Sierra Wireless Net Income vs. Operating Margin
Please note, there is a significant difference between Sierra Wireless' value and its price as these two are different measures arrived at by different means. Investors typically determine if Sierra Wireless is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sierra Wireless' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.Sierra Wireless Operating Margin vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Sierra Wireless's current stock value. Our valuation model uses many indicators to compare Sierra Wireless value to that of its competitors to determine the firm's financial worth. Sierra Wireless is rated below average in net income category among its peers. It is rated third in operating margin category among its peers . Comparative valuation analysis is a catch-all technique that is used if you cannot value Sierra Wireless by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Sierra Operating Margin vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Sierra Wireless |
| = | (89.02 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Sierra Wireless |
| = | 0.03 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Sierra Operating Margin Comparison
Sierra Wireless is currently under evaluation in operating margin category among its peers.
Sierra Wireless Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Sierra Wireless, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sierra Wireless will eventually generate negative long term returns. The profitability progress is the general direction of Sierra Wireless' change in net profit over the period of time. It can combine multiple indicators of Sierra Wireless, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Sierra Wireless, Inc., together with its subsidiaries, provides device-to-cloud Internet of Things solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 1993 and is headquartered in Richmond, Canada. Sierra Wireless operates under Communication Equipment classification in the United States and is traded on NASDAQ Exchange. It employs 1007 people.
Sierra Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Sierra Wireless. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sierra Wireless position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sierra Wireless' important profitability drivers and their relationship over time.
Sierra Wireless Earnings per Share Projection vs Actual
Use Sierra Wireless in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Sierra Wireless position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sierra Wireless will appreciate offsetting losses from the drop in the long position's value.Sierra Wireless Pair Trading
Sierra Wireless Pair Trading Analysis
The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Microsoft - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Microsoft to buy it.
The correlation of Microsoft is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Microsoft can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Sierra Wireless position
In addition to having Sierra Wireless in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Iron Thematic Idea Now
Iron
Companies involved in production of steel and iron. The Iron theme has 39 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Iron Theme or any other thematic opportunities.
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Check out World Market Map to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Consideration for investing in Sierra Stock
If you are still planning to invest in Sierra Wireless check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Sierra Wireless' history and understand the potential risks before investing.
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