What’s Behind the Numbers For Sangoma Technologies Corporation (TSXV:STC)?

The Price to book ratio is the current share price of a company divided by the book value per share.  The Price to Book ratio for Sangoma Technologies Corporation TSXV:STC is 1.786928.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for Sangoma Technologies Corporation (TSXV:STC) is 14.632418.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for Sangoma Technologies Corporation (TSXV:STC) is 65.653714. This ratio is found by taking the current share price and dividing by earnings per share.

Some investment professionals believe that a great way to find, study, and invest in equities without getting completely overwhelmed, is to have a systematic and research driven approach. Of course, the same approach may not work for everybody. One investor may find one way that works for them, and another investor might find something completely different when it comes to portfolio picking. Trading and investing can carry a major emotional component. Even after careful research, being able to pull the trigger on a trade may still involve squashing the fear that comes with the thought of being wrong. Finding continued success in the stock market may entail keeping the portfolio balanced, but also finding the courage to get in when necessary, or get out when needed. Developing this confidence may take a lot of practice and determination.

There are many different tools to determine whether a company is profitable or not.  One of the most popular ratios is the “Return on Assets” (aka ROA).  This score indicates how profitable a company is relative to its total assets.  The Return on Assets for Sangoma Technologies Corporation (TSXV:STC) is 0.036723.  This number is calculated by dividing net income after tax by the company’s total assets.  A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Sangoma Technologies Corporation (TSXV:STC) is 4.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

Investors may be interested in viewing the Gross Margin score on shares of Sangoma Technologies Corporation (TSXV:STC). The name currently has a score of 30.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

Sangoma Technologies Corporation (TSXV:STC) has a current MF Rank of 2853. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

Further, we can see that Sangoma Technologies Corporation (TSXV:STC) has a Shareholder Yield of -0.533258 and a Shareholder Yield (Mebane Faber) of -0.85689. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Checking in on some valuation rankings, Sangoma Technologies Corporation (TSXV:STC) has a Value Composite score of 42. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 55.

Technical traders may be following indicators to help spot possible entry and exit points. The two main types of indicators are lagging and leading. The leading indicator precedes stock price movements which can be used as a predictor. Lagging indicators may be used as confirmation as they follow price action. Lagging indicators may be highly useful when the market is trending, and leading indicators may be the strongest when the market is moving sideways. Indicators that stay within a certain range are referred to as oscillators. These common indicators are usually monitored for trading signals when the reading gets close to a specific level. 

Volatility/PI

Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The Volatility 12m of Sangoma Technologies Corporation (TSXV:STC) is 60.172300.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of Sangoma Technologies Corporation (TSXV:STC) is 46.808000.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 41.245600.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Sangoma Technologies Corporation (TSXV:STC) for last month was 1.02256. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Sangoma Technologies Corporation (TSXV:STC) is 1.81333.

Traders using technical analysis typically believe that all the needed information to trade a specific stock can be spotted in the charts. These traders are generally taking a shorter-term view when studying the market. Technical analysts are usually striving to spot the directional trend of a stock. Trends may be noted as upward, downward, or sideways. Many technicians will rely heavily on support and resistance levels in order to make informed decisions when buying and selling equities. These traders are also closely watching volume levels to help gauge activity. Traders are constantly searching for patterns in the charts. There are many different identifiable patterns that traders can look for. Some of these include head and shoulders, triangles, and double tops/bottoms.

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