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Sangoma Technologies Corp (SANG)



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Upturn Advisory Summary
03/20/2025: SANG (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -45.09% | Avg. Invested days 31 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 149.50M USD | Price to earnings Ratio - | 1Y Target Price 8.25 |
Price to earnings Ratio - | 1Y Target Price 8.25 | ||
Volume (30-day avg) 11040 | Beta 1.56 | 52 Weeks Range 4.04 - 7.99 | Updated Date 04/1/2025 |
52 Weeks Range 4.04 - 7.99 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.2 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -2.81% | Operating Margin (TTM) -1.37% |
Management Effectiveness
Return on Assets (TTM) -0.19% | Return on Equity (TTM) -2.61% |
Valuation
Trailing PE - | Forward PE 714.29 | Enterprise Value 204835553 | Price to Sales(TTM) 0.62 |
Enterprise Value 204835553 | Price to Sales(TTM) 0.62 | ||
Enterprise Value to Revenue 0.85 | Enterprise Value to EBITDA 4.67 | Shares Outstanding 33594400 | Shares Floating 25889766 |
Shares Outstanding 33594400 | Shares Floating 25889766 | ||
Percent Insiders 26.56 | Percent Institutions 36.17 |
Analyst Ratings
Rating 4.6 | Target Price 8.38 | Buy 2 | Strong Buy 3 |
Buy 2 | Strong Buy 3 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Sangoma Technologies Corp
Company Overview
History and Background
Sangoma Technologies Corporation was founded in 1984 and has evolved from a PC connectivity company to a global leader in cloud-based Communications as a Service (UCaaS) and on-premise solutions.
Core Business Areas
- Unified Communications (UCaaS): Provides cloud-based communication and collaboration solutions, including voice, video, messaging, and collaboration tools. This includes services like business phone systems, contact center solutions, and team collaboration platforms.
- On-Premise Communications: Offers hardware and software solutions for businesses to build and manage their own communication infrastructure. This includes PBX systems, VoIP gateways, session border controllers (SBCs), and telephony cards.
- Network Infrastructure: Provides network infrastructure products, such as access points, switches, and routers, that are designed to support Sangoma's communication solutions.
Leadership and Structure
Sangoma is led by a management team headed by the CEO. The organizational structure includes departments for sales, marketing, engineering, customer support, and finance. The company operates globally with offices and partners around the world.
Top Products and Market Share
Key Offerings
- Switchvox: A comprehensive UCaaS platform designed for small to medium-sized businesses, providing features such as VoIP, video conferencing, and team collaboration. Competitors include RingCentral, 8x8, and Zoom. Market share is not publicly disclosed but is estimated to be smaller than market leaders.
- FreePBX: An open-source PBX platform that provides a flexible and customizable communication solution. While FreePBX is free to use, Sangoma provides commercial support and add-on modules. Competitors include Asterisk and other open-source PBX systems. It's widely used, but capturing precise revenue is difficult due to its open-source nature.
- Session Border Controllers (SBCs): Sangoma offers SBCs that secure and manage VoIP traffic across network borders. Competitors include Oracle, Ribbon Communications. Exact market share is not publicly disclosed, though it is a player in the space.
Market Dynamics
Industry Overview
The communications industry is undergoing a rapid transformation driven by cloud computing, mobile technology, and the increasing demand for unified communications solutions. The industry is highly competitive, with numerous vendors offering a wide range of products and services.
Positioning
Sangoma positions itself as a provider of both cloud-based and on-premise communication solutions, catering to a wide range of customer needs. The company's competitive advantages include its open-source expertise, comprehensive product portfolio, and strong channel partner network.
Total Addressable Market (TAM)
The TAM for Unified Communications is estimated in the tens of billions of dollars. Sangoma aims to capture a growing share through its diverse product line and strategic acquisitions.
Upturn SWOT Analysis
Strengths
- Diverse product portfolio
- Strong open-source expertise
- Established channel partner network
- Hybrid cloud and on-premise solutions
- Acquisition-driven growth
Weaknesses
- Smaller scale compared to industry giants
- Reliance on acquisitions for growth
- Integration challenges from acquisitions
- Competition from larger, well-funded companies
Opportunities
- Growing demand for UCaaS solutions
- Expansion into new geographic markets
- Development of innovative communication technologies
- Cross-selling opportunities across product lines
Threats
- Intense competition in the UCaaS market
- Rapid technological advancements
- Economic downturn impacting IT spending
- Security threats and data privacy concerns
Competitors and Market Share
Key Competitors
- RNG
- EGHT
- ZM
Competitive Landscape
Sangoma faces intense competition from larger, well-funded companies in the UCaaS market. Its advantages include its open-source expertise and hybrid cloud/on-premise solutions. Disadvantages include its smaller scale and reliance on acquisitions for growth.
Major Acquisitions
Star2Star Communications
- Year: 2019
- Acquisition Price (USD millions): 437
- Strategic Rationale: Expanded Sangoma's UCaaS offerings and strengthened its channel partner network.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by organic growth and strategic acquisitions. Access to financial data is required for a comprehensive analysis.
Future Projections: Future Projections requires access to financial data and analyst reports and is not possible at this time.
Recent Initiatives: Recent strategic initiatives include acquisitions to expand the product portfolio and geographic reach, and product development efforts focused on cloud-based communication solutions.
Summary
Sangoma is a communications company with a diversified portfolio that includes both UCaaS and on-premise solutions. Its acquisition-driven growth strategy has been successful in expanding its product offerings and market reach. However, the company faces intense competition from larger players in the UCaaS market and needs to effectively integrate acquired businesses to realize synergies. Future success depends on continued innovation and strategic acquisitions to maintain its competitive edge.
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Sources and Disclaimers
Data Sources:
- Company Website
- Industry Reports
- Analyst Reports
- Financial Filings
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It should not be construed as financial advice. Market share data is based on estimates and may not be precise. Financial data needs to be pulled from Sangoma financial statements.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Sangoma Technologies Corp
Exchange NASDAQ | Headquaters Markham, ON, Canada | ||
IPO Launch date 2021-11-08 | CEO & Director Mr. Charles J. Salameh | ||
Sector Technology | Industry Software - Infrastructure | Full time employees 671 | Website https://sangoma.com |
Full time employees 671 | Website https://sangoma.com |
Sangoma Technologies Corporation, together with its subsidiaries, develops, manufactures, distributes, and supports voice and data connectivity components for software-based communication applications in the United States of America and internationally. The company offers communications platforms comprising pure cloud and hybrid unified communications as a service, and on-premises systems; retail and wholesale SIP trunking, as well as fax as a service; Sangoma TeamHub, a unified communications and collaboration platform for business productivity; Sangoma Meet, a multi-party video conferencing platform; and Sangoma CX, a cloud-native contact center suite that enables businesses to manage inbound interactions across multiple channels. It also provides productivity apps comprising appointment suite, call flow, curbside, phone monitor, send, and urgent notify; managed security services, such as antispam, web filtering, antivirus, botnet and domain reputation, app control and intrusion prevention system services, and managed firewall device; and network management solutions, including managed internet, VPN, and SD-WAN, as well as secure Wi-Fi access points. In addition, the company offers open-source software products, such as Asterisk, an open-source framework for building real-time and multi-protocol communications applications; FreePBX, a web-based open-source GUI for controlling and managing Asterisk; and PBXact, a commercial UC system. Further, it provides desktop and wireless phones, network connectivity hardware, wireless and wired headsets, accessories, analog and digital telephony cards, and Wi-Fi access points; and session border controllers, VoIP gateways, and PSTN interface and media processing boards. The company serves distributors, resellers, enterprises, original equipment manufacturers service providers, and end users comprising small, mid-sized, and large businesses. Sangoma Technologies Corporation is headquartered in Markham, Canada.
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