TSX:SW

Stock Analysis Report

Sierra Wireless

Executive Summary

Sierra Wireless, Inc., together with its subsidiaries, manufactures and sells cellular wireless devices, and provide services in the wireless communications and information technology industry in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.

Snowflake

Fundamentals

Flawless balance sheet and slightly 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


Market Performance


7 Day Return

4.7%

SW

2.0%

CA Communications

0.1%

CA Market


1 Year Return

-39.5%

SW

-12.0%

CA Communications

1.6%

CA Market

Return vs Industry: SW underperformed the Canadian Communications industry which returned -12% over the past year.

Return vs Market: SW underperformed the Canadian Market which returned 1.6% over the past year.


Shareholder returns

SWIndustryMarket
7 Day4.7%2.0%0.1%
30 Day-0.9%-0.4%-2.9%
90 Day-4.2%-2.1%-1.4%
1 Year-39.5%-39.5%-11.5%-12.0%5.2%1.6%
3 Year-17.3%-17.3%3.6%1.5%13.8%3.7%
5 Year-50.7%-50.7%-18.1%-21.6%25.3%7.2%

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?

37.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SW (CA$14.71) is trading below our estimate of fair value (CA$23.47)

Significantly Undervalued: SW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SW is unprofitable, so we can't compare its PE Ratio to the 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

Low 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 (1x) compared to the CA Communications industry average (1.2x).


Next Steps

Future Growth

How is Sierra Wireless forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

130.5%

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 (8.8% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: SW's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-14.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SW is unprofitable, and losses have increased over the past 5 years at a rate of -14.3% 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 (22.8%).


Return on Equity

High ROE: SW has a negative Return on Equity (-10.86%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SW is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SW is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Sierra Wireless's financial position?


Financial Position Analysis

Short Term Liabilities: SW's short term assets ($309.0M) exceeds its short term liabilities ($203.8M)

Long Term Liabilities: SW's short term assets (309.0M) exceeds its long term liabilities (69.7M)


Debt to Equity History and Analysis

Debt Level: SW is debt free.

Reducing Debt: SW has not had any debt for past 5 years.


Balance Sheet

Inventory Level: SW has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SW's debt is covered by short term assets.


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: Whilst unprofitable SW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SW is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -33.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Sierra Wireless's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Kent Thexton (56yo)

1.4yrs

Tenure

US$4,755,432

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Kent's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.5yrs

Average Tenure

54.5yo

Average Age

Experienced Management: SW's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

57yo

Average Age

Experienced Board: SW's board of directors are considered experienced (3.4 years average tenure).


Insider Trading

Insider Buying: SW insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$69,67906 Sep 19
August Schieler
EntityIndividual
Shares3,298
Max PriceUS$21.13
BuyUS$108,80027 Aug 19
Kent Thexton
EntityIndividual
Role
Chief Executive Officer
President
Shares8,000
Max PriceUS$13.60
BuyUS$103,89626 Aug 19
Kent Thexton
EntityIndividual
Role
Chief Executive Officer
President
Shares7,400
Max PriceUS$14.04
SellUS$73,34023 Aug 19
Paul Cataford
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,931
Max PriceUS$15.00
SellUS$27,11330 Jul 19
Marc Osgoodby
EntityIndividual
Role
Head of Sales
Senior Vice President of Global Sales
Shares2,034
Max PriceUS$13.33
SellUS$23,56230 Jul 19
Marc Overton
EntityIndividual
Role
Senior Key Executive
Chief Solutions Officer
Shares1,848
Max PriceUS$12.75
SellUS$244,70030 Jul 19
Kent Thexton
EntityIndividual
Role
Chief Executive Officer
President
Shares15,000
Max PriceUS$16.32
SellUS$43,48621 May 19
August Schieler
EntityIndividual
Shares2,441
Max PriceUS$17.81
BuyUS$67,88715 May 19
Russell Jones
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,800
Max PriceUS$17.87
BuyUS$67,20028 Feb 19
Kent Thexton
EntityIndividual
Role
Chief Executive Officer
President
Shares4,000
Max PriceUS$16.80
BuyUS$98,70021 Feb 19
Kent Thexton
EntityIndividual
Role
Chief Executive Officer
President
Shares6,000
Max PriceUS$16.45
BuyUS$134,31720 Feb 19
René Link
EntityIndividual
Role
Head of Marketing
Chief Marketing Officer & Senior VP of Corporate Strategy & Go-to-Market Operations
Shares8,000
Max PriceUS$16.79
SellUS$22,05819 Feb 19
August Schieler
EntityIndividual
Shares1,097
Max PriceUS$20.11

Ownership Breakdown


Management Team

  • Kent Thexton (56yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$4.76m
  • Philippe Guillemette (53yo)

    Chief Technology Officer

    • Tenure: 9.1yrs
    • Compensation: US$874.67k
  • David McLennan (57yo)

    CFO, Chief Transformation Officer & Corporate Secretary

    • Tenure: 15.6yrs
    • Compensation: US$950.55k
  • Marc Overton

    Chief Solutions Officer

    • Tenure: 2.3yrs
    • Compensation: US$737.56k
  • Pierre Teyssier (53yo)

    Senior Vice President of Operations & Purchasing

    • Tenure: 10.6yrs
  • David Climie

    Vice President of Investor Relations

    • Tenure: 5.5yrs
  • Jason Krause

    Chief Operating Officer

    • Tenure: 1.8yrs
    • Compensation: US$1.78m
  • René Link

    Chief Marketing Officer & Senior VP of Corporate Strategy & Go-to-Market Operations

    • Tenure: 3.5yrs
    • Compensation: US$878.60k
  • Stefan Hockley

    Vice President of Global Human Resources

    • Tenure: 3.5yrs
  • Marc Osgoodby

    Senior Vice President of Global Sales

    • Tenure: 0.8yrs

Board Members

  • Paul Cataford (55yo)

    Independent Director

    • Tenure: 21.3yrs
    • Compensation: US$156.96k
  • Greg Aasen (63yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$145.66k
  • Robin Abrams (68yo)

    Chairman & Lead Independent Director

    • Tenure: 1yrs
    • Compensation: US$157.33k
  • Kent Thexton (56yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$4.76m
  • Lori O’Neill

    Independent Director

    • Tenure: 0.08yrs
  • Thomas Sieber (57yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$146.66k
  • Russ Jones (60yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$123.63k
  • Joy Chik (43yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$115.37k

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$531.990m
  • Shares outstanding: 36.17m
  • 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
SWSWX (SIX Swiss Exchange)YesCommon SharesCHCHFMay 1999

Biography

Sierra Wireless, Inc., together with its subsidiaries, manufactures and sells cellular wireless devices, and provide services in the wireless communications and information technology industry in the Ameri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:41
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.