The truth is that if you invest for long enough, you're going to end up with some losing stocks. Long term Sangoma Technologies Corporation (TSE:STC) shareholders know that all too well, since the share price is down considerably over three years. So they might be feeling emotional about the 67% share price collapse, in that time.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

View our latest analysis for Sangoma Technologies

Because Sangoma Technologies made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last three years, Sangoma Technologies saw its revenue grow by 22% per year, compound. That's well above most other pre-profit companies. The share price has moved in quite the opposite direction, down 19% over that time, a bad result. This could mean hype has come out of the stock because the losses are concerning investors. But a share price drop of that magnitude could well signal that the market is overly negative on the stock.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. So it makes a lot of sense to check out what analysts think Sangoma Technologies will earn in the future (free profit forecasts).

A Different Perspective

It's nice to see that Sangoma Technologies shareholders have received a total shareholder return of 38% over the last year. There's no doubt those recent returns are much better than the TSR loss of 5% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Sangoma Technologies better, we need to consider many other factors. For instance, we've identified 1 warning sign for Sangoma Technologies that you should be aware of.