Sierra Wireless Operating Margin vs. Current Valuation

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 Current Valuation vs. Operating Margin 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 third in operating margin category among its peers. It is rated below average in current valuation category among its peers reporting about  38,530,677,915  of Current Valuation per Operating Margin. 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 Current Valuation vs. Operating Margin

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

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Sierra Wireless

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
1.09 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Sierra Current Valuation vs Competition

Sierra Wireless is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is at this time estimated at about 17.14 Billion. Sierra Wireless holds roughly 1.09 Billion in current valuation claiming about 6% of equities under Information Technology industry.

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

Learn to be your own money manager

Our tools can tell you how much better you can do entering a position in Sierra Wireless without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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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.

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Hybrid Mix Funds Theme
Funds or Etfs that are made of portfolios of stocks, bonds, or cash instruments with different maturity horizons and characteristics. The Hybrid Mix Funds theme has 45 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 Hybrid Mix Funds 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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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