Sierra Wireless Inc (SW.CA) Stock Fundamental Analysis

TSX:SW • CA8265161064

40.99 CAD
-0.33 (-0.8%)
Last: Jan 16, 2023, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Overall SW gets a fundamental rating of 3 out of 10. We evaluated SW against 12 industry peers in the Communications Equipment industry. While SW seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, SW is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

  • In the past year SW was profitable.
  • In the past year SW has reported a negative cash flow from operations.
SW.CA Yearly Net Income VS EBIT VS OCF VS FCFSW.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 -50M

1.2 Ratios

  • SW has negative profitability rations, so we won't be analyzing them here.
  • SW's Return On Invested Capital of 3.47% is fine compared to the rest of the industry. SW outperforms 61.54% of its industry peers.
Industry RankSector 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
SW.CA Yearly ROA, ROE, ROICSW.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 -10 -20 -30

1.3 Margins

  • SW has a better Operating Margin (2.82%) than 61.54% of its industry peers.
  • SW has a Gross Margin of 33.03%. This is in the lower half of the industry: SW underperforms 69.23% of its industry peers.
  • SW's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
SW.CA Yearly Profit, Operating, Gross MarginsSW.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 10 -10 20 30

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SW is destroying value.
  • Compared to 1 year ago, SW has more shares outstanding
  • SW has a worse debt/assets ratio than last year.
SW.CA Yearly Shares OutstandingSW.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 10M 20M 30M
SW.CA Yearly Total Debt VS Total AssetsSW.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 200M 400M 600M

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.
  • SW has a Debt to Equity ratio of 0.19. This is comparable to the rest of the industry: SW outperforms 53.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF N/A
Altman-Z 3.21
ROIC/WACC0.43
WACC8.09%
SW.CA Yearly LT Debt VS Equity VS FCFSW.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 100M 200M 300M 400M

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.
  • Looking at the Current ratio, with a value of 1.76, SW is in line with its industry, outperforming 53.85% of the companies in the same industry.
  • SW has a Quick Ratio of 1.28. This is a normal value and indicates that SW is financially healthy and should not expect problems in meeting its short term obligations.
  • SW has a Quick ratio of 1.28. This is in the better half of the industry: SW outperforms 69.23% of its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.28
SW.CA Yearly Current Assets VS Current LiabilitesSW.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • SW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 190.38%, which is quite impressive.
  • The Revenue has grown by 52.51% in the past year. This is a very strong growth!
  • SW shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.11% yearly.
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
  • The Revenue is expected to grow by 19.94% on average over the next years. This is quite good.
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.
SW.CA Yearly Revenue VS EstimatesSW.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
SW.CA Yearly EPS VS EstimatesSW.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 -1

More info and screens

Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 32.79, which means the current valuation is very expensive for SW.
  • The rest of the industry has a similar Price/Earnings ratio as SW.
  • SW is valuated rather expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 23.39 indicates a rather expensive valuation of SW.
  • SW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SW is cheaper than 76.92% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.06. SW is around the same levels.
Industry RankSector Rank
PE 32.79
Fwd PE 23.39
SW.CA Price Earnings VS Forward Price EarningsSW.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • SW's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 26.95
SW.CA Per share dataSW.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

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.
  • SW's earnings are expected to grow with 55.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y89.84%
EPS Next 3Y55.89%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • SW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

Sierra Wireless Inc

TSX:SW (1/16/2023, 7:00:00 PM)

40.99

-0.33 (-0.8%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)N/A
Earnings (Next)02-22
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 for SW 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.


What is the valuation of Sierra Wireless Inc based on its PE and PB ratios?

The Price/Earnings (PE) ratio for Sierra Wireless Inc (SW.CA) is 32.79 and the Price/Book (PB) ratio is 4.37.