MeritValue

Sangoma Technologies Corp

SANGdata completeness 88%5 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

Sangoma Technologies Corp earns about -8% on invested capital, below its ~9% cost of capital, but has diluted owners by 15% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $39.02 and $71.04 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$131.4M1$224.4M2$252.5M3$247.3M4$236.7M4
Net income$282,0005−$110.8M6−$29M7−$8.66M8−$5.01M8
Operating cash flow$18.5M9$21.1M10$26.5M11$44.2M12$41.8M12
Capital expenditure$1.13M13$1.87M14$4.02M15$4.13M16$2.39M16
Free cash flow (derived)$17.4M9$19.2M10$22.5M11$40.1M12$39.4M12
Total debt—————
Cash & equivalents$22.1M17$12.7M18$11.2M19$16.2M19$13.5M19
Diluted shares28.9M21.4M33.0M33.3M33.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$76.42
your share of equity
Profit it earned you last year
−$1.51
Free cash flow it threw off
$11.84
Debt you’d be carrying
—

10 shares is a claim on $76.42 of net worth that earned you −$1.51 and generated $11.84 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-8% avg · 5y
FY21 1%FY22 -29%FY23 -8%FY24 -1%FY25 -1%

It earned about -8% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+15% shares · 5y

Share count is up 15% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $39.02 and $71.04 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$71.04
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$39.4M
DCF · Growth Exit 5Y
$39.02
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$39.4M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $39.02
The three cases
Bear0.0%$17.33
Base20.0%$39.02
Bull20.0%$39.02

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 40-F · period ending 2021-06-30 · accession 0001104659-22-103136 (Revenue)
  2. 40-F · period ending 2022-06-30 · accession 0001753368-23-000020 (Revenue)
  3. 40-F · period ending 2023-06-30 · accession 0001753368-24-000014 (Revenue)
  4. 40-F · period ending 2024-06-30 · accession 0001753368-25-000018 (Revenue)
  5. 40-F · period ending 2021-06-30 · accession 0001104659-22-103136 (ProfitLoss)
  6. 40-F · period ending 2022-06-30 · accession 0001753368-23-000020 (ProfitLoss)
  7. 40-F · period ending 2023-06-30 · accession 0001753368-24-000014 (ProfitLoss)
  8. 40-F · period ending 2024-06-30 · accession 0001753368-25-000018 (ProfitLoss)
  9. 40-F · period ending 2021-06-30 · accession 0001104659-22-103136 (CashFlowsFromUsedInOperatingActivities)
  10. 40-F · period ending 2022-06-30 · accession 0001753368-23-000020 (CashFlowsFromUsedInOperatingActivities)
  11. 40-F · period ending 2023-06-30 · accession 0001753368-24-000014 (CashFlowsFromUsedInOperatingActivities)
  12. 40-F · period ending 2024-06-30 · accession 0001753368-25-000018 (CashFlowsFromUsedInOperatingActivities)
  13. 40-F · period ending 2021-06-30 · accession 0001104659-22-103136 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  14. 40-F · period ending 2022-06-30 · accession 0001753368-23-000020 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  15. 40-F · period ending 2023-06-30 · accession 0001753368-24-000014 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  16. 40-F · period ending 2024-06-30 · accession 0001753368-25-000018 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  17. 40-F · period ending 2021-06-30 · accession 0001753368-23-000020 (CashAndCashEquivalents)
  18. 40-F · period ending 2022-06-30 · accession 0001753368-24-000014 (CashAndCashEquivalents)
  19. 40-F · period ending 2023-06-30 · accession 0001753368-25-000018 (CashAndCashEquivalents)