SANGOMA TECHNOLOGIES CORP (STC.CA) Stock Fundamental Analysis
Canada - TSX:STC - CA80100R4089 - Common Stock
7.43 CAD
+0.09 (+1.23%)
Taking everything into account, STC scores 3 out of 10 in our fundamental rating. STC was compared to 12 industry peers in the Communications Equipment industry. The financial health of STC is average, but there are quite some concerns on its profitability. STC is valued expensive and it does not seem to be growing.
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.
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 Return On Assets of -1.45%. This is in the better half of the industry: STC outperforms 66.67% of its industry peers.
STC's Return On Equity of -1.97% is fine compared to the rest of the industry. STC outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.45% | ||
| ROE | -1.97% | ||
| 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
With an excellent Gross Margin value of 68.34%, STC belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
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 | 68.34% |
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.
Compared to 1 year ago, STC has less shares outstanding
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
Based on the Altman-Z score of 1.20, we must say that STC is in the distress zone and has some risk of bankruptcy.
STC has a Altman-Z score (1.20) which is in line with its industry peers.
STC has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
STC has a better Debt to FCF ratio (1.70) than 75.00% of its industry peers.
STC has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.13, STC is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 1.2 |
ROIC/WACCN/A
WACC8.49%
2.3 Liquidity
A Current Ratio of 0.86 indicates that STC may have some problems paying its short term obligations.
STC has a Current ratio of 0.86. This is comparable to the rest of the industry: STC outperforms 41.67% of its industry peers.
A Quick Ratio of 0.70 indicates that STC may have some problems paying its short term obligations.
STC's Quick ratio of 0.70 is in line compared to the rest of the industry. STC outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.31% over the past year.
Looking at the last year, STC shows a decrease in Revenue. The Revenue has decreased by -4.28% in the last 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)42.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%120%
Revenue 1Y (TTM)-4.28%
Revenue growth 3Y1.79%
Revenue growth 5Y19.31%
Sales Q2Q%-2.58%
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 97.96% on average per year.
STC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.08% yearly.
EPS Next Y82.04%
EPS Next 2Y97.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-12.77%
Revenue Next 2Y-4.08%
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.
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.
Based on the Price/Free Cash Flow ratio, STC is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.37 | ||
| EV/EBITDA | 5.01 |
4.3 Compensation for Growth
STC's earnings are expected to grow with 97.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y97.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for STC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STC (10/3/2025, 7:00:00 PM)
7.43
+0.09 (+1.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners34.91%
Inst Owner ChangeN/A
Ins Owners27.21%
Ins Owner ChangeN/A
Market Cap247.05M
Analysts80
Price Target10.91 (46.84%)
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)1
Avg EPS beat(2)281.52%
Min EPS beat(2)-32.01%
Max EPS beat(2)595.05%
EPS beat(4)1
Avg EPS beat(4)89.5%
Min EPS beat(4)-197.03%
Max EPS beat(4)595.05%
EPS beat(8)2
Avg EPS beat(8)2.25%
EPS beat(12)5
Avg EPS beat(12)12.48%
EPS beat(16)6
Avg EPS beat(16)-258.64%
Revenue beat(2)1
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-2.42%
Max Revenue beat(2)0.34%
Revenue beat(4)1
Avg Revenue beat(4)-3.25%
Min Revenue beat(4)-7.66%
Max Revenue beat(4)0.34%
Revenue beat(8)2
Avg Revenue beat(8)-2.22%
Revenue beat(12)3
Avg Revenue beat(12)-2.89%
Revenue beat(16)7
Avg Revenue beat(16)0.74%
PT rev (1m)-5.93%
PT rev (3m)-5.93%
EPS NQ rev (1m)-8.33%
EPS NQ rev (3m)-8.33%
EPS NY rev (1m)-159.27%
EPS NY rev (3m)36.5%
Revenue NQ rev (1m)-9.25%
Revenue NQ rev (3m)-9.25%
Revenue NY rev (1m)-14.81%
Revenue NY rev (3m)-15.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.75 | ||
| P/FCF | 5.37 | ||
| P/OCF | 4.23 | ||
| P/B | 0.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.01 |
EPS(TTM)-0.21
EYN/A
EPS(NY)-0.04
Fwd EYN/A
FCF(TTM)1.38
FCFY18.62%
OCF(TTM)1.76
OCFY23.62%
SpS9.94
BVpS10.68
TBVpS-1.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.45% | ||
| ROE | -1.97% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 68.34% | ||
| FCFM | 13.92% |
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
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 3Y-0.76%
GM growth 5Y1.11%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.7 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 19.62% | ||
| Cap/Sales | 3.73% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 95.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.2 |
F-Score6
WACC8.49%
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)42.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%120%
EPS Next Y82.04%
EPS Next 2Y97.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.28%
Revenue growth 3Y1.79%
Revenue growth 5Y19.31%
Sales Q2Q%-2.58%
Revenue Next Year-12.77%
Revenue Next 2Y-4.08%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-26.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2383.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1.16%
FCF growth 3Y27.36%
FCF growth 5Y36.51%
OCF growth 1Y-5.56%
OCF growth 3Y25.66%
OCF growth 5Y36.31%