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SIERRA WIRELESS INC (SWIR) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:SWIR - CA8265161064 - Common Stock

30.99 USD
+0.01 (+0.03%)
Last: 1/12/2023, 8:00:01 PM
30.99 USD
0 (0%)
After Hours: 1/12/2023, 8:00:01 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SWIR. SWIR was compared to 48 industry peers in the Communications Equipment industry. SWIR has a bad profitability rating. Also its financial health evaluation is rather negative. SWIR is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

SWIR had positive earnings in the past year.
SWIR had a negative operating cash flow in the past year.
SWIR Yearly Net Income VS EBIT VS OCF VS FCFSWIR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 -50M

1.2 Ratios

SWIR has negative profitability rations, so we won't be analyzing them here.
SWIR has a better Return On Invested Capital (3.80%) than 64.52% of its industry peers.
Industry RankSector 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
SWIR Yearly ROA, ROE, ROICSWIR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 -10 -20 -30

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.
With a Gross Margin value of 33.03%, SWIR is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SWIR 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%
SWIR Yearly Profit, Operating, Gross MarginsSWIR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 10 -10 20 30

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWIR is destroying value.
SWIR has more shares outstanding than it did 1 year ago.
The debt/assets ratio for SWIR is higher compared to a year ago.
SWIR Yearly Shares OutstandingSWIR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 10M 20M 30M
SWIR Yearly Total Debt VS Total AssetsSWIR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 200M 400M 600M

2.2 Solvency

An Altman-Z score of 3.23 indicates that SWIR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.23, SWIR is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
SWIR has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SWIR (0.19) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF N/A
Altman-Z 3.23
ROIC/WACC0.48
WACC8%
SWIR Yearly LT Debt VS Equity VS FCFSWIR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 100M 200M 300M 400M

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.
A Quick Ratio of 1.28 indicates that SWIR should not have too much problems paying its short term obligations.
SWIR has a Quick ratio (1.28) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.76
Quick Ratio 1.28
SWIR Yearly Current Assets VS Current LiabilitesSWIR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 100M 200M 300M

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5

3. Growth

3.1 Past

SWIR 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, SWIR 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

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.
SWIR Yearly Revenue VS EstimatesSWIR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
SWIR Yearly EPS VS EstimatesSWIR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1 -1

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 32.97, the valuation of SWIR can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SWIR.
Compared to an average S&P500 Price/Earnings ratio of 26.31, SWIR is valued a bit more expensive.
SWIR is valuated rather expensively with a Price/Forward Earnings ratio of 23.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWIR is on the same level as its industry peers.
SWIR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.59.
Industry RankSector Rank
PE 32.97
Fwd PE 23.56
SWIR Price Earnings VS Forward Price EarningsSWIR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

SWIR's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 27.16
SWIR Per share dataSWIR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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%

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0

5. Dividend

5.1 Amount

No dividends for SWIR!.
Industry RankSector Rank
Dividend Yield N/A

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SIERRA WIRELESS INC

NASDAQ:SWIR (1/12/2023, 8:00:01 PM)

After market: 30.99 0 (0%)

30.99

+0.01 (+0.03%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-10 2022-11-10/amc
Earnings (Next)02-20 2023-02-20
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.21B
Revenue(TTM)676.88M
Net Income(TTM)-21.57M
Analysts52.31
Price Target30.02 (-3.13%)
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)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 32.97
Fwd PE 23.56
P/S 1.79
P/FCF N/A
P/OCF N/A
P/B 4.41
P/tB 11.58
EV/EBITDA 27.16
EPS(TTM)0.94
EY3.03%
EPS(NY)1.32
Fwd EY4.24%
FCF(TTM)-1.01
FCFYN/A
OCF(TTM)-0.6
OCFYN/A
SpS17.33
BVpS7.03
TBVpS2.68
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 3.8%
ROICexc 5.57%
ROICexgc 14.99%
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 3.23
F-Score3
WACC8%
ROIC/WACC0.48
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 / SWIR FAQ

What is the fundamental rating for SWIR stock?

ChartMill assigns a fundamental rating of 4 / 10 to SWIR.


What is the valuation status for SWIR stock?

ChartMill assigns a valuation rating of 3 / 10 to SIERRA WIRELESS INC (SWIR). This can be considered as Overvalued.


What is the profitability of SWIR stock?

SIERRA WIRELESS INC (SWIR) has a profitability rating of 1 / 10.


What are the PE and PB ratios of SIERRA WIRELESS INC (SWIR) stock?

The Price/Earnings (PE) ratio for SIERRA WIRELESS INC (SWIR) is 32.97 and the Price/Book (PB) ratio is 4.41.


Can you provide the expected EPS growth for SWIR stock?

The Earnings per Share (EPS) of SIERRA WIRELESS INC (SWIR) is expected to grow by 241.12% in the next year.