Sierra Wireless Inc (SW.CA) Fundamental Analysis & Valuation

TSX:SW • CA8265161064

Current stock price

40.99 CAD
-0.33 (-0.8%)
Last:

This SW.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. SW.CA Profitability Analysis

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.
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.
  • The Return On Invested Capital of SW (3.47%) is better than 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 Operating Margin of 2.82%. This is in the better half of the industry: SW outperforms 61.54% of its industry peers.
  • The Gross Margin of SW (33.03%) is worse than 69.23% of its industry peers.
  • In the last couple of years the Gross Margin of SW has remained more or less at the same level.
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

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4

2. SW.CA Health Analysis

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.
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

  • SW has an Altman-Z score of 3.21. This indicates that SW is financially healthy and has little risk of 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.
  • The Debt to Equity ratio of SW (0.19) is comparable to the rest of the industry.
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

  • A Current Ratio of 1.76 indicates that SW should not have too much problems paying its short term obligations.
  • SW's Current ratio of 1.76 is in line compared to the rest of the industry. SW outperforms 53.85% of its industry peers.
  • 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.
  • 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 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. SW.CA Growth Analysis

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.
  • Looking at the last year, SW shows a very strong growth in Revenue. The Revenue has grown by 52.51%.
  • 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

  • Based on estimates for the next years, SW will show a very strong growth in Earnings Per Share. The EPS will grow by 41.72% on average per year.
  • 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

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

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3

4. SW.CA Valuation Analysis

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.
  • SW is valuated rather expensively when we compare the Price/Earnings ratio to 26.64, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 23.39, which indicates a rather expensive current valuation of SW.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SW indicates a somewhat cheap valuation: SW is cheaper than 76.92% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. 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 50 100 150

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as SW.
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

  • The 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%

More info and screens

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

0

5. SW.CA Dividend Analysis

5.1 Amount

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

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SW.CA Fundamentals: All Metrics, Ratios and Statistics

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
Industry Strength70.87
Industry Growth49.25
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 Number0 (-100%)
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 Fundamental Analysis 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.


Can you provide the profitability details for Sierra Wireless Inc?

Sierra Wireless Inc (SW.CA) has a profitability rating of 1 / 10.


What is the financial health of Sierra Wireless Inc (SW.CA) stock?

The financial health rating of Sierra Wireless Inc (SW.CA) is 5 / 10.