Sangoma Technologies Corp. (STC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Total Telcom, Inc.

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Sangoma Technologies Corp.

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Blackline Safety Corp.

Novra Technologies, Inc.

Gatekeeper Systems, Inc.

NuRAN Wireless, Inc.

Wi2Wi Corp.

Critical Infrastructure Technologies Ltd.

Edgewater Wireless Systems, Inc.

Why is Sangoma Technologies Corp. ?

Poor Management Efficiency with a low ROCE of 0.51%

The company has been able to generate a Return on Capital Employed (avg) of 0.51% signifying low profitability per unit of total capital (equity and debt)

With a growth in Net Profit of 19.82%, the company declared Very Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at CAD 64.46 MM
ROCE(HY) Highest at -2.67%
INTEREST COVERAGE RATIO(Q) Highest at 1,147.93

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -8.00%, its profits have fallen by -18.9%

High Institutional Holdings at 24.85%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -8.00% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sangoma Technologies Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sangoma Technologies Corp.

-9.85%

-0.22

42.92%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.78%

EBIT Growth (5y)

-178.97%

EBIT to Interest (avg)

0.54

Debt to EBITDA (avg)

2.13

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

0.74

Tax Ratio

7.51%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

23.09%

ROCE (avg)

0.51%

ROE (avg)

0.43%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.59

EV to EBIT

-56.34

EV to EBITDA

4.05

EV to Capital Employed

0.62

EV to Sales

0.76

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.11%

ROE (Latest)

-1.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

NET PROFIT(HY)

Higher at CAD -5.03 MM

DEBT-EQUITY RATIO (HY)

Lowest at 11.23 %

DEBTORS TURNOVER RATIO(HY)

Highest at 15.85 times

INTEREST COVERAGE RATIO(Q)

Highest at 1,559.79

RAW MATERIAL COST(Y)

Fallen by -7.32% (YoY

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 46 MM

OPERATING PROFIT(Q)

Lowest at CAD 12.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.64 %

NET PROFIT(Q)

Lowest at CAD -2.59 MM

Here's what is working for Sangoma Technologies Corp.

Interest Coverage Ratio

Highest at 1,559.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 11.23 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 15.85 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -7.32% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Sangoma Technologies Corp.

Operating Cash Flow

Lowest at CAD 46 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Operating Profit

Lowest at CAD 12.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 17.64 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CAD -2.59 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)