SANGOMA TECHNOLOGIES CORP (SANG) Stock Fundamental Analysis
NASDAQ:SANG - Nasdaq - CA80100R4089 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to SANG. SANG was compared to 51 industry peers in the Communications Equipment industry. SANG may be in some trouble as it scores bad on both profitability and health. SANG has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SANG has reported negative net income.
In the past year SANG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SANG reported negative net income in multiple years.
Each year in the past 5 years SANG had a positive operating cash flow.
1.2 Ratios
SANG has a Return On Assets (-1.81%) which is in line with its industry peers.
The Return On Equity of SANG (-2.63%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.81% | ||
| ROE | -2.63% | ||
| 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
SANG has a Gross Margin of 69.01%. This is amongst the best in the industry. SANG outperforms 96.00% of its industry peers.
SANG's Gross Margin has improved in the last couple of years.
SANG 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 | 69.01% |
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
SANG does not have a ROIC to compare to the WACC, probably because it is not profitable.
SANG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SANG has more shares outstanding
The debt/assets ratio for SANG has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.06, we must say that SANG is in the distress zone and has some risk of bankruptcy.
SANG's Altman-Z score of 1.06 is in line compared to the rest of the industry. SANG outperforms 54.00% of its industry peers.
The Debt to FCF ratio of SANG is 1.71, which is an excellent value as it means it would take SANG, only 1.71 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.71, SANG is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
SANG has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.18, SANG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 1.06 |
ROIC/WACCN/A
WACC7.99%
2.3 Liquidity
A Current Ratio of 0.86 indicates that SANG may have some problems paying its short term obligations.
SANG has a worse Current ratio (0.86) than 92.00% of its industry peers.
A Quick Ratio of 0.63 indicates that SANG may have some problems paying its short term obligations.
SANG's Quick ratio of 0.63 is on the low side compared to the rest of the industry. SANG is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
SANG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.55%.
SANG shows a decrease in Revenue. In the last year, the revenue decreased by -4.17%.
SANG shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.46% yearly.
EPS 1Y (TTM)4.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%40%
Revenue 1Y (TTM)-4.17%
Revenue growth 3Y23.46%
Revenue growth 5Y24.46%
Sales Q2Q%-5.08%
3.2 Future
Based on estimates for the next years, SANG will show a very strong growth in Earnings Per Share. The EPS will grow by 38.30% on average per year.
SANG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.54% yearly.
EPS Next Y33.96%
EPS Next 2Y38.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.15%
Revenue Next 2Y-0.54%
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 SANG. In the last year negative earnings were reported.
Also next year SANG 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, SANG is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
100.00% of the companies in the same industry are more expensive than SANG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.71 | ||
| EV/EBITDA | 5.57 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SANG's earnings are expected to grow with 38.30% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.3%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SANG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SANG (2/21/2025, 8:00:01 PM)
5.815
+0.13 (+2.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners35.22%
Inst Owner Change-88.8%
Ins Owners26.88%
Ins Owner ChangeN/A
Market Cap193.87M
Analysts80
Price Target8.31 (42.91%)
Short Float %0.03%
Short Ratio0.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)-102.52%
Min EPS beat(2)-197.03%
Max EPS beat(2)-8.01%
EPS beat(4)1
Avg EPS beat(4)-64.27%
Min EPS beat(4)-197.03%
Max EPS beat(4)27.99%
EPS beat(8)3
Avg EPS beat(8)-59.15%
EPS beat(12)4
Avg EPS beat(12)-391.51%
EPS beat(16)5
Avg EPS beat(16)-324.61%
Revenue beat(2)0
Avg Revenue beat(2)-5.46%
Min Revenue beat(2)-7.67%
Max Revenue beat(2)-3.26%
Revenue beat(4)0
Avg Revenue beat(4)-3.27%
Min Revenue beat(4)-7.67%
Max Revenue beat(4)-0.9%
Revenue beat(8)2
Avg Revenue beat(8)-2.15%
Revenue beat(12)4
Avg Revenue beat(12)-0.77%
Revenue beat(16)7
Avg Revenue beat(16)0.86%
PT rev (1m)4.22%
PT rev (3m)1.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-161.54%
EPS NY rev (3m)-172%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-6.26%
Revenue NY rev (3m)-7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.8 | ||
| P/FCF | 4.71 | ||
| P/OCF | 3.78 | ||
| P/B | 0.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.57 |
EPS(TTM)-0.21
EYN/A
EPS(NY)-0.02
Fwd EYN/A
FCF(TTM)1.23
FCFY21.21%
OCF(TTM)1.54
OCFY26.43%
SpS7.24
BVpS7.72
TBVpS-1.37
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.81% | ||
| ROE | -2.63% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 69.01% | ||
| FCFM | 17.05% |
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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.71 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 22.22% | ||
| Cap/Sales | 4.2% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 115.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.06 |
F-Score5
WACC7.99%
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)4.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%40%
EPS Next Y33.96%
EPS Next 2Y38.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.17%
Revenue growth 3Y23.46%
Revenue growth 5Y24.46%
Sales Q2Q%-5.08%
Revenue Next Year-4.15%
Revenue Next 2Y-0.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y33.24%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year4679.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y215.38%
FCF growth 3Y28.15%
FCF growth 5Y37.43%
OCF growth 1Y122.53%
OCF growth 3Y33.68%
OCF growth 5Y38.57%