Sierra Wireless Inc (SW.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:SW - CA8265161064 - Common Stock
40.99 CAD
-0.33 (-0.8%)
Taking everything into account, SW scores 3 out of 10 in our fundamental rating. SW was compared to 13 industry peers in the Communications Equipment industry. SW scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SW has a decent growth rate and is not valued too expensively.
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.
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 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
With a decent Operating Margin value of 2.82%, SW is doing good in the industry, outperforming 61.54% of the companies in the same industry.
SW's Gross Margin of 33.03% is on the low side compared to the rest of the industry. SW is outperformed by 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 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.
Compared to 1 year ago, SW has more shares outstanding
The debt/assets ratio for SW is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.21 indicates that SW is not in any danger for bankruptcy at the moment.
SW has a Altman-Z score of 3.21. This is in the better half of the industry: SW outperforms 69.23% of its industry peers.
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
A Current Ratio of 1.76 indicates that SW should not have too much problems paying its short term obligations.
SW has a Current ratio (1.76) which is in line with 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.
Looking at the Quick ratio, with a value of 1.28, SW is in the better half of 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.
Looking at the last year, SW shows a very strong growth in Revenue. The Revenue has grown by 52.51%.
Measured over the past years, SW shows a decrease in Revenue. The Revenue has been decreasing by -5.11% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.79, SW can be considered very expensive at the moment.
SW's Price/Earnings ratio is in line with the industry average.
SW is valuated rather expensively when we compare the Price/Earnings ratio to 26.31, 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.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, SW is valued a bit cheaper.
| 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
The 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%
5. Dividend
5.1 Amount
SW does not give a dividend.
| 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.