Sangoma Technologies Corporation Common Shares (SANG)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I prefer businesses that earn consistent profits and do not require much debt. Sangoma sells voice and data connectivity and communications platforms, but it is not currently a wonderful business. In fiscal Q1 2026, revenue was $51.0M and net income was -$2.3M, a -4.58% margin. FairStock's ROE and ROCE are -2.56% and -0.83%, which are poor returns. The supplied growth figures are also negative, so the trend is contraction, not expansion. I do not see a wide moat; it competes in communications software and connectivity with only 569 employees and falling sales. Still, the cash flow is interesting: trailing free cash flow is $19.6M, a 13.5% FCF yield at the 2026-10-13 close. At $4.85, P/B is 0.65 and EV/EBITDA is 4.51, so the market is pricing low expectations. But P/E is -25.53, Piotroski is 5/9, Altman Z is 0.71, and FairStock score is 44/100. The Lynch category is none because only 0 years of filed results are available; 3 are needed. Debt is modest with D/E 0.16, which helps. My conclusion: this is a statistically cheap but fragile company. The asset and cash-flow multiples offer potential margin of safety if free cash flow persists, but negative earnings and declining revenue could make cheapness illusory. I would want evidence of stabilizing revenue and positive net income before trusting the value.

In plain English: Sangoma makes software and hardware for business phone and internet communications. The business looks weak right now: it is losing money, and its sales have been shrinking. The stock price is low compared with its accounting value and its cash flow, but because profits are negative, the price may not be as cheap as it first looks.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer