In order to measure the good health (liquidity and solvency) of a company, how much cash has been generated by the company needs to be analysed. Price/cash flow (P/CF) ratio is a measure of the market’s expectations of a firm’s future financial health. The ratio is considered more reliable than the price/earnings (P/E) ratio to evaluate a company, as cash flow is not easily manipulated unlike earnings which could be easily manipulated through depreciation and other non-cash factors.
Today, we have shortlisted 8 Canadian technology stocks that have recorded low P/CF ratios during their latest reported quarter. These stocks have P/CF ratio of less than 10, which is considered as an attractive investment from a valuation standpoint.
|
Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
1-Month |
1-Month Average Volume |
Price to Cash Flow Ratio* |
|
Sangoma Technologies Corp |
TSXV |
STC |
8.6 |
0.30 |
1.7% |
30,754 |
3.0 |
|
TeraGo Inc |
TSX |
TGO |
66.5 |
5.70 |
14.2% |
13,221 |
4.3 |
|
Platinum Communications Corp |
TSXV |
PCS |
5.1 |
0.09 |
5.9% |
9,701 |
4.5 |
|
Vecima Networks Inc |
TSX |
VCM |
190.7 |
8.54 |
4.8% |
29,283 |
5.1 |
|
Quorum Information Technologies Inc |
TSXV |
QIS |
8.9 |
0.22 |
0.0% |
51,549 |
5.7 |
|
Redline Communications Group Inc |
TSX |
RDL |
48.7 |
2.86 |
-4.7% |
37,052 |
9.5 |
|
Wi-Lan Inc |
TSX |
WIN |
448.4 |
3.73 |
3.3% |
627,662 |
9.5 |
|
CriticalControl Solutions Corp |
TSX |
CCZ |
21.8 |
0.38 |
-15.6% |
13,933 |
9.7 |
Source: Bloomberg
*as per last reported quarter
Company Description
Sangoma Technologies Corp (TSXV: STC)
Sangoma Technologies Corporation develops, manufactures, and markets connectivity hardware and software products for wide area networks and Internet infrastructure. The company’s product lines include wide area network routing solutions, communications modules, and technology licensing to original equipment manufacturers.
TeraGo Inc (TSX: TGO)
TeraGo Inc., provides wireless broadband communications to businesses in Canada. The company owns and operates a carrier-grade, fixed wireless, IP communications network for medium-sized businesses that require broadband Internet access and data connectivity services.
Platinum Communications Corp (TSXV: PCS)
Platinum Communications Corporation provides enterprise class communication solutions. The company offers high capacity Internet and telephony services in both urban and rural areas that are beyond the reach of traditional Internet service providers.
Vecima Networks Inc (TSX: VCM)
Vecima Networks Inc. designs, manufactures, sells communication products that enable access to cable, wireless, and telephony networks. The company offers products which include data over cable, digital video, and broadband wireless telecom products.
Quorum Information Technologies Inc (TSXV: QIS)
Quorum Information Technologies Inc. is an information technology company that develops, markets, implements, and supports technology products and services. The company provides car dealerships in western Canada and Onatrio with AutoMate, an integrated Windows-based dealership and customer management system, and XSellerator, software that converts dealerships from their legacy systems.
Redline Communications Group Inc (TSX: RDL)
Redline Communications is the creator of wide-area wireless networks for challenging applications and locations. The company’s’ products are used by oil and gas companies, militaries, municipalities and telecom service providers. Redline provides powerful and versatile networks securely and reliably deliver voice, data, M2M and video communications for mission-critical applications.
Wi-Lan Inc (TSX: WIN)
Wi-LAN Inc. is an intellectual property licensing and technology development company. The company’s patent portfolio covers many technologies used in cellular, Wi-Fi, DSL, and cable modem standards as well as the FCC-mandated upgradable V-chip. Wi-LAN also acquires patents to license.
CriticalControl Solutions Corp (TSX: CCZ)
Critical Control Solutions Corp. provides control over mission critical information. The company builds, operates and supports applications which gather, manage, and disseminate information primarily in government and the energy sectors.
