SIERRA WIRELESS INC (SWIR)
CA8265161064 - Common Stock
Taking everything into account, SWIR scores 3 out of 10 in our fundamental rating. SWIR was compared to 54 industry peers in the Communications Equipment industry. SWIR may be in some trouble as it scores bad on both profitability and health. SWIR is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SWIR was profitable.
SWIR had a negative operating cash flow in the past year.
SWIR had negative earnings in 4 of the past 5 years.
In multiple years SWIR reported negative operating cash flow during the last 5 years.
1.2 Ratios
The profitability ratios for SWIR are negative, so there is not much use analyzing them.
SWIR has a better Return On Invested Capital (3.80%) than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | 3.8% |
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
SWIR's Operating Margin of 2.82% is in line compared to the rest of the industry. SWIR outperforms 59.68% of its industry peers.
Looking at the Gross Margin, with a value of 33.03%, SWIR is doing worse than 70.97% of the companies in the same industry.
SWIR'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWIR is destroying value.
Compared to 1 year ago, SWIR has more shares outstanding
Compared to 1 year ago, SWIR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.23 indicates that SWIR is not in any danger for bankruptcy at the moment.
SWIR has a better Altman-Z score (3.23) than 74.19% of its industry peers.
SWIR has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
SWIR has a Debt to Equity ratio of 0.19. This is comparable to the rest of the industry: SWIR outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.23 |
ROIC/WACC0.48
WACC8%
2.3 Liquidity
SWIR has a Current Ratio of 1.76. This is a normal value and indicates that SWIR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.76, SWIR perfoms like the industry average, outperforming 46.77% of the companies in the same industry.
SWIR has a Quick Ratio of 1.28. This is a normal value and indicates that SWIR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SWIR (1.28) is comparable to the rest of the 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, SWIR shows a very strong growth in Revenue. The Revenue has grown by 52.51%.
SWIR 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 growth Q2Q144.64%
Revenue 1Y (TTM)52.51%
Revenue growth 3Y-15.83%
Revenue growth 5Y-5.11%
Revenue growth Q2Q101.4%
3.2 Future
SWIR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.72% yearly.
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
A Price/Earnings ratio of 32.97 indicates a quite expensive valuation of SWIR.
Compared to the rest of the industry, the Price/Earnings ratio of SWIR is on the same level as its industry peers.
SWIR's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.83.
Based on the Price/Forward Earnings ratio of 23.56, the valuation of SWIR can be described as rather expensive.
SWIR's Price/Forward Earnings ratio is in line with the industry average.
SWIR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 23.56 |
4.2 Price Multiples
SWIR's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 27.16 |
4.3 Compensation for Growth
SWIR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SWIR'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
SWIR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SIERRA WIRELESS INC
NASDAQ:SWIR (1/12/2023, 7:00:01 PM)
After market: 30.99 0 (0%)30.99
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.97 | ||
| Fwd PE | 23.56 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.82% | ||
| PM (TTM) | N/A | ||
| GM | 33.03% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)190.38%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y241.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)52.51%
Revenue growth 3Y-15.83%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y