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 11 industry peers in the Communications Equipment industry. STC has a bad profitability rating. Also its financial health evaluation is rather negative. STC does not seem to be growing, but still is valued expensively.
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.
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 (-1.81%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -2.63%, STC is in line with its industry, outperforming 50.00% of the companies in the same 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
The Gross Margin of STC (69.01%) is better than 90.00% of its industry peers.
STC's Gross Margin has improved in the last couple of years.
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 | 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
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 1.05, we must say that STC is in the distress zone and has some risk of bankruptcy.
STC has a Altman-Z score (1.05) which 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.
STC's Debt to FCF ratio of 1.71 is in line compared to the rest of the industry. STC outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that STC is not too dependend on debt financing.
STC has a Debt to Equity ratio of 0.18. This is comparable to the rest of the industry: STC outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 1.05 |
ROIC/WACCN/A
WACC7.75%
2.3 Liquidity
A Current Ratio of 0.86 indicates that STC may have some problems paying its short term obligations.
STC's Current ratio of 0.86 is on the low side compared to the rest of the industry. STC is outperformed by 70.00% of its industry peers.
STC has a Quick Ratio of 0.86. 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's Quick ratio of 0.63 is on the low side compared to the rest of the industry. STC is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
STC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.55%.
Looking at the last year, STC shows a decrease in Revenue. The Revenue has decreased by -4.17% in the last year.
STC 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
The Earnings Per Share is expected to grow by 38.30% on average over the next years. This is a very strong growth
STC 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
STC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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
90.00% of the companies in the same industry are more expensive than STC, based on the Enterprise Value to EBITDA ratio.
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 | 4.67 | ||
| EV/EBITDA | 5.53 |
4.3 Compensation for Growth
STC's earnings are expected to grow with 38.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.3%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:STC (2/21/2025, 7:00:00 PM)
8.18
+0.12 (+1.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners35.22%
Inst Owner ChangeN/A
Ins Owners26.88%
Ins Owner ChangeN/A
Market Cap272.72M
Analysts80
Price Target12.3 (50.37%)
Short Float %N/A
Short RatioN/A
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)8.43%
PT rev (3m)8.43%
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 | 4.67 | ||
| P/OCF | 3.75 | ||
| P/B | 0.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.53 |
EPS(TTM)-0.3
EYN/A
EPS(NY)-0.03
Fwd EYN/A
FCF(TTM)1.75
FCFY21.41%
OCF(TTM)2.18
OCFY26.68%
SpS10.27
BVpS10.96
TBVpS-1.95
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 | 1.05 |
F-Score5
WACC7.75%
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%