Sierra Story

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SWIR -- USA Stock  

USD 16.88  0.65  3.71%

It seems Sierra Wireless will continue to recover much faster as its share price surged up 16.85% today. Sierra Wireless current daily volatility is 5.22 percent, with a beta of 0.33 and an alpha of 0.95 over DOW. While some baby boomers are getting worried about favorable retirement market, it is reasonable to sum up Sierra Wireless. We will evaluate if Sierra Wireless shares are reasonably priced going into February.
Published over a month ago
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Should you keep an eye on Sierra Wireless (NASDAQ:SWIR) management before February?
The company conducts business under Technology sector and is part of Communication Equipment industry. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Sierra Wireless has an asset utilization ratio of 113.38 percent. This connotes that the company is making $1.13 for each dollar of assets. An increasing asset utilization means that Sierra Wireless is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Sierra Wireless, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Sierra Wireless along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Sierra Wireless' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Sierra Wireless in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Sierra Wireless. Your research has to be compared to or analyzed against Sierra Wireless' peers to derive any actionable benefits. When done correctly, Sierra Wireless' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Sierra Wireless IN.

How important is Sierra Wireless's Liquidity

Sierra Wireless financial leverage refers to using borrowed capital as a funding source to finance Sierra Wireless IN ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sierra Wireless financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Sierra Wireless's total debt and its cash.

How Sierra utilizes its cash?

To perform a cash flow analysis of Sierra Wireless, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Sierra Wireless is receiving and how much cash it distributes out in a given period. The Sierra Wireless cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Sierra Wireless Correlation with Peers

Investors in Sierra can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Sierra Wireless IN. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Sierra Wireless and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Sierra is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Sierra for more details

A Deeper Perspective

Sierra Wireless is somewhat reliable given 1 month investment horizon. Sierra Wireless owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.22, which indicates the firm had 0.22% of return per unit of risk over the last month. Our standpoint towards measuring the risk of a stock is to use both market data as well as company specific technical data. We were able to interpolate data for twenty-eight different technical indicators, which can help you to evaluate if expected returns of 1.17% are justified by taking the suggested risk. Use Sierra Wireless Semi Deviation of 1.84, risk adjusted performance of 0.2035, and Coefficient Of Variation of 496.6 to evaluate company specific risk that cannot be diversified away.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Another 3 percent spike for Sierra Wireless

Latest value at risk indicator falls down to -3.6. Possible price gain? As of the 23rd of January, Sierra Wireless has the Semi Deviation of 1.84, risk adjusted performance of 0.2035, and Coefficient Of Variation of 496.6. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Sierra Wireless, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Sierra Wireless, which can be compared to its competition. Please validate Sierra Wireless semi deviation, jensen alpha, as well as the relationship between the Jensen Alpha and semi variance to decide if Sierra Wireless is priced more or less accurately, providing market reflects its prevalent price of 21.5 per share. Given that Sierra Wireless has jensen alpha of 0.9534, we advise you to double-check Sierra Wireless's current market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Sierra Wireless

While some firms within the communication equipment industry are still a little expensive, even after the recent corrections, Sierra Wireless may offer a potential longer-term growth to retail investors. Taking everything into account, as of the 23rd of January 2021, our analysis shows that Sierra Wireless slowly supersedes the market. The enterprise is overvalued and projects very low probability of distress for the next 2 years. However, our primary 30 days buy-or-sell advice on the enterprise is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Sierra Wireless IN. Please refer to our Terms of Use for any information regarding our disclosure principles.

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