Sierra Wireless Inc (SW.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SW - CA8265161064 - Common Stock
40.99 CAD
-0.33 (-0.8%)
SW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 13 industry peers in the Communications Equipment industry. While SW seems to be doing ok healthwise, there are quite some concerns on its profitability. SW is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SW had positive earnings in the past year.
In the past year SW has reported a negative cash flow from operations.
1.2 Ratios
The profitability ratios for SW are negative, so there is not much use analyzing them.
The Return On Invested Capital of SW (3.47%) is better than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | 3.47% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Operating Margin of SW (2.82%) is better than 61.54% of its industry peers.
Looking at the Gross Margin, with a value of 33.03%, SW is doing worse than 69.23% of the companies in the same industry.
SW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.82% | ||
| PM (TTM) | N/A | ||
| GM | 33.03% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.21%
GM growth 5Y-1.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SW is destroying value.
The number of shares outstanding for SW has been increased compared to 1 year ago.
SW has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.21 indicates that SW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.21, SW is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that SW is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.19, SW perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.21 |
ROIC/WACC0.43
WACC8.09%
2.3 Liquidity
SW has a Current Ratio of 1.76. This is a normal value and indicates that SW is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.76, SW perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
A Quick Ratio of 1.28 indicates that SW should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.28, SW is doing good in the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 190.38% over the past year.
The Revenue has grown by 52.51% in the past year. This is a very strong growth!
The Revenue has been decreasing by -5.11% on average over the past years.
EPS 1Y (TTM)190.38%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%144.64%
Revenue 1Y (TTM)52.51%
Revenue growth 3Y-15.83%
Revenue growth 5Y-5.11%
Sales Q2Q%101.4%
3.2 Future
The Earnings Per Share is expected to grow by 41.72% on average over the next years. This is a very strong growth
Based on estimates for the next years, SW will show a quite strong growth in Revenue. The Revenue will grow by 19.94% on average per year.
EPS Next Y241.12%
EPS Next 2Y89.84%
EPS Next 3Y55.89%
EPS Next 5Y41.72%
Revenue Next Year52.17%
Revenue Next 2Y25.66%
Revenue Next 3Y23.26%
Revenue Next 5Y19.94%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.79, the valuation of SW can be described as expensive.
SW's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.59. SW is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 23.39, the valuation of SW can be described as rather expensive.
76.92% of the companies in the same industry are more expensive than SW, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SW to the average of the S&P500 Index (24.03), we can say SW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.79 | ||
| Fwd PE | 23.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 26.95 |
4.3 Compensation for Growth
SW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SW's earnings are expected to grow with 55.89% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y89.84%
EPS Next 3Y55.89%
5. Dividend
5.1 Amount
No dividends for SW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:SW (1/16/2023, 7:00:00 PM)
40.99
-0.33 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners19.43%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.60B
Revenue(TTM)676.88M
Net Income(TTM)-21.57M
Analysts52.31
Price Target40.78 (-0.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.76%
Min EPS beat(2)-41.64%
Max EPS beat(2)51.16%
EPS beat(4)3
Avg EPS beat(4)289.14%
Min EPS beat(4)-41.64%
Max EPS beat(4)1027.45%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-4.5%
Min Revenue beat(2)-14.03%
Max Revenue beat(2)5.04%
Revenue beat(4)3
Avg Revenue beat(4)6.43%
Min Revenue beat(4)-14.03%
Max Revenue beat(4)18.5%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-2.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.79 | ||
| Fwd PE | 23.39 | ||
| P/S | 1.78 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 4.37 | ||
| P/tB | 11.5 | ||
| EV/EBITDA | 26.95 |
EPS(TTM)1.25
EY3.05%
EPS(NY)1.75
Fwd EY4.28%
FCF(TTM)-1.35
FCFYN/A
OCF(TTM)-0.8
OCFYN/A
SpS23.09
BVpS9.37
TBVpS3.57
PEG (NY)0.14
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | N/A | ||
| ROIC | 3.47% | ||
| ROICexc | 5.08% | ||
| ROICexgc | 13.66% | ||
| OM | 2.82% | ||
| PM (TTM) | N/A | ||
| GM | 33.03% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.21%
GM growth 5Y-1.28%
F-Score3
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 69.86% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 3.21 |
F-Score3
WACC8.09%
ROIC/WACC0.43
Cap/Depr(3y)66.21%
Cap/Depr(5y)60.87%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)190.38%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%144.64%
EPS Next Y241.12%
EPS Next 2Y89.84%
EPS Next 3Y55.89%
EPS Next 5Y41.72%
Revenue 1Y (TTM)52.51%
Revenue growth 3Y-15.83%
Revenue growth 5Y-5.11%
Sales Q2Q%101.4%
Revenue Next Year52.17%
Revenue Next 2Y25.66%
Revenue Next 3Y23.26%
Revenue Next 5Y19.94%
EBIT growth 1Y125.59%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year293.41%
EBIT Next 3Y99.31%
EBIT Next 5Y102.44%
FCF growth 1Y-14.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-59.99%
OCF growth 3YN/A
OCF growth 5YN/A
Sierra Wireless Inc / SW.CA FAQ
Can you provide the ChartMill fundamental rating for Sierra Wireless Inc?
ChartMill assigns a fundamental rating of 4 / 10 to SW.CA.
What is the valuation status of Sierra Wireless Inc (SW.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to Sierra Wireless Inc (SW.CA). This can be considered as Overvalued.
How profitable is Sierra Wireless Inc (SW.CA) stock?
Sierra Wireless Inc (SW.CA) has a profitability rating of 1 / 10.
Can you provide the PE and PB ratios for SW stock?
The Price/Earnings (PE) ratio for Sierra Wireless Inc (SW.CA) is 32.79 and the Price/Book (PB) ratio is 4.37.
Can you provide the financial health for SW stock?
The financial health rating of Sierra Wireless Inc (SW.CA) is 5 / 10.