TSX:STC - Post Discussion
Post by
retiredcf on Jul 21, 2023 11:51am
Donville/Kent
STC is one of the five companies mentioned in their July report. GLTA
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Sangoma (STC)
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We recently had a call with Sangoma’s Chairman and Interim CEO.
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In their most recent quarter, they reported 18% revenue growth with service revenue growing 37% and EBITDA margins of 19.4%. Their SaaS revenue grew 10% organically and now represents 81% of revenue.
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They are well along the path of bringing on a new CEO who should be able to improve communication to the market plus have the experience of running a business at a much more significant scale than where Sangoma is now.
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Their team and market data confirm that growth and margins should remain strong. They don’t see erosion from a margin perspective going forward and they aim for 10% organic growth but most likely can do better than that.
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The stock is currently trading on 3x EBITDA, roughly 4x cash earnings, and seems to have bottomed around the $5/share level.
https://donvillekent.com/wp-content/uploads/2023/07/DKAM-ROE-Reporter-July-Final.pdf
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