NYSE:SQNS

Stock Analysis Report

Executive Summary

Sequans Communications S.A., together with its subsidiaries, engages in fabless designing, developing, and supplying 4G LTE semiconductor solutions for wireless broadband and Internet of Things applications.

Snowflake

Fundamentals

Limited growth with poor track record.


Similar Companies

Share Price & News

How has Sequans Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-15.6%

SQNS

-0.1%

US Semiconductor

0.9%

US Market


1 Year Return

-44.6%

SQNS

39.4%

US Semiconductor

16.8%

US Market

Return vs Industry: SQNS underperformed the US Semiconductor industry which returned 39.4% over the past year.

Return vs Market: SQNS underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

SQNSIndustryMarket
7 Day-15.6%-0.1%0.9%
30 Day-31.1%8.6%4.5%
90 Day-43.5%13.4%6.2%
1 Year-44.6%-44.6%42.2%39.4%19.4%16.8%
3 Year-71.9%-71.9%83.6%73.2%47.5%38.0%
5 Year-60.8%-60.8%135.2%111.4%62.0%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sequans Communications undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Sequans Communications is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Sequans Communications has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of SQNS’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Sequans Communications regulatory filings.
  • Explore potentially undervalued companies in the Semiconductors industry.

Future Growth

How is Sequans Communications forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

52.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SQNS's revenue (50.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SQNS's revenue (50.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Sequans Communications performed over the past 5 years?

-3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SQNS has high quality earnings.

Growing Profit Margin: SQNS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SQNS is unprofitable, and losses have increased over the past 5 years at a rate of -3% per year.

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

Earnings vs Industry: SQNS is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-14.2%).


Return on Equity

High ROE: SQNS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sequans Communications's financial position?


Financial Position Analysis

Short Term Liabilities: SQNS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SQNS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SQNS has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SQNS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: SQNS has a high level of physical assets or inventory.

Debt Coverage by Assets: SQNS has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: SQNS has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SQNS has less than a year of cash runway if free cash flow continues to reduce at historical rates of -5.6% each year


Next Steps

Dividend

What is Sequans Communications's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if SQNS'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 SQNS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Georges Karam (57yo)

16.8yrs

Tenure

0

Dr. Georges Karam founded Sequans Communications S.A. in 2003 and has been its Chief Executive Officer since 2003. Dr. Karam serves as the President of Sequans Communications S.A. Dr. Karam served as Vice  ...


Management Age and Tenure

6.3yrs

Average Tenure

55yo

Average Age

Experienced Management: SQNS's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

13.0yrs

Average Tenure

56.5yo

Average Age

Experienced Board: SQNS's board of directors are seasoned and experienced ( 13 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.3%.


Management Team

  • Deborah Choate (55yo)

    Chief Financial Officer

    • Tenure: 12.3yrs
  • Didier Dutronc (59yo)

    Chief Marketing Officer

    • Tenure: 3.7yrs
  • Georges Karam (57yo)

    Chairman

    • Tenure: 16.8yrs
  • Bertrand Debray (54yo)

    Chief Operating Officer

    • Tenure: 6.3yrs
  • Nick Taluja (47yo)

    Vice President of Worldwide Sales

    • Tenure: 3.2yrs

Board Members

  • Denis Berlan (69yo)

    Member of Technical Advisory Board

    • Tenure: 0yrs
  • Dominique Pitteloud (57yo)

    Independent Director

    • Tenure: 14.8yrs
  • Alok Sharma (54yo)

    Director

    • Tenure: 8.8yrs
  • Zvi Slonimsky (69yo)

    Independent Director

    • Tenure: 13yrs
  • Andrea Goldsmith (54yo)

    Member of Technical Advisory Board

    • Tenure: 0yrs
  • Georges Karam (57yo)

    Chairman

    • Tenure: 16.8yrs
  • Hubert de Pesquidoux (53yo)

    Independent Director

    • Tenure: 8.7yrs
  • Hikmet Sari

    Member of Technical Advisory Board

    • Tenure: 0yrs
  • Ezio Biglieri

    Member of Technical Advisory Board

    • Tenure: 0yrs
  • Yves Maitre (56yo)

    Lead Independent Director

    • Tenure: 0yrs

Company Information

Sequans Communications S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sequans Communications S.A.
  • Ticker: SQNS
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$53.767m
  • Shares outstanding: 95.16m
  • Website: https://www.sequans.com

Number of Employees


Location

  • Sequans Communications S.A.
  • Portes de la Défense
  • 15-55, Boulevard Charles de Gaulle
  • Paris
  • Ile-de-France
  • 92700
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SQNSNYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDApr 2011
6SQADB (Deutsche Boerse AG)YesSPONSORED ADSDEEURApr 2011

Biography

Sequans Communications S.A., together with its subsidiaries, engages in fabless designing, developing, and supplying 4G LTE semiconductor solutions for wireless broadband and Internet of Things application ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 00:22
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
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.