Sangoma Technologies Corp T.STC

Valuation

[Stonksonlyup90]

4.8x EV/EBITDA (TTM EBITDA = $43.6M USD)
17% FCF YIELD (TTM FCF = $35.4M USD)

^ I'll buy that all day every day!!

[Tan4646]

So you're saying stc has a mkt cap 3x fcf TTM.  The market says who cares. I would not be surprised if it closes under 3.75 today.   Long stc but shaking my head. 

[mingzhu]

your valuation did not include $115m debt, 85% of MC, That is why It stressed the convenants are not breached in the PR.  If, for some reason, it does, this will be penny stock. That is the greatest risk if you buy here. 

[Captain71]

Quarter after quarter they keep on about increasing recurring revenue and free cash flow (not EPS like it should be), yet we are down nearly 90% now. Sure there is risk involved investing in stocks but this is rediculous.   Is there a risk of bankruptcy here or something that they are not mentioning? How could a company that “they” claim is doing fine perform so poorly?   Is management

[Tan4646]

One aspect that probably contributes to it's beat down is that the debt has floating rates,, but with rates decreasing and 11M in cash they should have no problem meeting their covenants. Other than that is the on going buyers strike for small caps.  Soon people will be looking at their advisors and asking for more than 4.5% in a money market or GIC. (before tax)

[GeraldW]

Currently at 2X EBITDA TTM to Net Debt, Sangoma is a low leverage stock. Any talk of debt issues, rates or otherwise does not really apply to Sangoma financial position as it stands.

[Torontojay]

I agree, there are no issues regarding the ability to pay down its debt.