SANGOMA TECHNOLOGIES CORP (STC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:STC - CA80100R4089 - Common Stock
6.62 CAD
-0.03 (-0.45%)
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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
STC had negative earnings in the past year.
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 Return On Assets of -1.61%. This is in the better half of the industry: STC outperforms 66.67% of its industry peers.
STC has a Return On Equity of -2.16%. This is in the better half of the industry: STC outperforms 75.00% 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
With an excellent Gross Margin value of 69.22%, 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.
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.
Compared to 1 year ago, STC has less shares outstanding
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 1.12, we must say that STC is in the distress zone and has some risk of bankruptcy.
STC has a Altman-Z score (1.12) which 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.
Looking at the Debt to FCF ratio, with a value of 1.93, STC belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that STC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.11, STC perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.93 | ||
| Altman-Z | 1.12 |
ROIC/WACCN/A
WACC8.45%
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 Current ratio (0.87) which is comparable to the rest of the industry.
A Quick Ratio of 0.72 indicates that STC may have some problems paying its short term obligations.
STC has a Quick ratio of 0.72. This is comparable to the rest of the industry: STC outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
STC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.00%, which is quite impressive.
STC shows a decrease in Revenue. In the last year, the revenue decreased by -6.97%.
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)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
STC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 91.45, the valuation of STC can be described as expensive.
75.00% of the companies in the same industry are more expensive than STC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.98. STC is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 91.45 |
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 cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.04 | ||
| EV/EBITDA | 4.54 |
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 (1/12/2026, 7:00:00 PM)
6.62
-0.03 (-0.45%)
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 Cap219.39M
Revenue(TTM)227.36M
Net Income(TTM)-5.44M
Analysts82
Price Target11.22 (69.49%)
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)0%
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 | 91.45 | ||
| P/S | 0.7 | ||
| P/FCF | 6.04 | ||
| P/OCF | 4.57 | ||
| P/B | 0.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.54 |
EPS(TTM)-0.22
EYN/A
EPS(NY)0.07
Fwd EY1.09%
FCF(TTM)1.1
FCFY16.54%
OCF(TTM)1.45
OCFY21.88%
SpS9.52
BVpS10.52
TBVpS-1.12
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 | 1.12 |
F-Score5
WACC8.45%
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.