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Sangoma Technologies

TSXV:STC
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STC
TSXV
CA$87M
Market Cap
  1. Home
  2. CA
  3. Tech
Company description

Sangoma Technologies Corporation develops, manufactures, distributes, and supports voice and data connectivity components for software-based communication applications worldwide. The last earnings update was 19 days ago. More info.


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STC Share Price and Events
7 Day Returns
0%
TSXV:STC
-1.8%
CA Communications
0.1%
CA Market
1 Year Returns
27.9%
TSXV:STC
-8.1%
CA Communications
-2.9%
CA Market
STC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sangoma Technologies (STC) 0% -2.4% 7.8% 27.9% 450% 450%
CA Communications -1.8% -7.1% -1.6% -8.1% -13.4% -8.4%
CA Market 0.1% -1.4% -0.6% -2.9% 11.5% 0.9%
1 Year Return vs Industry and Market
  • STC outperformed the Communications industry which returned -8.1% over the past year.
  • STC outperformed the Market in Canada which returned -2.9% over the past year.
Price Volatility
STC
Industry
5yr Volatility vs Market
Related Companies

STC Value

 Is Sangoma Technologies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sangoma Technologies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sangoma Technologies.

TSXV:STC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSXV:STC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.1
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.095 (1 + (1- 26.5%) (27.72%))
1.213
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.213 * 5.96%)
9.18%

Discounted Cash Flow Calculation for TSXV:STC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sangoma Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSXV:STC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 9.18%)
2019 1.38 Est @ -28.25% 1.27
2020 1.12 Est @ -19.19% 0.94
2021 0.97 Est @ -12.85% 0.75
2022 0.89 Est @ -8.41% 0.63
2023 0.84 Est @ -5.3% 0.54
2024 0.82 Est @ -3.13% 0.48
2025 0.80 Est @ -1.61% 0.44
2026 0.80 Est @ -0.54% 0.40
2027 0.80 Est @ 0.21% 0.36
2028 0.81 Est @ 0.73% 0.34
Present value of next 10 years cash flows CA$6.13
TSXV:STC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$0.81 × (1 + 1.95%) ÷ (9.18% – 1.95%)
CA$11.39
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$11.39 ÷ (1 + 9.18%)10
CA$4.73
TSXV:STC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$6.13 + CA$4.73
CA$10.87
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$10.87 / 52.46
CA$0.21
TSXV:STC Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$0.21
Current discount Discount to share price of CA$1.65
= -1 x (CA$1.65 - CA$0.21) / CA$0.21
-696.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Sangoma Technologies is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sangoma Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sangoma Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSXV:STC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$0.01
TSXV:STC Share Price ** TSXV (2019-06-14) in CAD CA$1.65
Canada Communications Industry PE Ratio Median Figure of 6 Publicly-Listed Communications Companies 39.49x
Canada Market PE Ratio Median Figure of 545 Publicly-Listed Companies 15.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sangoma Technologies.

TSXV:STC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSXV:STC Share Price ÷ EPS (both in CAD)

= 1.65 ÷ 0.01

133.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sangoma Technologies is overvalued based on earnings compared to the CA Communications industry average.
  • Sangoma Technologies is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Sangoma Technologies's expected growth come at a high price?
Raw Data
TSXV:STC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 133.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
193%per year
North America Communications Industry PEG Ratio Median Figure of 23 Publicly-Listed Communications Companies 1.19x
Canada Market PEG Ratio Median Figure of 247 Publicly-Listed Companies 1.15x

*Line of best fit is calculated by linear regression .

TSXV:STC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 133.47x ÷ 193%

0.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sangoma Technologies is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Sangoma Technologies's assets?
Raw Data
TSXV:STC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$0.78
TSXV:STC Share Price * TSXV (2019-06-14) in CAD CA$1.65
Canada Communications Industry PB Ratio Median Figure of 15 Publicly-Listed Communications Companies 1.29x
Canada Market PB Ratio Median Figure of 2,417 Publicly-Listed Companies 1.4x
TSXV:STC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSXV:STC Share Price ÷ Book Value per Share (both in CAD)

= 1.65 ÷ 0.78

2.1x

* Primary Listing of Sangoma Technologies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sangoma Technologies is overvalued based on assets compared to the CA Communications industry average.
X
Value checks
We assess Sangoma Technologies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Sangoma Technologies has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

STC Future Performance

 How is Sangoma Technologies expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
193%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sangoma Technologies expected to grow at an attractive rate?
  • Sangoma Technologies's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Sangoma Technologies's earnings growth is expected to exceed the Canada market average.
  • Sangoma Technologies's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSXV:STC Future Growth Rates Data Sources
Data Point Source Value (per year)
TSXV:STC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 193%
TSXV:STC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 12.2%
Canada Communications Industry Earnings Growth Rate Market Cap Weighted Average 136.3%
Canada Communications Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.6%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSXV:STC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSXV:STC Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 131 1
2020-06-30 123 19 6 4
2019-06-30 108 6 1 4
TSXV:STC Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 97 6 0
2018-12-31 84 8 0
2018-09-30 67 5 1
2018-06-30 57 7 2
2018-03-31 48 7 2
2017-12-31 38 6 1
2017-09-30 33 7 1
2017-06-30 27 5 1
2017-03-31 25 6 0
2016-12-31 24 5 0
2016-09-30 22 5 0
2016-06-30 21 4 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sangoma Technologies's earnings are expected to grow significantly at over 20% yearly.
  • Sangoma Technologies's revenue is expected to grow by 12.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSXV:STC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Sangoma Technologies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSXV:STC Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30
2020-06-30 0.11 0.12 0.09 3.00
2019-06-30 0.02 0.02 0.02 3.00
TSXV:STC Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 0.01
2018-12-31 0.00
2018-09-30 0.03
2018-06-30 0.07
2018-03-31 0.04
2017-12-31 0.04
2017-09-30 0.03
2017-06-30 0.02
2017-03-31 0.01
2016-12-31 0.01
2016-09-30 0.00
2016-06-30 0.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Sangoma Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Sangoma Technologies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sangoma Technologies has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

STC Past Performance

  How has Sangoma Technologies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sangoma Technologies's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sangoma Technologies has delivered over 20% year on year earnings growth in the past 5 years.
  • Sangoma Technologies's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Sangoma Technologies's 1-year earnings growth is negative, it can't be compared to the CA Communications industry average.
Earnings and Revenue History
Sangoma Technologies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sangoma Technologies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSXV:STC Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 97.11 0.50 34.36 17.73
2018-12-31 84.44 0.18 28.94 14.53
2018-09-30 66.96 1.07 21.72 9.87
2018-06-30 57.36 2.45 18.75 7.77
2018-03-31 47.50 1.92 16.15 6.53
2017-12-31 38.07 1.45 13.84 5.42
2017-09-30 32.91 1.13 12.57 5.35
2017-06-30 26.88 0.80 10.95 5.14
2017-03-31 25.30 0.48 10.16 4.98
2016-12-31 23.79 0.30 9.65 4.81
2016-09-30 22.30 0.09 9.58 4.73
2016-06-30 21.19 0.11 9.36 4.61
2016-03-31 20.43 0.42 8.94 4.44
2015-12-31 19.92 0.56 8.93 4.30
2015-09-30 18.26 0.32 7.78 3.80
2015-06-30 16.32 0.25 6.87 3.44
2015-03-31 14.96 0.62 6.14 3.04
2014-12-31 13.65 0.53 5.42 2.76
2014-09-30 13.86 0.91 5.73 2.68
2014-06-30 13.83 0.74 5.78 2.59
2014-03-31 13.85 -3.73 6.11 2.54
2013-12-31 13.55 -4.03 6.07 2.55
2013-09-30 12.67 -4.50 5.93 2.65
2013-06-30 12.95 -4.33 5.86 2.83
2013-03-31 12.66 -0.69 5.92 3.00
2012-12-31 13.09 -0.46 5.98 2.99
2012-09-30 13.77 -0.03 5.97 3.00
2012-06-30 13.76 0.41 6.03 2.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Sangoma Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Sangoma Technologies used its assets less efficiently than the CA Communications industry average last year based on Return on Assets.
  • Sangoma Technologies has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Sangoma Technologies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sangoma Technologies has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

STC Health

 How is Sangoma Technologies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sangoma Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sangoma Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sangoma Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sangoma Technologies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sangoma Technologies Company Filings, last reported 2 months ago.

TSXV:STC Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 40.52 23.99 7.07
2018-12-31 39.09 25.19 6.79
2018-09-30 39.17 24.91 5.01
2018-06-30 35.34 4.55 15.78
2018-03-31 33.97 4.82 14.03
2017-12-31 21.23 2.16 3.30
2017-09-30 20.47 2.28 3.00
2017-06-30 19.34 3.88 6.76
2017-03-31 19.15 1.34 2.28
2016-12-31 18.84 1.34 2.28
2016-09-30 18.43 1.34 2.37
2016-06-30 18.23 1.34 2.09
2016-03-31 18.34 1.34 1.45
2015-12-31 18.18 1.34 2.92
2015-09-30 18.06 1.34 1.80
2015-06-30 17.95 1.34 2.52
2015-03-31 17.77 1.34 2.01
2014-12-31 16.33 1.34 6.15
2014-09-30 16.45 0.00 5.09
2014-06-30 16.38 0.00 4.99
2014-03-31 15.84 0.00 4.13
2013-12-31 15.66 0.00 4.35
2013-09-30 15.42 0.00 4.34
2013-06-30 15.54 0.02 4.02
2013-03-31 19.57 0.02 3.54
2012-12-31 19.63 0.03 3.39
2012-09-30 19.97 0.05 4.54
2012-06-30 19.91 0.05 5.03
  • Sangoma Technologies's level of debt (59.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 59.2% today).
  • Debt is well covered by operating cash flow (24.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.6x coverage).
X
Financial health checks
We assess Sangoma Technologies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sangoma Technologies has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

STC Dividends

 What is Sangoma Technologies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Sangoma Technologies dividends.
If you bought CA$2,000 of Sangoma Technologies shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Sangoma Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Sangoma Technologies's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSXV:STC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
North America Communications Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.5%
Canada Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSXV:STC Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-06-30
2020-06-30
2019-06-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Sangoma Technologies has not reported any payouts.
  • Unable to verify if Sangoma Technologies's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Sangoma Technologies's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Sangoma Technologies has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Sangoma Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sangoma Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sangoma Technologies has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

STC Management

 What is the CEO of Sangoma Technologies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bill Wignall
COMPENSATION CA$682,000
TENURE AS CEO 8.8 years
CEO Bio

Mr. William J. Wignall, also known as Bill, B.ASc., P.Eng. has been the Chief Executive Officer and President at Sangoma Technologies Corp. since September 7, 2010. He served in senior management roles throughout his career at companies ranging in size from startups to Northern Telecom, BNI and Telezone. Mr. Wignall served as the Chief Executive Officer and President at Truition Inc. At Truition Inc., He was responsible for the Strategic Direction and Operational Growth of the organization. He served as the President and Chief Executive Officer of Electronics Workbench (now National Instruments Electronics Workbench Group), where he guided it through an aggressive growth and rebranding phase that culminated in the sale of it to National Instruments. Before joining National Instruments Electronics Workbench Group, Mr. Wignall served as Vice President at Broadband Networks of Winnipeg (now part of Northern Telecom). Prior to that, he served as Vice President and General Manager for Telezone and also served various management positions at Nortel. He has more than 12 years of executive management experience in the electronics industry and served senior level positions in key functional areas including engineering, marketing, finance and general management. He serves as Chairman of the Board at MolecuLight, Inc. He has been a Director of Triant Holdings Inc., since January 1, 2006 and Sangoma Technologies Corp. since December 2010. He served as a Director of Averna Technologies Inc. since 2006 and also served as its Lead Director. He serves on or chairs multiple Boards of Directors in the technology and not-for-profit sectors, where he implements his strong "people first" beliefs. Mr. Wignall is a Registered Professional Engineer in Ontario and holds a B.A.Sc. in Electrical Engineering from the University of Toronto. He is also a graduate of Stanford University's Executive Program for Growing Companies.

CEO Compensation
  • Bill's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Bill's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Sangoma Technologies management team in years:

5.4
Average Tenure
  • The average tenure for the Sangoma Technologies management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Bill Wignall

TITLE
President
COMPENSATION
CA$682K
TENURE
8.8 yrs

David Moore

TITLE
Chief Financial Officer
COMPENSATION
CA$350K
TENURE
8.7 yrs

Nenad Corbic

TITLE
Chief Technology Officer
TENURE
2.1 yrs

Doug Vilim

TITLE
Vice President of Global Sales
COMPENSATION
CA$231K

Frederic Dickey

TITLE
Vice President of Cloud Services
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure of the Sangoma Technologies board of directors in years:

6.8
Average Tenure
  • The tenure for the Sangoma Technologies board of directors is about average.
Board of Directors

David Mandelstam

TITLE
Chairman of the Board
COMPENSATION
CA$30K

Bill Wignall

TITLE
President
COMPENSATION
CA$682K
TENURE
8.5 yrs

Al Guarino

TITLE
Independent Director
COMPENSATION
CA$15K
TENURE
5.1 yrs

Yves Laliberté

TITLE
Independent Director
COMPENSATION
CA$15K
TENURE
11.8 yrs

Allan Brett

TITLE
Independent Director
COMPENSATION
CA$15K
TENURE
3.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Sangoma Technologies insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
07. Jun 19 Sell David Moore Individual 06. Jun 19 06. Jun 19 -18,100 CA$1.65 CA$-29,865
07. Jun 19 Buy David Moore Individual 06. Jun 19 06. Jun 19 43,358 CA$0.35 CA$15,175
07. Jun 19 Sell William Wignall Individual 03. Jun 19 03. Jun 19 -242,729 CA$1.60 CA$-388,366
07. Jun 19 Buy William Wignall Individual 03. Jun 19 03. Jun 19 571,875 CA$0.35 CA$200,156
17. Apr 19 Sell David Mandelstam Individual 07. Dec 18 07. Dec 18 -3,200 CA$1.34 CA$-4,288
05. Mar 19 Sell Anthony Lewis Individual 26. Feb 19 05. Mar 19 -64,100 CA$1.22 CA$-77,837
26. Feb 19 Sell Anthony Lewis Individual 19. Feb 19 26. Feb 19 -700,899 CA$1.77 CA$-1,101,352
10. Dec 18 Sell David Mandelstam Individual 05. Dec 18 05. Dec 18 -6,800 CA$1.38 CA$-9,384
22. Jun 18 Sell David Moore Individual 22. Jun 18 22. Jun 18 -120,000 CA$1.20 CA$-144,000
18. Jun 18 Buy David Moore Individual 18. Jun 18 18. Jun 18 120,000 CA$1.20 CA$144,000
X
Management checks
We assess Sangoma Technologies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sangoma Technologies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

STC News

Simply Wall St News

What Kind Of Shareholder Appears On The Sangoma Technologies Corporation's (CVE:STC) Shareholder Register?

Our analysis of the ownership of the company, below, shows that institutions own shares in the company. … Check out our latest analysis for Sangoma Technologies TSXV:STC Ownership Summary, June 5th 2019 What Does The Institutional Ownership Tell Us About Sangoma Technologies? … Insider Ownership Of Sangoma Technologies The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Should Sangoma Technologies Corporation (CVE:STC) Focus On Improving This Fundamental Metric?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Sangoma Technologies: 0.5% = CA$178k ÷ CA$39m (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Sangoma Technologies's Debt And Its 0.5% Return On Equity Sangoma Technologies has a debt to equity ratio of 0.64, which is far from excessive. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Should You Worry About Sangoma Technologies Corporation's (CVE:STC) CEO Pay Cheque?

First, this article will compare CEO compensation with compensation at similar sized companies. … See our latest analysis for Sangoma Technologies … How Does Bill Wignall's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Investors Who Bought Sangoma Technologies (CVE:STC) Shares Three Years Ago Are Now Up 365%

One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Over the last three years, Sangoma Technologies failed to grow earnings per share, which fell 39% (annualized). … Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

Simply Wall St -

You Might Like Sangoma Technologies Corporation (CVE:STC) But Do You Like Its Debt?

However, an important fact which most ignore is: how financially healthy is the business? … Understanding the company's financial health becomes. … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

Sangoma Technologies Corporation (CVE:STC) Earns Among The Best Returns In Its Industry

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Have Insiders Been Selling Sangoma Technologies Corporation (CVE:STC) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Sangoma Technologies Corporation (CVE:STC). … The Last 12 Months Of Insider Transactions At Sangoma Technologies. … Over the last year, we can see that the biggest insider sale was by Nicholas Galea for CA$918k worth of shares, at about CA$0.80 per share.

Simply Wall St -

Sangoma Technologies Corporation (CVE:STC): Does The Earnings Decline Make It An Underperformer?

When Sangoma Technologies Corporation (CVE:STC) announced its most recent earnings (30 September 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Understanding how Sangoma Technologies performed requires a benchmark rather than trying to assess a standalone number at one point in time. … STC recently turned a profit of CA$1.1m (most recent trailing twelve-months) compared to its average loss of -CA$254.1k over the past five years

Simply Wall St -

Is Sangoma Technologies Corporation's (CVE:STC) CEO Paid At A Competitive Rate?

Bill Wignall became the CEO of Sangoma Technologies Corporation (CVE:STC) in 2010. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Bill Wignall's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Could Sangoma Technologies Corporation's (CVE:STC) Investor Composition Influence The Stock Price?

If you want to know who really controls Sangoma Technologies Corporation (CVE:STC), then you'll have to look at the makeup of its share registry. … Sangoma Technologies is not a large company by global standards. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

STC Company Info

Description

Sangoma Technologies Corporation develops, manufactures, distributes, and supports voice and data connectivity components for software-based communication applications worldwide. It offers private branch exchange (PBX) platforms, including PBXact Cloud, a cloud based business communication platform; PBXact, an on-premise PBX phone systems; PBXact SaaS, software as a service; and FreePBX. It also provides session border controllers; digital and Voice over IP gateways; and telephony cards; and contact center software products, as well as telecom accessories and cables, and call tapping and recording products. Further, the company offers after-sales, and maintenance and consulting services. It serves small and medium sized businesses, enterprises, OEMs, carriers, and service providers. Sangoma Technologies Corporation was founded in 1984 and is based in Markham, Canada.

Details
Name: Sangoma Technologies Corporation
STC
Exchange: TSXV
Founded: 1984
CA$86,553,467
52,456,647
Website: http://www.sangoma.com
Address: Sangoma Technologies Corporation
100 Renfrew Drive,
Suite 100,
Markham,
Ontario, L3R 9R6,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSXV STC Common Shares TSX Venture Exchange CA CAD 02. May 2000
OTCPK SAMO.F Common Shares Pink Sheets LLC US USD 02. May 2000
DB 54G Common Shares Deutsche Boerse AG DE EUR 02. May 2000
Number of employees
Current staff
Staff numbers
0
Sangoma Technologies employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 23:44
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/05/30
Last earnings filing: 2019/05/28
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.