Sequans Communications (NYSE:SQNS) Valuation Spotlight as 1-for-10 Stock Split Approaches

Sequans Communications (NYSE:SQNS) is making waves among investors after announcing a 1-for-10 stock split set for September 17, 2025. If you are assessing your portfolio or considering an entry, this event may have just put Sequans Communications onto your radar. While a stock split does not change the company’s fundamentals, it can influence investor sentiment and often brings about shifts in trading behavior as the share count and price per share are realigned. Stepping back from the immediate news, it is worth noting that Sequans Communications has struggled to gain traction this year. The stock is down over 61% in the past twelve months, and its longer-term chart presents a similar picture with substantial declines stretching over three and five-year horizons. Momentum has remained muted, and while annual revenue growth has been positive, the company’s profitability has moved in the opposite direction, challenging any short-term revival. After such a steep drop and now a stock split, the question remains whether the market sees hidden value that could spark a turnaround, or if today’s price simply reflects challenging fundamentals ahead.

Most Popular Narrative: 74.5% Overvalued

The most widely followed narrative sees Sequans Communications as significantly overvalued, based on projected growth and risk factors.

"Product revenue from the IoT business is expected to ramp significantly through the second half of 2025 and into 2026, as a large pipeline of design wins (approximately $250 million) transitions to mass production. This dynamic aligns with robust adoption of connected devices across industries, and is set to drive meaningful revenue growth. Sequans' launch of new RF transceiver products targeting high-value markets such as defense, drones, and automotive, combined with strong early design win momentum, supports long-term expansion into diversified verticals with premium gross margins and higher earnings potential."

What is the real math fueling this towering fair value? The headline numbers count on a revenue surge and profit margins rarely seen in this corner of tech. Powerful growth forecasts and audacious assumptions about future technology domination support the current narrative. Want to discover which financial drivers set this projection apart? The full story waits in the complete narrative.

Result: Fair Value of $5.50 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the company's aggressive pivot to Bitcoin and ongoing shareholder dilution may quickly shake confidence if expected IP licensing revenues or profit growth do not meet expectations.

Find out about the key risks to this Sequans Communications narrative.

Another View: Checking Against Peers

While some see Sequans Communications as overvalued, comparing its valuation to other companies in the semiconductor industry tells a slightly different story. Is this benchmarked approach highlighting overlooked value, or does it signal hidden risks?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Sequans Communications to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Sequans Communications Narrative

If you have a different perspective or want to test your own ideas, you can easily build a custom narrative from the latest data in just a few minutes. Do it your way

A great starting point for your Sequans Communications research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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