TSE:STC

Sangoma Technologies Corp. (STC.TO)

4.96
-0.04 (0.80%)
as of Jun 8, 2026, 2:27:24 pm Market Open.
164 watching
0
WEAK BUY
Neutral on it. Cloud-based communications as a service. Buy in thirds here at $11, 10, and 9. 12-month analyst target of $17.25. Better opportunities elsewhere.
PAST TOP PICK
(A Top Pick Aug 16/21, Down 27%) They continue to execute, performing as well as US peers. The unified communication space has seen a big PE contraction, but the PE is better now. PE got really high in this space. They recently did a stock split. If they continue to execute, STC will do well. He recently trimmed his large position, but still owns this.
DON'T BUY
Used to own stock personally, but has sold all ownership. Return on equity has gone negative which is a big red flag. Believes company is very speculative. Not a good investment for long term investors.
PAST TOP PICK
(A Top Pick Oct 15/20, Up 33%) Reported this morning. Completed a 7:1 role back. Pulled off an acquisition that was transformational and allowed them to compete with their US peers which trades at higher multiples. Still in a good place. Been impressed with them so far.
BUY ON WEAKNESS
He likes it. They made a big acquisition this year, which triggered a stock run, but recently a pullback when he picked up shares. Valuation is good vs. peers. They often exceed guidance and analysts' expectations. He targets $4.50-5.
TOP PICK
Hardware, software and services to help integrate phone calls between phones, laptops, text messages. You should look for upgraded guidance in the fall. They may pursue a NASDAQ listing in the US. (Analysts’ price target is $5.57)
BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The recent sell of is probably due to it being associated as a COVID play. The company has a long track record of revenue growth, even more than prior to the pandemic. Margins are expanding. At 2x sales, you could start a position here. Unlock Premium - Try 5i Free

BUY
Recent acquisition will help them transform to a faster growth company with more customers, recurring revenue from SaaS, and US exposure. Likes management. Main reason share price has pulled back is the correction in growth stocks. Looks cheap here, and he's been adding at these levels.
TOP PICK
Unified communications business. Growing by acquisition, increasing recurring revenues. Very profitable business. Recent massive acquisition. Can go after larger contracts with a better product. Another example of a Canadian company trading at discount to US peers. Valuation gap should narrow as the quarters come in. Selloff gives you a good chance to get in. No dividend. (Analysts’ price target is $5.78)
DON'T BUY
Internet over the phone, cheaper than conventional systems. EPS expected to decline to 4 cents in 2022. Analysts price target of $5.75, which is 50% upside. He's skeptical. Pass at the moment.
WATCH
Knows the management team. Likes the management team. Longer term, there is good upside. A little expensive right now. Good for those looking for small cap exposure.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Could add a position here with a long time frame. Investors want to see how the integration plays out from the recent deal. It still has good growth potential and the merger is positive. Volatility is normal for a relatively small company. Unlock Premium - Try 5i Free

BUY
Unified communications industry. A nice move late last year. Recently announced a pretty large acquisition, which brings up percentage of recurring revenue. Will turn out to be a good acquisition. Good entry point here.
RISKY
An internet protocol telephone system company. A big market is Korea. Their acquisition in process is transformative. The stock has potential 2-3x upside.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The acquisition announced today looks good. It’s a very large acquisition but 5i likes that most payment is in stock. This increases the market cap to a level that will attract new investors. Revenue will be boosted. A very solid move by the company. Unlock Premium - Try 5i Free

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