SANGOMA TECHNOLOGIES CORP (STC.CA) Stock Fundamental Analysis
TSX:STC - Toronto Stock Exchange - CA80100R4089 - Common Stock - Currency: CAD
Overall STC gets a fundamental rating of 3 out of 10. We evaluated STC against 12 industry peers in the Communications Equipment industry. STC may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, STC is valued expensive at the moment.
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.
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
STC has a Return On Assets of -1.92%. This is comparable to the rest of the industry: STC outperforms 58.33% of its industry peers.
Looking at the Return On Equity, with a value of -2.71%, STC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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.
STC's Gross Margin has improved in the last couple of years.
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 | 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.
Compared to 1 year ago, STC has more 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 1.14, we must say that STC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of STC (1.14) 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.
With a decent Debt to FCF ratio value of 1.71, STC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
STC has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of STC (0.16) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 1.14 |
ROIC/WACCN/A
WACC8.26%
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.
A Quick Ratio of 0.69 indicates that STC may have some problems paying 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
The Earnings Per Share has grown by an nice 12.50% over the past year.
STC shows a decrease in Revenue. In the last year, the revenue decreased by -4.71%.
Measured over the past years, STC shows a very strong growth in Revenue. The Revenue has been growing by 24.46% on average per year.
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
Based on estimates for the next years, STC will show a decrease in Revenue. The Revenue will decrease by -0.74% on average per year.
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
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.
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 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 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.44 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
STC's earnings are expected to grow with 35.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y35.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for STC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STC (6/20/2025, 7:00:00 PM)
8.12
+0.18 (+2.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners25.14%
Inst Owner ChangeN/A
Ins Owners26.88%
Ins Owner ChangeN/A
Market Cap272.10M
Analysts80
Price Target11.6 (42.86%)
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)0.55%
PT rev (3m)-5.7%
EPS NQ rev (1m)50%
EPS NQ rev (3m)50%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.03%
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 | 0.83 | ||
| P/FCF | 5.44 | ||
| P/OCF | 4.28 | ||
| P/B | 0.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.48 |
EPS(TTM)-0.29
EYN/A
EPS(NY)-0.06
Fwd EYN/A
FCF(TTM)1.49
FCFY18.37%
OCF(TTM)1.9
OCFY23.36%
SpS9.75
BVpS10.44
TBVpS-1.58
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 | 1.14 |
F-Score5
WACC8.26%
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%