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Sangoma Technologies Corp T.STC

Alternate Symbol(s):  SANG

Sangoma Technologies Corporation is a provider of managed cloud-based communications and technology solutions for businesses worldwide. The Company offers a comprehensive suite of cloud-native communication solutions, including software, endpoints, and connectivity services. It offers a complete set of cloud communications services, flexible deployment options including cloud and on-premises, and customer service. The Company’s solutions include communication services, phone and devices, network connectivity, and MSP services. It delivers hosted phone services for contact centers, small businesses, and other organizations looking to the Cloud for managing their business communications. It provides desk phones, headset, and DECT phones. Its network connectivity solutions include voice over Internet protocol (VoIP) gateways, Session Border Controller (SBC), and telephony cards. The Company also provides open-source communications software.


TSX:STC - Post by User

Comment by Torontojayon May 28, 2023 7:52am
144 Views
Post# 35467720

RE:Q3

RE:Q3

That's a good question. 

Free cash flow could go towards: 

1) balance sheet deleveraging 

2) share buybacks 

3) growth capital expenditures. 

That's why some investors prefer companies that pay out dividends because they at least get to benefit from these free cash flows in a tangible way. Another situation that arises is when a company has plenty of debt accumulated on its balance sheet and they use this cash just to pay down this debt. For instance, Sangoma purchases several companies and have now accumulated some debt. They could use this free cash flow to lower their principal debt payments which could go on for several years. The more debt a company has today, the less money available for growth initiatives. In a nutshell, this means that free cash flow can remain high but the growth rate in these cash flows may be modest due to deleveraging. 

 

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