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Sierra Wireless

Nasdaq:SWIR
Snowflake Description

Excellent balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SWIR
Nasdaq
CA$406M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

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. The last earnings update was 5 days ago. More info.


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  • Sierra Wireless has significant price volatility in the past 3 months.
SWIR Share Price and Events
7 Day Returns
-25.6%
NasdaqGS:SWIR
4.7%
US Communications
0.9%
US Market
1 Year Returns
-47.2%
NasdaqGS:SWIR
1.1%
US Communications
10.5%
US Market
SWIR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sierra Wireless (SWIR) -25.6% -20.8% -27.1% -47.2% -45.1% -77.9%
US Communications 4.7% 5.9% -3.8% 1.1% 42.8% 65.8%
US Market 0.9% 5.2% 5.4% 10.5% 40.1% 45%
1 Year Return vs Industry and Market
  • SWIR underperformed the Communications industry which returned 1.1% over the past year.
  • SWIR underperformed the Market in United States of America which returned 10.5% over the past year.
Price Volatility
SWIR
Industry
5yr Volatility vs Market
Related Companies

SWIR Value

 Is Sierra Wireless undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Sierra Wireless to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sierra Wireless.

NasdaqGS:SWIR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SWIR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 26.5%) (6.66%))
1.125
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.125 * 5.96%)
9.43%

Discounted Cash Flow Calculation for NasdaqGS:SWIR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Sierra Wireless is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:SWIR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.43%)
2020 25.97 Analyst x3 23.73
2021 29.31 Est @ 12.87% 24.47
2022 32.19 Est @ 9.83% 24.56
2023 34.67 Est @ 7.7% 24.17
2024 36.82 Est @ 6.21% 23.46
2025 38.73 Est @ 5.17% 22.55
2026 40.44 Est @ 4.44% 21.52
2027 42.03 Est @ 3.92% 20.43
2028 43.53 Est @ 3.57% 19.34
2029 44.97 Est @ 3.31% 18.25
Present value of next 10 years cash flows $222.00
NasdaqGS:SWIR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $44.97 × (1 + 2.73%) ÷ (9.43% – 2.73%)
$689.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $689.03 ÷ (1 + 9.43%)10
$279.69
NasdaqGS:SWIR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $222.00 + $279.69
$501.69
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $501.69 / 36.19
$13.86
NasdaqGS:SWIR Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:SW)
1.322
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $13.86 x 1.322
CA$18.33
Non-primary Listing Adjustment Factor 1 share in NasdaqGS:SWIR represents 0.75468x of TSX:SW
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.75468x
Value per Share
(Listing Adjusted, USD)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 18.33 x 0.75468
$13.83
Value per share (USD) From above. $13.83
Current discount Discount to share price of $8.46
= -1 x ($8.46 - $13.83) / $13.83
38.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Sierra Wireless is available for.
Intrinsic value
39%
Share price is $8.46 vs Future cash flow value of $13.83
Current Discount Checks
For Sierra Wireless to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Sierra Wireless's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Sierra Wireless's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Sierra Wireless's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Sierra Wireless's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SWIR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $-1.76
TSX:SW Share Price ** TSX (2019-11-08) in CAD CA$11.21
TSX:SW Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.756 $8.48
United States of America Communications Industry PE Ratio Median Figure of 30 Publicly-Listed Communications Companies 24.34x
United States of America Market PE Ratio Median Figure of 2,915 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sierra Wireless.

NasdaqGS:SWIR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:SW Share Price ÷ EPS (both in USD)

= 8.48 ÷ -1.76

-4.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sierra Wireless is loss making, we can't compare its value to the US Communications industry average.
  • Sierra Wireless is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Sierra Wireless's expected growth come at a high price?
Raw Data
NasdaqGS:SWIR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -4.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
75.9%per year
United States of America Communications Industry PEG Ratio Median Figure of 19 Publicly-Listed Communications Companies 1.44x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Sierra Wireless, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Sierra Wireless's assets?
Raw Data
NasdaqGS:SWIR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $10.71
TSX:SW Share Price * TSX (2019-11-08) in CAD CA$11.21
TSX:SW Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.756 $8.48
United States of America Communications Industry PB Ratio Median Figure of 61 Publicly-Listed Communications Companies 1.85x
United States of America Market PB Ratio Median Figure of 5,041 Publicly-Listed Companies 1.74x
NasdaqGS:SWIR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:SW Share Price ÷ Book Value per Share (both in USD)

= 8.48 ÷ 10.71

0.79x

* Primary Listing of Sierra Wireless.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Sierra Wireless is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess Sierra Wireless's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Sierra Wireless has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SWIR Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
75.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sierra Wireless expected to grow at an attractive rate?
  • Unable to compare Sierra Wireless's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Sierra Wireless's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Sierra Wireless's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SWIR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SWIR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 75.9%
NasdaqGS:SWIR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 4.3%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SWIR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SWIR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 803 -4 2
2020-12-31 727 37 -21 8
2019-12-31 710 15 -73 8
2019-11-10
NasdaqGS:SWIR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 741 36 -63
2019-06-30 770 30 -44
2019-03-31 781 26 -27
2018-12-31 794 47 -25
2018-09-30 777 38 -25
2018-06-30 745 24 -22
2018-03-31 716 13 -4
2017-12-31 691 -1 5
2017-09-30 670 -15 24
2017-06-30 651 20 21
2017-03-31 634 36 15
2016-12-31 615 47 16

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Sierra Wireless is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Sierra Wireless's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SWIR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Sierra Wireless Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SWIR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 -0.11 -0.11 -0.11 1.00
2020-12-31 -0.18 0.04 -0.58 3.00
2019-12-31 -2.02 -2.02 -2.02 1.00
2019-11-10
NasdaqGS:SWIR Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 -1.76
2019-06-30 -1.23
2019-03-31 -0.76
2018-12-31 -0.68
2018-09-30 -0.70
2018-06-30 -0.64
2018-03-31 -0.11
2017-12-31 0.14
2017-09-30 0.74
2017-06-30 0.64
2017-03-31 0.46
2016-12-31 0.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Sierra Wireless will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Sierra Wireless's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Sierra Wireless has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SWIR Past Performance

  How has Sierra Wireless performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Sierra Wireless's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Sierra Wireless does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Sierra Wireless's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Sierra Wireless's 1-year growth to the US Communications industry average as it is not currently profitable.
Earnings and Revenue History
Sierra Wireless's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sierra Wireless Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SWIR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 740.61 -63.45 143.88 87.69
2019-06-30 770.01 -44.26 145.16 89.76
2019-03-31 780.54 -27.47 150.38 92.04
2018-12-31 793.60 -24.61 150.17 93.71
2018-09-30 777.09 -24.68 145.57 94.01
2018-06-30 744.87 -21.91 136.91 91.73
2018-03-31 716.39 -3.75 124.32 87.81
2017-12-31 690.73 4.52 118.04 82.65
2017-09-30 670.22 23.75 112.98 78.87
2017-06-30 651.22 20.63 111.40 75.84
2017-03-31 634.03 14.58 108.45 73.61
2016-12-31 615.02 15.65 104.83 72.68
2016-09-30 597.43 -0.72 102.15 73.57
2016-06-30 598.45 4.34 98.47 73.54
2016-03-31 600.19 7.70 96.06 73.71
2015-12-31 607.80 -2.67 94.47 74.02
2015-09-30 612.03 -3.99 92.45 76.49
2015-06-30 600.72 -10.18 90.81 78.39
2015-03-31 577.77 -22.50 89.37 80.01
2014-12-31 548.52 -16.85 87.50 80.94
2014-09-30 518.05 -17.10 85.35 79.00
2014-06-30 487.05 -13.12 83.46 76.92
2014-03-31 461.62 -11.62 80.57 75.05
2013-12-31 441.86 -15.55 77.35 73.11
2013-09-30 432.66 1.92 75.73 70.33
2013-06-30 420.58 -2.77 72.57 68.41
2013-03-31 406.39 -4.90 70.54 64.94
2012-12-31 397.32 -4.20 69.84 61.79

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Sierra Wireless has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Sierra Wireless has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Sierra Wireless improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Sierra Wireless's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Sierra Wireless has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SWIR Health

 How is Sierra Wireless's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Sierra Wireless's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Sierra Wireless is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Sierra Wireless's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Sierra Wireless's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are -36.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Sierra Wireless Company Filings, last reported 1 month ago.

NasdaqGS:SWIR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 387.54 0.00 86.90
2019-06-30 407.63 0.00 87.15
2019-03-31 431.87 0.00 76.05
2018-12-31 444.13 0.00 91.00
2018-09-30 446.68 0.00 69.44
2018-06-30 447.41 0.00 75.61
2018-03-31 461.21 0.00 72.48
2017-12-31 467.52 0.00 67.16
2017-09-30 389.99 0.00 75.89
2017-06-30 381.82 0.00 90.72
2017-03-31 365.90 0.00 94.09
2016-12-31 361.58 0.00 104.44
2016-09-30 354.01 0.00 112.05
2016-06-30 354.97 0.00 98.43
2016-03-31 356.00 0.00 86.12
2015-12-31 358.30 0.00 93.94
2015-09-30 362.34 0.00 88.37
2015-06-30 357.33 0.00 96.47
2015-03-31 347.26 0.00 99.56
2014-12-31 356.86 0.00 207.06
2014-09-30 353.07 0.00 196.09
2014-06-30 352.02 0.00 168.42
2014-03-31 363.49 0.00 151.34
2013-12-31 363.00 0.00 179.89
2013-09-30 356.96 0.00 188.44
2013-06-30 355.47 0.00 176.57
2013-03-31 293.48 0.00 55.92
2012-12-31 298.06 0.00 63.65
  • Sierra Wireless's level of debt (-2.1%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Sierra Wireless's debt level has increased without past 5-year debt data.
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.

  • Whilst loss making Sierra Wireless has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Sierra Wireless has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 12.9% per year.
X
Financial health checks
We assess Sierra Wireless's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sierra Wireless has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SWIR Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Sierra Wireless dividends.
If you bought $2,000 of Sierra Wireless shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Sierra Wireless's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Sierra Wireless's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SWIR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1944 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SWIR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
2019-11-10

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Sierra Wireless has not reported any payouts.
  • Unable to verify if Sierra Wireless's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Sierra Wireless's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Sierra Wireless has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Sierra Wireless's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Sierra Wireless afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Sierra Wireless has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SWIR Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kent Thexton
COMPENSATION $4,755,432
AGE 56
TENURE AS CEO 1.5 years
CEO Bio

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, 2018 to November 1, 2018 and has been its Director since May 31, 2018. Mr. Thexton is a Co-Founder of US Mobile Virtual Network Operator (MVNO) i-wireless. He served as a Managing Partner at ScaleUP Ventures since April 2016 until October 31, 2018. Mr. Thexton serves as the Chief Executive Officer of Seven Technologies. He is a Co-Founder of i-wireless. Mr. Thexton served as an Independent Director of Sierra Wireless Inc. since March 14, 2005 until May 2018. Mr. Thexton was Chairman of the Board at Sierra Wireless Inc. since February 4, 2016 until October 16, 2018. Mr. Thexton served as the Managing Director of OMERS Ventures from January 2014 to 2016 and was responsible for leading investment activities and supporting portfolio companies in the North American market focusing on high-growth companies in the technology, media and telecommunications sectors. He has 25 years of international wireless telecommunications experience, including executive appointments with some of the largest mobile operators worldwide. He led seed investment in League. He product market fit and now raising series A at significant value uplift. He also led series B in Dogvacay. He led growth round in IoT leader Mojix. He has been a Partner at Oak Ventures. He led series B in Interaxon and also led inside round at Hopper pivot. Mr. Thexton served as the Chief Executive Officer of Seven Networks, Inc., from April 2005 to January 1, 2007 and served as its President. He served as an Advisor of Tagga Media, Inc. He has played an integral role in growing, scaling and adding value to numerous companies which have successfully been acquired or attracted investment capital. From 1998 to November 2001, he served as President of the Genie division of British Telecom from 2000 to 2001 and Sales & Marketing Director of BT Cellnet from 1998 to 2000. Mr. Thexton joined O2 UK in 1998 as Marketing Director. He served as the Managing Director of O2 Online since 2000. He served eight years in the Canadian mobile industry and served as the Chief Operating Officer and Executive Vice President of Rogers AT&T Wireless. He had been worked at Northern Telecom and Bell Canada. Mr. Thexton joined Seven Networks, Inc. in April 2004 and served as its Co-Chief Executive Officer from 2004 April to April 2005. He served as the President of O2 Online since 2001 and was responsible for overall group marketing strategy and brand execution across the organization. Mr. Thexton served as the Chief Data and Marketing Officer of Telefónica Europe Plc from July 2001 to March 2004. He served as a Non-Executive Chairman of Optiva Inc. until February 14, 2017. His operational experience includes helping lead the demerger of mobile businesses O2 Group plc from British Telecom as Chief Marketing and Product Officer. Mr. Thexton had oversight of 1000 employees and achieved significant growth in the company's mobile data revenue and online division. He has 25 years of experience in the global tech and telecom sectors and has significant expertise as both an operator and founder, with extensive knowledge in the mobile and technology markets. He has played an integral role in growing, scaling and adding value to numerous companies which have successfully been acquired or attracted investment capital. Mr. Thexton serves as the Chairman of i-wireless LLC and Seven Technologies. He served as the Non-Executive Chairman of Redknee Solutions Inc. until February 15, 2017. He served as an Executive Chairman of Seven Networks, Inc. since January 1, 2007. Mr. Thexton has been a Director of InteraXon, Inc. since May 12, 2015. He has been a Director of Mobidia Technology, Inc. since April 2009 and Fusebill Inc. since September 12, 2009. He serves as a Non-Executive Director of two private Canadian companies, Avista and Casero. He has been a Director of Mojix Inc. since April 6, 2015. He serves as an Outside Director of Melodeo, Inc. and Solect. He serves as Director of O2 Company plc. He served as a Director of QuickPlay Media Inc. Mr. Thexton served as a Director of AudienceView Ticketing Corporation. He served as an Independent Non Executive Director of Redknee Solutions Inc. since November 1, 2006 until February 15, 2017. He served as a Director of PNI Digital Media ULC (Former Name: PNI Digital Media Inc.) from February 4, 2004 to June 17, 2005 and Seven Networks, Inc. since April 2004. He served as an Executive Director of Telefónica Europe Plc from April 1, 2003 to February 4, 2004. He served as Director of Redknee Inc. since 2004. Mr. Thexton holds an M.B.A. and Bachelor of Science in Electrical Engineering from the University of Western Ontario.

CEO Compensation
  • Kent's compensation has increased whilst company is loss making.
  • Kent's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Sierra Wireless management team in years:

3.6
Average Tenure
54.5
Average Age
  • The tenure for the Sierra Wireless management team is about average.
Management Team

Kent Thexton

TITLE
President
COMPENSATION
$5M
AGE
56
TENURE
1.5 yrs

David McLennan

TITLE
CFO, Chief Transformation Officer & Corporate Secretary
COMPENSATION
$951K
AGE
57
TENURE
15.7 yrs

Jason Krause

TITLE
Chief Operating Officer
COMPENSATION
$2M
TENURE
1.8 yrs

Marc Overton

TITLE
Chief Solutions Officer
COMPENSATION
$738K
TENURE
2.3 yrs

Philippe Guillemette

TITLE
Chief Technology Officer
COMPENSATION
$875K
AGE
53
TENURE
9.2 yrs

David Climie

TITLE
Vice President of Investor Relations
TENURE
5.6 yrs

René Link

TITLE
Chief Marketing Officer & Senior VP of Corporate Strategy & Go-to-Market Operations
COMPENSATION
$879K
TENURE
3.6 yrs

Marc Osgoodby

TITLE
Senior Vice President of Global Sales
TENURE
0.8 yrs

Stefan Hockley

TITLE
Vice President of Global Human Resources
TENURE
3.6 yrs

Pierre Teyssier

TITLE
Senior Vice President of Operations & Purchasing
AGE
53
TENURE
10.7 yrs
Board of Directors Tenure

Average tenure and age of the Sierra Wireless board of directors in years:

3.5
Average Tenure
57
Average Age
  • The tenure for the Sierra Wireless board of directors is about average.
Board of Directors

Robin Abrams

TITLE
Chairman & Lead Independent Director
COMPENSATION
$157K
AGE
68
TENURE
1.1 yrs

Kent Thexton

TITLE
President
COMPENSATION
$5M
AGE
56
TENURE
14.7 yrs

Paul Cataford

TITLE
Independent Director
COMPENSATION
$157K
AGE
55
TENURE
21.3 yrs

Greg Aasen

TITLE
Independent Director
COMPENSATION
$146K
AGE
63
TENURE
21.9 yrs

Thomas Sieber

TITLE
Independent Director
COMPENSATION
$147K
AGE
57
TENURE
5.8 yrs

Russ Jones

TITLE
Independent Director
COMPENSATION
$124K
AGE
60
TENURE
1.2 yrs

Joy Chik

TITLE
Independent Director
COMPENSATION
$115K
AGE
43
TENURE
1.1 yrs

Lori O’Neill

TITLE
Independent Director
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Sierra Wireless individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Sep 19 Sell August Schieler Individual 26. Nov 18 26. Nov 18 -3,298 $15.97 $-52,669
27. Aug 19 Buy Kent Thexton Individual 27. Aug 19 27. Aug 19 8,000 $10.24 $81,919
26. Aug 19 Buy Kent Thexton Individual 26. Aug 19 26. Aug 19 7,400 $10.58 $78,279
23. Aug 19 Sell Paul Cataford Individual 21. Aug 19 21. Aug 19 -4,931 $11.30 $-55,253
30. Jul 19 Sell Marc Osgoodby Individual 14. May 19 14. May 19 -2,034 $9.90 $-20,129
30. Jul 19 Sell Marc Overton Individual 28. Feb 19 28. Feb 19 -1,848 $9.68 $-17,895
30. Jul 19 Sell Kent Thexton Individual 31. May 19 31. May 19 -15,000 $12.07 $-181,039
21. May 19 Sell August Schieler Individual 17. May 19 17. May 19 -2,441 $13.24 $-32,309
15. May 19 Buy Russell Jones Individual 15. May 19 15. May 19 3,800 $13.29 $50,517
28. Feb 19 Buy Kent Thexton Individual 28. Feb 19 28. Feb 19 4,000 $12.76 $51,037
21. Feb 19 Buy Kent Thexton Individual 20. Feb 19 20. Feb 19 6,000 $12.50 $75,025
20. Feb 19 Buy René Link Individual 19. Feb 19 19. Feb 19 8,000 $12.67 $101,320
19. Feb 19 Sell August Schieler Individual 08. Feb 19 08. Feb 19 -1,097 $15.14 $-16,609
X
Management checks
We assess Sierra Wireless's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Sierra Wireless has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SWIR News

Simply Wall St News

Is Sierra Wireless Inc (NASDAQ:SWIR) As Financially Strong As Its Balance Sheet Indicates?

The direct benefit for Sierra Wireless Inc (NASDAQ:SWIR), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … View our latest analysis for Sierra Wireless Is SWIR growing fast enough to value financial flexibility over lower cost of capital? … There are well-known benefits of including debt in capital structure, primarily a lower cost of capital.

Simply Wall St -

Is It Time To Buy Sierra Wireless Inc (SWIR)?

Currently, SWIR appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. … If you’ve been keeping tabs on SWIR for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. … The stock appears to be trading at fair value, which means there’s less benefit from mispricing.

Simply Wall St -

SWIR Company Info

Description

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. Its Original Equipment Manufacturer (OEM) Solutions segment offers embedded cellular modules, short range wireless modules, global navigation satellite system modules, software, and tools to integrate wireless connectivity into various products and solutions for OEM customers, including the embedded wireless modules product portfolio; cloud-based remote device and data management solutions; and Legato, an open source Linux-based platform. It also offers professional services to OEM customers during their product development and launch process. Its Enterprise Solutions segment provides intelligent routers and gateways, as well as security and device management solutions, and professional services. Its Internet of Things (IoT) Services segment offers cellular connectivity services, which include smart subscriber identity module and core network platforms; a cloud based platform to deploy and manage IoT subscriptions, devices, and applications over the air; managed broadband cellular services, which include a combination of hardware, connectivity services, and cloud services; and specific vertical market IoT solutions that include segments, such as security, asset tracking and asset optimization. The company serves automotive, transportation, enterprise networking, energy, sales and payment, mobile computing, security, industrial monitoring, field services, residential, healthcare, public safety, retail, industrial, manufacturing, and cleantech industries, as well as financial enterprises. It serves through direct channels; and indirect channels, including OEMs, distributors, value-added resellers, and mobile network operators. The company was founded in 1993 and is headquartered in Richmond, Canada.

Details
Name: Sierra Wireless, Inc.
SWIR
Exchange: NasdaqGS
Founded: 1993
CA$306,882,739
36,187,525
Website: http://www.sierrawireless.com
Address: Sierra Wireless, Inc.
13811 Wireless Way,
Richmond,
British Columbia, V6V 3A4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX SW Common Shares The Toronto Stock Exchange CA CAD 10. May 1999
NasdaqGS SWIR Common Shares Nasdaq Global Select US USD 10. May 1999
DB WRW Common Shares Deutsche Boerse AG DE EUR 10. May 1999
SWX SW Common Shares SIX Swiss Exchange CH CHF 10. May 1999
Number of employees
Current staff
Staff numbers
1,400
Sierra Wireless employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/10 23:41
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/11/06
Last earnings filing: 2019/11/05
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.