Sangoma Technologies Corp (NASDAQ: SANG)

Sector: Technology Industry: Software - Infrastructure CIK: 0001753368
P/B 0.94
P/E -43.38
P/S 1.04
Market Cap 170.93 Mn
ROIC (Qtr) -1.31
Div Yield % 0.00
Rev 1y % (Qtr) -16.74
Total Debt (Qtr) 36.66 Mn
Debt/Equity (Qtr) 0.20

About

Stock Price Chart

Analysis

Pros

  • Strong operating cash flow of 25.07M provides robust 0.68x coverage of total debt 36.66M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 25.07M provides strong 12.77x coverage of stock compensation 1.96M, indicating sustainable incentive practices.
  • Operating cash flow of 25.07M provides exceptional 10.54x coverage of interest expenses 2.38M, showing strong debt service capability.
  • Robust free cash flow of 18.96M exceeds capital expenditure of 6.11M by 3.10x, indicating strong organic growth funding capability.
  • Tangible assets of 42.46M provide exceptional 6.28x coverage of deferred revenue 6.76M, showing strong service capability backing.

Cons

  • Operating cash flow of 25.07M barely covers its investment activities of (2.85M), with a coverage ratio of -8.80, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (2.85M) provide weak support for R&D spending of 30.52M, which is -0.09x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 25.07M provides minimal -22.82x coverage of tax expenses of (1.10M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (2.66M) show weak coverage of depreciation charges of 28.16M, with a -0.09 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of (108.18M) provide limited buffer against comprehensive income items of 55797.10, which is -1938.73x, indicating elevated exposure to market risks.

Peer Comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,542.10 Bn 33.76 12.06 60.56 Bn
2 ORCL Oracle Corp 533.93 Bn 34.61 8.75 124.39 Bn
3 PLTR Palantir Technologies Inc. 437.56 Bn 399.47 112.31 0.24 Bn
4 PANW Palo Alto Networks Inc 125.16 Bn 112.03 13.10 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 120.85 Bn -384.67 26.47 0.82 Bn
6 SNPS Synopsys Inc 71.69 Bn 35.89 11.14 15.14 Bn
7 NET Cloudflare, Inc. 67.84 Bn -658.43 33.70 3.50 Bn
8 FTNT Fortinet, Inc. 63.33 Bn 33.80 9.66 1.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 0.61 2.56
EV to Cash from Ops. 5.92 38.32
EV to Debt 4.05 -11.37
EV to EBIT -55.78 -12.79
EV to EBITDA 5.80 7.72
EV to Free Cash Flow [EV/FCF] 7.82 24.22
EV to Market Cap 0.87 0.58
EV to Revenue 0.90 -35.00
Price to Book Value [P/B] 0.94 3.74
Price to Earnings [P/E] -43.38 -18.61

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % 0.00 2.69
Dividend per Basic Share 0.00 0.10
FCF Dividend Payout Ratio % 0.00 1.67
Interest Coverage -1.12 -13.15

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 20.31 -404.11
Cash and Equivalents Growth (1y) % -7.72 226.02
Dividend Growth (1y) % 0.00 -0.27
EBIAT Growth (1y) % -19.69 31.15
EBITDA Growth (1y) % -8.58 49.02
EBIT Growth (1y) % -38.79 25.85
EBT Growth (1y) % 23.53 17.82
EPS Growth (1y) % 36.93 70.69
FCF Growth (1y) % -32.32 295.45
Gross Profit Growth (1y) % -8.76 49.96

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.49 0.68
Cash Payout Ratio 0.00 0.02
Cash Ratio 0.32 1.21
Current Ratio 0.87 2.57
Debt to Equity Ratio 0.20 -0.93
Interest Cover Ratio -1.12 -13.15
Times Interest Earned -1.12 -13.15

Profitability

Metric Value Industry Percentile
EBITDA Margin % 15.50 -544.82
EBIT Margin % -2.23 -197.78
EBT Margin % -3.06 -602.74
Gross Margin % 69.20 52.06
Net Profit Margin % -2.40 -605.52