SANGOMA TECHNOLOGIES CORP (STC.CA) Stock Fundamental Analysis
Canada - TSX:STC - CA80100R4089 - Common Stock
7.04 CAD
+0.06 (+0.86%)
We assign a fundamental rating of 3 out of 10 to STC. STC was compared to 13 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 expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
STC had negative earnings in the past year.
STC had a positive operating cash flow in the past year.
STC had negative earnings in 4 of the past 5 years.
STC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STC has a better Return On Assets (-1.45%) than 69.23% of its industry peers.
STC has a better Return On Equity (-1.97%) than 76.92% 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
STC's Gross Margin of 68.34% is amongst the best of the industry. STC outperforms 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 | 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
Compared to 5 years ago, STC has more shares outstanding
STC has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 1.12, STC is in line with its industry, outperforming 53.85% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.70, 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 0.13. This is a healthy value indicating a solid balance between debt and equity.
STC's Debt to Equity ratio of 0.13 is in line compared to the rest of the industry. STC outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 1.12 |
ROIC/WACCN/A
WACC7.94%
2.3 Liquidity
A Current Ratio of 0.86 indicates that STC may have some problems paying its short term obligations.
The Current ratio of STC (0.86) is worse than 61.54% of its industry peers.
A Quick Ratio of 0.70 indicates that STC may have some problems paying its short term obligations.
STC has a worse Quick ratio (0.70) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
STC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.31%, which is quite impressive.
Looking at the last year, STC shows a decrease in Revenue. The Revenue has decreased by -4.28% in the last year.
The Revenue has been growing by 19.31% on average over the past years. This is quite good.
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
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.
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 | 5.05 | ||
| EV/EBITDA | 4.74 |
4.3 Compensation for Growth
A more expensive valuation may be justified as STC's earnings are expected to grow with 97.96% in the coming years.
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 (11/5/2025, 7:00:00 PM)
7.04
+0.06 (+0.86%)
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 Cap234.08M
Revenue(TTM)236.69M
Net Income(TTM)-5010000
Analysts80
Price Target10.91 (54.97%)
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)-72.31%
EPS NQ rev (3m)-86.67%
EPS NY rev (1m)0%
EPS NY rev (3m)36.5%
Revenue NQ rev (1m)-5.6%
Revenue NQ rev (3m)-14.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-14.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.7 | ||
| P/FCF | 5.05 | ||
| P/OCF | 3.98 | ||
| P/B | 0.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.74 |
EPS(TTM)-0.21
EYN/A
EPS(NY)-0.04
Fwd EYN/A
FCF(TTM)1.4
FCFY19.82%
OCF(TTM)1.77
OCFY25.13%
SpS10.02
BVpS10.76
TBVpS-1.36
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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
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-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 | 1.12 |
F-Score6
WACC7.94%
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%
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 of SANGOMA TECHNOLOGIES CORP (STC.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to SANGOMA TECHNOLOGIES CORP (STC.CA). This can be considered as Overvalued.
Can you provide the profitability details for SANGOMA TECHNOLOGIES CORP?
SANGOMA TECHNOLOGIES CORP (STC.CA) has a profitability rating of 3 / 10.
How financially healthy is SANGOMA TECHNOLOGIES CORP?
The financial health rating of SANGOMA TECHNOLOGIES CORP (STC.CA) is 4 / 10.