins Owner ChangeN/A
Market Cap204.08M
Revenue(TTM)219.70M
Net Income(TTM)-5.55M
Analysts82
Price Target10.88 (76.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-53.27%
Min EPS beat(2)-82.79%
Max EPS beat(2)-23.76%
EPS beat(4)1
Avg EPS beat(4)114.12%
Min EPS beat(4)-82.79%
Max EPS beat(4)595.05%
EPS beat(8)2
Avg EPS beat(8)24.93%
EPS beat(12)4
Avg EPS beat(12)-1.39%
EPS beat(16)5
Avg EPS beat(16)-265.1%
Revenue beat(2)0
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-0.46%
Max Revenue beat(2)-0.42%
Revenue beat(4)1
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-2.42%
Max Revenue beat(4)0.34%
Revenue beat(8)1
Avg Revenue beat(8)-2.01%
Revenue beat(12)3
Avg Revenue beat(12)-1.68%
Revenue beat(16)5
Avg Revenue beat(16)-0.76%
PT rev (1m)-3.03%
PT rev (3m)-3.03%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)-700%
EPS NY rev (1m)-6.67%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.68 | ||
| P/FCF | 6.16 | ||
| P/OCF | 4.58 | ||
| P/B | 0.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.33 |
EPS(TTM)-0.22
EYN/A
EPS(NY)-0.04
Fwd EYN/A
FCF(TTM)1
FCFY16.24%
OCF(TTM)1.34
OCFY21.82%
SpS9
BVpS10.24
TBVpS-0.83
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.71% | ||
| ROE | -2.22% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 70.61% | ||
| FCFM | 11.11% |
ROA(3y)-3.39%
ROA(5y)-6.47%
ROE(3y)-5.4%
ROE(5y)-10.77%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.76%
GM growth 5Y1.11%
F-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.85 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 19.07% | ||
| Cap/Sales | 3.82% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 79.63% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.17 |
F-Score7
WACC8.56%
ROIC/WACCN/A
Cap/Depr(3y)22.92%
Cap/Depr(5y)19.53%
Cap/Sales(3y)4.2%
Cap/Sales(5y)3.39%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)23.81%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-29.28%
EPS Next 2Y35.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-8.93%
Revenue growth 3Y1.79%
Revenue growth 5Y19.31%
Sales Q2Q%-12.96%
Revenue Next Year-12.22%
Revenue Next 2Y-4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-131.04%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2230.38%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1.25%
FCF growth 3Y27.36%
FCF growth 5Y36.51%
OCF growth 1Y-5.99%
OCF growth 3Y25.66%
OCF growth 5Y36.31%
SANGOMA TECHNOLOGIES CORP / STC.CA FAQ
What is the ChartMill fundamental rating of SANGOMA TECHNOLOGIES CORP (STC.CA) stock?
ChartMill assigns a fundamental rating of 3 / 10 to STC.CA.
What is the valuation status for STC stock?
ChartMill assigns a valuation rating of 3 / 10 to SANGOMA TECHNOLOGIES CORP (STC.CA). This can be considered as Overvalued.
Can you provide the profitability details for SANGOMA TECHNOLOGIES CORP?
SANGOMA TECHNOLOGIES CORP (STC.CA) has a profitability rating of 3 / 10.
What is the financial health of SANGOMA TECHNOLOGIES CORP (STC.CA) stock?
The financial health rating of SANGOMA TECHNOLOGIES CORP (STC.CA) is 4 / 10.
What is the expected EPS growth for SANGOMA TECHNOLOGIES CORP (STC.CA) stock?
The Earnings per Share (EPS) of SANGOMA TECHNOLOGIES CORP (STC.CA) is expected to decline by -29.28% in the next year.