SANGOMA TECHNOLOGIES CORP (STC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STC - CA80100R4089 - Common Stock
6.94 CAD
+0.05 (+0.73%)
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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
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.
In the past 5 years STC reported 4 times negative net income.
STC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of STC (-1.61%) is better than 69.23% of its industry peers.
The Return On Equity of STC (-2.16%) is better than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.61% | ||
| ROE | -2.16% | ||
| 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
STC has a better Gross Margin (69.22%) 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.
The Profit Margin and Operating Margin are not available for STC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 69.22% |
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. Health
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.
The number of shares outstanding for STC has been increased compared to 5 years ago.
The debt/assets ratio for STC has been reduced compared to a year ago.
2.2 Solvency
STC has an Altman-Z score of 1.19. This is a bad value and indicates that STC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of STC (1.19) is comparable to the rest of the industry.
STC has a debt to FCF ratio of 1.93. This is a very positive value and a sign of high solvency as it would only need 1.93 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.93, STC belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
STC has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.11, STC is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 1.19 |
ROIC/WACCN/A
WACC8.16%
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.
With a Current ratio value of 0.87, STC is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
A Quick Ratio of 0.72 indicates that STC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, STC is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.00% over the past year.
STC shows a decrease in Revenue. In the last year, the revenue decreased by -6.97%.
The Revenue has been growing by 19.31% on average over the past years. This is quite good.
EPS 1Y (TTM)36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-6.97%
Revenue growth 3Y1.79%
Revenue growth 5Y19.31%
Sales Q2Q%-15.51%
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 53.23% on average per year.
The Revenue is expected to decrease by -4.32% on average over the next years.
EPS Next Y-23.44%
EPS Next 2Y53.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-12.47%
Revenue Next 2Y-4.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for STC. In the last year negative earnings were reported.
STC is valuated quite expensively with a Price/Forward Earnings ratio of 97.13.
Based on the Price/Forward Earnings ratio, STC is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of STC to the average of the S&P500 Index (23.23), we can say STC is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 97.13 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than STC, based on the Enterprise Value to EBITDA ratio.
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 | 6.42 | ||
| EV/EBITDA | 4.77 |
4.3 Compensation for Growth
STC's earnings are expected to grow with 53.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y53.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for STC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:STC (1/2/2026, 7:00:00 PM)
6.94
+0.05 (+0.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners35.19%
Inst Owner ChangeN/A
Ins Owners27.37%
Ins Owner ChangeN/A
Market Cap229.99M
Revenue(TTM)227.36M
Net Income(TTM)-5.44M
Analysts82
Price Target11.22 (61.67%)
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)1
Avg EPS beat(2)285.64%
Min EPS beat(2)-23.76%
Max EPS beat(2)595.05%
EPS beat(4)1
Avg EPS beat(4)85.56%
Min EPS beat(4)-197.03%
Max EPS beat(4)595.05%
EPS beat(8)2
Avg EPS beat(8)30.1%
EPS beat(12)4
Avg EPS beat(12)5.37%
EPS beat(16)6
Avg EPS beat(16)-259.19%
Revenue beat(2)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-0.46%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-2.55%
Min Revenue beat(4)-7.66%
Max Revenue beat(4)0.34%
Revenue beat(8)2
Avg Revenue beat(8)-1.95%
Revenue beat(12)3
Avg Revenue beat(12)-2.49%
Revenue beat(16)6
Avg Revenue beat(16)-0.19%
PT rev (1m)1.85%
PT rev (3m)2.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-193.33%
EPS NY rev (1m)3.51%
EPS NY rev (3m)-587.4%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-3.38%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 97.13 | ||
| P/S | 0.74 | ||
| P/FCF | 6.42 | ||
| P/OCF | 4.86 | ||
| P/B | 0.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.77 |
EPS(TTM)-0.22
EYN/A
EPS(NY)0.07
Fwd EY1.03%
FCF(TTM)1.08
FCFY15.58%
OCF(TTM)1.43
OCFY20.6%
SpS9.39
BVpS10.39
TBVpS-1.11
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.61% | ||
| ROE | -2.16% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 69.22% | ||
| FCFM | 11.51% |
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-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.93 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 18.9% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 81.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.19 |
F-Score5
WACC8.16%
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)36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-16.67%
EPS Next Y-23.44%
EPS Next 2Y53.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.97%
Revenue growth 3Y1.79%
Revenue growth 5Y19.31%
Sales Q2Q%-15.51%
Revenue Next Year-12.47%
Revenue Next 2Y-4.32%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-112.34%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2299.66%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y35.51%
FCF growth 3Y27.36%
FCF growth 5Y36.51%
OCF growth 1Y12.7%
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 4 / 10 to SANGOMA TECHNOLOGIES CORP (STC.CA). This can be considered as Fairly Valued.
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 -23.44% in the next year.