TSX:SW

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Sierra Wireless

Executive Summary

Sierra Wireless, Inc., together with its subsidiaries, provides device-to-cloud Internet Of Things (IoT) solutions primarily in North America, Europe, and the Asia Pacific. More Details


Snowflake Analysis

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

How has Sierra Wireless's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.8%

SW

-0.5%

CA Communications

1.1%

CA Market


1 Year Return

-10.0%

SW

-7.2%

CA Communications

-7.0%

CA Market

Return vs Industry: SW underperformed the Canadian Communications industry which returned -5.9% over the past year.

Return vs Market: SW underperformed the Canadian Market which returned -6.3% over the past year.


Shareholder returns

SWIndustryMarket
7 Day-3.8%-0.5%1.1%
30 Day-24.7%-7.0%-1.2%
90 Day5.5%3.8%6.8%
1 Year-10.0%-10.0%-5.3%-7.2%-3.7%-7.0%
3 Year-50.2%-50.2%-13.4%-19.6%10.3%-0.4%
5 Year-52.2%-52.2%4.0%-8.4%43.7%21.6%

Price Volatility Vs. Market

How volatile is Sierra Wireless's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sierra Wireless undervalued compared to its fair value and its price relative to the market?

1.06x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SW's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SW's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SW is unprofitable, so we can't compare its PE Ratio to the CA Communications industry average.

PE vs Market: SW is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SW is good value based on its PB Ratio (1.1x) compared to the CA Communications industry average (1.3x).


Next Steps

Future Growth

How is Sierra Wireless forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

50.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SW is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SW is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SW is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SW's revenue (5.9% per year) is forecast to grow faster than the Canadian market (5.1% per year).

High Growth Revenue: SW's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sierra Wireless performed over the past 5 years?

-63.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SW is currently unprofitable.

Growing Profit Margin: SW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SW is unprofitable, and losses have increased over the past 5 years at a rate of 63.6% per year.

Accelerating Growth: Unable to compare SW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SW is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-24%).


Return on Equity

High ROE: SW has a negative Return on Equity (-19.98%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sierra Wireless's financial position?


Financial Position Analysis

Short Term Liabilities: SW's short term assets ($259.5M) exceed its short term liabilities ($207.2M).

Long Term Liabilities: SW's short term assets ($259.5M) exceed its long term liabilities ($75.3M).


Debt to Equity History and Analysis

Debt Level: SW's debt to equity ratio (4.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SW's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SW has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SW has sufficient cash runway for 2 years if free cash flow continues to reduce at historical rates of 28.4% each year.


Next Steps

Dividend

What is Sierra Wireless's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SW's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Kent Thexton (57 yo)

2.33yrs

Tenure

US$1,032,874

Compensation

Mr. Kent P. Thexton has been President and Chief Executive Officer at Sierra Wireless, Inc. since November 1, 2018. He was Interim President & Chief Executive Officer at Sierra Wireless, Inc., from May 31, ...


CEO Compensation Analysis

Compensation vs Market: Kent's total compensation ($USD1.03M) is about average for companies of similar size in the Canadian market ($USD901.23K).

Compensation vs Earnings: Kent's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kent Thexton
President2.33yrsUS$1.03m0.29%
$ 1.4m
René Link
Chief Marketing Officer and Senior VP of Corporate Strategy & Go-to-Market Operations4.42yrsUS$788.96k0.040%
$ 192.4k
Pierre Teyssier
Senior Vice President of Operations & Purchasing11.5yrsUS$771.81kno data
Marc Overton
Chief Solutions Officer & Senior Vice President of EMEA Sales3.17yrsUS$849.85k0.0062%
$ 30.0k
Samuel Cochrane
Chief Financial Officer0.33yrno datano data
Jason Krause
Chief Operating Officer1.83yrsUS$1.78m0.093%
$ 452.6k
Philippe Guillemette
Chief Technology Officer10yrsUS$874.67k0.036%
$ 176.1k
David Climie
Vice President of Investor Relations6.42yrsno datano data
Jennifer Farac
General Counsel & Corporate Secretary0.42yrno datano data
Stefan Hockley
Vice President of Global Human Resources4.42yrsno datano data
Roy MacLean
Senior Vice President of Customer Experience0.42yrno datano data
William Seefeldt
Senior Vice President of Engineering - OEM Business Solutions5.58yrsUS$540.96kno data

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: SW's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kent Thexton
President2.33yrsUS$1.03m0.29%
$ 1.4m
Gregory Aasen
Lead Independent Directorno dataUS$141.57k0.11%
$ 530.4k
Robin Abrams
Independent Chair of the Board1.92yrsUS$181.61k0.11%
$ 511.2k
Gregory Waters
Independent Director0.50yrno datano data
Mark C. Twaalfhoven
Independent Director0.33yrno data0.055%
$ 267.0k
Martin McCourt
Independent Director0.33yrno data0.014%
$ 66.7k
Karima Bawa
Independent Director0.42yrno datano data
Lori O'Neill
Independent Director1yrUS$104.31kno data
Thomas Sieber
Independent Director6.67yrsUS$147.61k0.15%
$ 721.5k
Russell Jones
Independent Director2yrsUS$141.57k0.041%
$ 200.2k
James Anderson
Independent Director0.42yrno datano data
Raj Talluri
Board Observer0.42yrno datano data

0.5yrs

Average Tenure

58yo

Average Age

Experienced Board: SW's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sierra Wireless, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sierra Wireless, Inc.
  • Ticker: SW
  • Exchange: TSX
  • Founded: 1993
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: CA$485.324m
  • Shares outstanding: 36.35m
  • Website: https://www.sierrawireless.com

Number of Employees


Location

  • Sierra Wireless, Inc.
  • 13811 Wireless Way
  • Richmond
  • British Columbia
  • V6V 3A4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWIRNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDMay 1999
SWTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 1999
WRWDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1999
0QYTLSE (London Stock Exchange)YesCommon SharesGBUSDMay 1999
SWSWX (SIX Swiss Exchange)YesCommon SharesCHCHFMay 1999

Biography

Sierra Wireless, Inc., together with its subsidiaries, provides device-to-cloud Internet Of Things (IoT) solutions primarily in North America, Europe, and the Asia Pacific. The company operates through two ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 07:09
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.