Altigen Communications

ATGN

Telecommunications Services · Communication Services

Price

$0.47

+0.00 (+0.00%)

Market Cap

$7.9M

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+11.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 23.3M (2021) → 25.9M (2025)

Altigen Communications makes business phone and communication software. Its main products are cloud-based phone systems and contact center tools built on Microsoft Teams, helping companies manage calls, voicemail, and customer service in one place. The company sells primarily to small and mid-sized businesses in the United States.

Altigen earns most of its revenue through recurring software subscriptions and cloud service fees, which helps create a steady, predictable income stream. It operates almost entirely in the U.S. and is a very small company, with a market cap under $50 million. Its close integration with Microsoft Teams gives it a niche position, but that same dependence on Microsoft is also a key risk — any major change to Microsoft's platform or partner policies could significantly affect Altigen's business.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.1% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-76.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$1M/ year

↓ Declining (-72% vs prior year)

9.4% of revenue

Below sector average (12%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

10.8%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~3 years

$3M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

$3M cash & investments at current burn rate

Revenue declining

Altigen Communications's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

63.0%

Premium pricing power — 63.0% gross margin

Operating Margin

5.4%

Thin — 5.4% operating margin

ROCE

1.4%

Weak — 1.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+1.0%

Nearly flat sales (1.0% YoY)

EPS YoY

-22.8%

Earnings shrinking (-22.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

167%

Turns 167% of profit into real cash

FCF Margin

8.6%

Modest free cash flow (8.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.00

Conservative — low debt load (0.00)

Interest Cover

20.79x

Comfortably covers interest (20.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

16.1x

Fair value — P/E 16.1

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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