SANGOMA TECHNOLOGIES CORP (STC.CA) Stock Fundamental Analysis
TSX:STC - Toronto Stock Exchange - CA80100R4089 - Common Stock - Currency: CAD
STC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 12 industry peers in the Communications Equipment industry. There are concerns on the financial health of STC while its profitability can be described as average. While showing a medium growth rate, STC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year STC has reported negative net income.
STC had a positive operating cash flow in the past year.
In multiple years STC reported negative net income over the last 5 years.
Each year in the past 5 years STC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of STC (-1.92%) is better than 66.67% of its industry peers.
The Return On Equity of STC (-2.71%) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.92% | ||
| ROE | -2.71% | ||
| ROIC | N/A |
ROA(3y)-10.31%
ROA(5y)-5.73%
ROE(3y)-17.31%
ROE(5y)-9.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of STC (68.63%) is better than 91.67% of its industry peers.
In the last couple of years the Gross Margin of STC has grown nicely.
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 | 68.63% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.9%
GM growth 5Y2.76%
2. Health
2.1 Basic Checks
STC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for STC has been increased compared to 1 year ago.
Compared to 5 years ago, STC has more shares outstanding
Compared to 1 year ago, STC has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.13, we must say that STC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of STC (1.13) is comparable to the rest of the industry.
STC has a debt to FCF ratio of 1.71. This is a very positive value and a sign of high solvency as it would only need 1.71 years to pay back of all of its debts.
STC has a better Debt to FCF ratio (1.71) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that STC is not too dependend on debt financing.
STC's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. STC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 1.13 |
ROIC/WACCN/A
WACC7.99%
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 has a worse Current ratio (0.87) than 75.00% 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.
The Quick ratio of STC (0.69) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
STC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.50%, which is quite good.
The Revenue has decreased by -4.71% in the past year.
STC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.46% yearly.
EPS 1Y (TTM)12.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-4.71%
Revenue growth 3Y23.46%
Revenue growth 5Y24.46%
Sales Q2Q%-4.88%
3.2 Future
The Earnings Per Share is expected to grow by 35.53% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.74% on average over the next years.
EPS Next Y33.96%
EPS Next 2Y35.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.26%
Revenue Next 2Y-0.74%
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for STC. In the last year negative earnings were reported.
Also next year STC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| 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 cheaply inside the industry as 100.00% of the companies are valued more expensively.
100.00% of the companies in the same industry are more expensive than STC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.07 | ||
| EV/EBITDA | 5.44 |
4.3 Compensation for Growth
A more expensive valuation may be justified as STC's earnings are expected to grow with 35.53% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y35.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STC (5/30/2025, 7:00:00 PM)
7.62
-0.3 (-3.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners35.22%
Inst Owner ChangeN/A
Ins Owners26.88%
Ins Owner ChangeN/A
Market Cap255.35M
Analysts80
Price Target11.54 (51.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-114.52%
Min EPS beat(2)-197.03%
Max EPS beat(2)-32.01%
EPS beat(4)0
Avg EPS beat(4)-79.27%
Min EPS beat(4)-197.03%
Max EPS beat(4)-8.01%
EPS beat(8)2
Avg EPS beat(8)-71.23%
EPS beat(12)4
Avg EPS beat(12)-370.85%
EPS beat(16)5
Avg EPS beat(16)-310.58%
Revenue beat(2)0
Avg Revenue beat(2)-5.04%
Min Revenue beat(2)-7.66%
Max Revenue beat(2)-2.42%
Revenue beat(4)0
Avg Revenue beat(4)-3.65%
Min Revenue beat(4)-7.66%
Max Revenue beat(4)-1.26%
Revenue beat(8)2
Avg Revenue beat(8)-2.24%
Revenue beat(12)3
Avg Revenue beat(12)-2.11%
Revenue beat(16)7
Avg Revenue beat(16)0.99%
PT rev (1m)-6.22%
PT rev (3m)-6.22%
EPS NQ rev (1m)50%
EPS NQ rev (3m)25%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-6.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.78 | ||
| P/FCF | 5.07 | ||
| P/OCF | 3.98 | ||
| P/B | 0.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.44 |
EPS(TTM)-0.29
EYN/A
EPS(NY)-0.06
Fwd EYN/A
FCF(TTM)1.5
FCFY19.74%
OCF(TTM)1.91
OCFY25.1%
SpS9.83
BVpS10.53
TBVpS-1.59
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.92% | ||
| ROE | -2.71% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 68.63% | ||
| FCFM | 15.3% |
ROA(3y)-10.31%
ROA(5y)-5.73%
ROE(3y)-17.31%
ROE(5y)-9.32%
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
ROICexcg growth 3YN/A
ROICexcg 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 3Y0.9%
GM growth 5Y2.76%
F-Score5
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.71 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 21.7% | ||
| Cap/Sales | 4.16% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 106.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.13 |
F-Score5
WACC7.99%
ROIC/WACCN/A
Cap/Depr(3y)20.7%
Cap/Depr(5y)19.74%
Cap/Sales(3y)3.72%
Cap/Sales(5y)3.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y33.96%
EPS Next 2Y35.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.71%
Revenue growth 3Y23.46%
Revenue growth 5Y24.46%
Sales Q2Q%-4.88%
Revenue Next Year-4.26%
Revenue Next 2Y-0.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.36%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year4302.09%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y156.57%
FCF growth 3Y28.15%
FCF growth 5Y37.43%
OCF growth 1Y84.13%
OCF growth 3Y33.68%
OCF growth 5Y38.57%