Sequans Communications S A (SQNS) AI Stock Analysis

• Market Cap: $52.80M
• Dividend Yield: N/A
• Average Volume (3M): 67.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: 9.36%
• EPS Growth: N/A
• Country: US
• Employees: 264
• Sector: Technology
• Sector Strength: 43
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 25,140,892
• 10 Day Avg. Volume: 62,574
• 30 Day Avg. Volume: 67,794
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.72
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.50
• Price Target Upside: 258.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Sequans Communications S A demonstrates a promising turnaround with improved profitability and strategic deals, such as the Qualcomm transaction. However, persistent revenue and cash flow challenges, coupled with mixed technical indicators and valuation concerns, suggest a cautious outlook.

Sequans Communications S A Business Overview & Revenue Model

Company Description

Sequans Communications S.A. designs, develops, and supplies cellular semiconductor solutions for massive and broadband Internet of Things (IoT) markets in Taiwan, South Korea, China, rest of Asia, the United States, and internationally. It offers a set of 5G/4G chips and modules for non-smartphone devices. The company provides a comprehensive product portfolio for 5G/4G massive IoT applications based on its Monarch LTE-M/NB-IoT and Calliope Cat 1 chip platforms featuring low power consumption, a set of integrated functionalities, and deployment capability. It also offers a product portfolio for 5G/4G broadband and critical IoT applications based on its Cassiopeia Cat 4/Cat 6 and Taurus 5G chip platforms optimized for residential, enterprise, and industrial applications. The company serves OEMs and ODMs Customers, as well as 4G and 5G wireless carriers. Sequans Communications S.A. was incorporated in 2003 and is headquartered in Paris, France.

How the Company Makes Money

Sequans Communications generates revenue primarily through the sale of its semiconductor solutions, which are integrated into a variety of devices requiring wireless connectivity. The company's key revenue streams include direct sales of chipsets to original equipment manufacturers (OEMs) and module makers, as well as licensing its technology and intellectual property to partners. Additionally, Sequans engages in strategic partnerships with major tech companies and network operators to expand its market reach and enhance its product offerings. These collaborations can lead to increased sales volume and the adoption of Sequans' technology in emerging markets and applications, contributing significantly to its earnings.

Sequans Communications S A Financial Statement Overview

Summary

Sequans Communications S A has shown improvements in profitability, transitioning to a positive net income and improved gross profit margin. Balance sheet strength is evident with positive stockholders' equity and improved debt-to-equity ratio, although revenue and cash flow challenges persist.

Income Statement

Sequans Communications S A showed a significant turnaround in profitability with net income rising from a negative $40.99 million in 2023 to a positive $57.04 million in 2024. Gross profit margin has improved to 75.56% in 2024 from 71.84% in 2023, and the net profit margin increased substantially. However, revenue growth remains a concern, showing a decrease from $60.55 million in 2022 to $36.76 million in 2024, indicating a declining trend over the years.

Balance Sheet

The balance sheet of Sequans Communications S A indicates a healthier position in 2024 with positive stockholders' equity of $55.18 million, compared to negative equity in previous years. The debt-to-equity ratio improved significantly, reflecting better leverage management. However, the equity ratio at 52.43% indicates moderate reliance on external financing, and total assets have slightly declined over the years.

Cash Flow

The cash flow statement reveals challenges in cash management, with a negative free cash flow of $22.69 million in 2024, though improved from $36.83 million in 2023. Operating cash flow remains negative, indicating ongoing operational cash constraints, while significant investing cash flow in 2024 suggests asset divestment or investment changes.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
36.76M	33.62M	60.55M	50.88M	50.92M
	Gross Profit
27.77M	24.14M	42.88M	27.19M	23.45M
	EBIT
69.53M	-29.84M	-3.84M	-18.32M	-24.69M
	EBITDA
37.46M	-15.91M	11.83M	-4.41M	-34.38M
	Net Income Common Stockholders
57.04M	-40.99M	-9.01M	-20.28M	-54.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
62.09M	5.71M	5.67M	4.83M	7.57M
	Total Assets
105.26M	109.17M	98.75M	89.56M	87.32M
	Total Debt
5.38M	80.69M	65.14M	66.07M	69.42M
	Net Debt
-3.71M	74.98M	59.47M	61.24M	61.85M
	Total Liabilities
50.08M	115.24M	96.65M	113.87M	124.45M
	Stockholders Equity
55.18M	-6.07M	2.10M	-24.31M	-37.13M
Cash Flow		Free Cash Flow
-22.69M	-36.83M	-24.50M	-37.38M	-33.16M
	Operating Cash Flow
-19.37M	-7.26M	-1.84M	-8.76M	-19.39M
	Investing Cash Flow
93.70M	-24.44M	-26.05M	-19.37M	-24.76M
	Financing Cash Flow
-70.94M	31.74M	28.71M	25.38M	37.62M

Sequans Communications S A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SQNS, the sentiment is Negative. The current price of 2.09 is below the 20-day moving average (MA) of 2.26, below the 50-day MA of 2.61, and below the 200-day MA of 2.37, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 33.31 is Neutral, neither overbought nor oversold. The STOCH value of 14.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SQNS.

Sequans Communications S A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QCOM	76 Outperform	$168.91B	16.32	41.96%	2.18%	12.13%	36.17%
AVGO	75 Outperform	$795.19B	81.57	14.85%	1.28%	40.30%	-22.79%
ADI	71 Outperform	$100.02B	64.31	4.43%	1.82%	-19.28%	-44.00%
NXPI	67 Neutral	$48.20B	19.32	28.16%	2.13%	-4.99%	-9.18%
SWKS	63 Neutral	$10.31B	19.65	8.34%	4.33%	-12.91%	-42.12%
SQNS	58 Neutral	$52.80M	―	231.78%	―	9.36%	―
Sector *	57 Neutral	$20.87B	10.40	-13.96%	2.52%	4.47%	-23.34%