Sierra Wireless, Inc. relative valuation is OVERVALUED and it has a fundamental analysis score of 71.
Our analysis is based on comparing Sierra Wireless, Inc. with the following peers – NETGEAR, Inc., CalAmp Corp., Interphase Corporation, Cisco Systems, Inc., LM Ericsson Telefon AB Sponsored ADR Class B, Rogers Communications Inc. Class B, Inseego Corp. and Digi International Inc. (NTGR-US, CAMP-US, INPHQ-US, CSCO-US, ERIC-US, RCI-US, INSG-US and DGII-US).
Sierra Wireless, Inc. has shown good performance overall, both over the last one year (at 144.01%) as well as over the last month (at 49.54%). Share price performance over the last month, though has been lower than that over the last year. But Sierra Wireless, Inc.’s stock has done better than its overall peer group whose performance was 3.72% over the last month.
- Considering peers, relative outperformance over the last year and the last month suggest a leading position.
- It’s current Price/Book of 2.15 is about median in its peer group.
- The market expects SWIR-US to grow faster than its peers and for the company to improve its current ROE.
- SWIR-US‘s median net profit margins and relatively high asset efficiency give it some operating leverage.
- The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
- SWIR-US‘s return on assets has improved from below median to about median among its peers over the last five years.
- The company’s margins are around the peer medians and do not suggest any benefit from a pricing or an operating cost advantage versus peers.
- Compared with the peers chosen, SWIR-US has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
- Our analysis rates Sierra Wireless, Inc. as OVERVALUED relative to its peers.
Share Price Performance
Considering peers, relative outperformance over the last year and the last month suggest a leading position.
SWIR-US‘s share price performance of 144.01% over the last 12 months is above peer median of 51.35%. The 30-day trend in its share price performance of 49.54% is also above the peer median of 3.72% suggesting that this company is a leading performer relative to its peers.
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Sierra Wireless, Inc.’s price of USD 24.45 is greater than CapitalCube’s implied price of USD 19.93. At this level, CapitalCube believes that Sierra Wireless, Inc. is overvalued. Over the last 52 week period, the stock has fluctuated between USD 9.69 and USD 25.25.
Valuation & Peer Metrics
A complete list of valuation metrics is available on the company page.
Sierra Wireless, Inc. engages in the development of device-to-cloud products and services for the Internet of Things. It offers second generation, third generation, and fourth generation embedded wireless modules, and gateways. it operates through the following segments: Original Equipment Manufacturers (OEM) Solutions, Enterprise Solutions, and Cloud and Connectivity Services. The OEM Solutions segment includes embedded cellular modules, software and tools for OEM customers who integrate cellular connectivity into their products and solutions across a broad range of industries, including automotive, transportation, energy, enterprise networking, sales and payment, mobile computing, security, industrial monitoring, field services, residential, healthcare and others. The Enterprise Solutions segment comprises of intelligent routers and gateways along with management tools and applications that enable cellular connectivity for mobile, industrial, and enterprise customers. The Cloud and Connectivity Services consists of cloud services, global cellular connectivity services, and broadband cellular services. The company was founded on May 31, 1993 and is headquartered in Richmond, Canada.
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