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SIERRA WIRELESS INC (SWIR) Stock Fundamental Analysis

NASDAQ:SWIR - Nasdaq - CA8265161064 - Common Stock - Currency: USD

30.99  +0.01 (+0.03%)

After market: 30.99 0 (0%)

Fundamental Rating

3

Overall SWIR gets a fundamental rating of 3 out of 10. We evaluated SWIR against 49 industry peers in the Communications Equipment industry. Both the profitability and financial health of SWIR have multiple concerns. 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

In the past year SWIR was profitable.
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 has a Operating Margin (2.82%) which is comparable to the rest of the industry.
The Gross Margin of SWIR (33.03%) is worse than 70.97% of its industry peers.
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

SWIR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SWIR has more shares outstanding than it did 1 year ago.
SWIR has a worse debt/assets ratio than last year.
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

SWIR has an Altman-Z score of 3.23. This indicates that SWIR is financially healthy and has little risk of bankruptcy at the moment.
SWIR has a Altman-Z score of 3.23. This is in the better half of the industry: SWIR outperforms 74.19% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that SWIR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, SWIR is in line with its industry, outperforming 50.00% of the companies in the same 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.
Looking at the Current ratio, with a value of 1.76, SWIR is in line with its industry, 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 comparable to the rest of the industry.
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

The Earnings Per Share has grown by an impressive 190.38% over the past year.
SWIR shows a strong growth in Revenue. In the last year, 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 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, SWIR will show a very strong growth in Earnings Per Share. The EPS will grow by 41.72% on average per year.
SWIR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.94% yearly.
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

With a Price/Earnings ratio of 32.97, SWIR can be considered very expensive at the moment.
SWIR's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SWIR to the average of the S&P500 Index (24.83), we can say SWIR is valued slightly more expensively.
SWIR is valuated rather expensively with a Price/Forward Earnings ratio of 23.56.
SWIR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.94, SWIR is valued at the same level.
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 is on the same level as 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.
A more expensive valuation may be justified as SWIR'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%

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0

5. Dividend

5.1 Amount

SWIR does not give a dividend.
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 SectorInformation Technology
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
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
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
ROICexcg growth 3YN/A
ROICexcg 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