From Self-Driving Cars to Wearable-Tech, ‘Internet of Things’ is Positioned for Strong Growth
SmallCapPower | March 20, 2017: According to the International Data Corporation (IDC), the Canadian ‘Internet of Things’ (IoT) addressable market will be worth more than $6.5B by 2018. IoT is the concept of having everyday things or devices connected to the internet or cloud, feeding the general public with information, diagnostics, and updates. From monitoring healthcare and restaurant facilities to home-based care for people with a chronic health issue, IoT is going to revolutionize everyday life. Today, we take a look at potentially undervalued IoT small caps that are trading below the industry average EV/Sales multiple of 1.4x.
Sierra Wireless Inc (TSX:SW) – $37.66
Communications & Networking
Sierra Wireless, Inc. offers 2G, 3G and 4G cellular embedded wireless modules and gateways. The Company offers products to original equipment manufacturers (OEMs) and enterprises. Its OEM Solutions segment includes cellular embedded modules, software and tools for OEM customers. The Enterprise Solutions segment includes gateways and management tools and applications that enable cellular connectivity for mobile, industrial and enterprise customers. The Cloud and Connectivity Services segment comprises three areas of operation: its cloud services business; its connectivity services, and its managed wireless broadband services business.
- Market Cap: $1,210.7 million
- Revenue (FY0): $826.80 million
- Cash and Short-Term Investments (FY0, CAD): $138.0 million
- Enterprise Value To Sales : 1.31x
Sandvine Corp (TSX:SVC) – $3.03
Communications & Networking
Sandvine Corporation is engaged in research, design, manufacturing and sale of network policy control solutions for communications service providers. The Company offers various solutions, including business intelligence, traffic optimization, cyber security, subscriber engagement, subscriber services and business services. Its products include Network Analytics, Network Demographics, Traffic Management, Transmission Control Protocol (TCP) Accelerator, Network Security, OutReach, Usage Management, Cloud Services Policy Controller and Traffic Steering Engine.
- Market Cap: $398.7 million
- Revenue (FY0):$162.20 million
- Cash and Short Term Investments (FY0, CAD): $178.6 million
- Enterprise Value To Sales : 1.38x
Wi-LAN Inc (TSX:WIN) – $2.40
Communications & Networking
Wi-LAN Inc. is an intellectual property licensing company. The Company develops, acquires, licenses and enforces a range of technologies that are utilized in a range of markets, including communications and consumer electronics, medical, industrial, semiconductor, automotive and aerospace. The Company is engaged in licensing its patents to companies that sell products utilizing technologies, including Wi-Fi, 3D television, automotive headlight assemblies, semiconductor manufacturing and packaging, medical stent, video streaming, building automation, computer gaming, smart meter monitoring and LED lighting.
- Market Cap: $284.6 million
- Revenue (FY0): $124.70 million
- Cash and Short Term Investments (FY0, CAD): $144.7 million
- Enterprise Value To Sales : 1.39x
Baylin Technologies Inc (TSX:BYL) – $1.93
Communications & Networking
Baylin Technologies Inc. is a provider of wireless antenna solutions. The Company and its subsidiaries operate in the field of research, development, manufacture and sales of a range of antennas and communications solutions for the mobile, networking and wireless infrastructure markets, primarily in the Far East and North America. It designs and manufactures antennas for mobile devices, wireless networking devices and wireless infrastructure.
- Market Cap: $42.3 million
- Revenue (FY0): $85.3 million
- Cash and Short Term Investments (FY0, CAD): $18.5 million
- Enterprise Value To Sales : 0.33x
Patient Home Monitoring Corp (TSXV:PHM) – $0.29
Healthcare Facilities & Services
Patient Home Monitoring Corp. is a healthcare service company that is engaged in providing in-home monitoring equipment, supplies and services to patients in the United States. It operates through three segments: Viemed, PHM and Corporate. The Viemed segment provides non-invasive ventilation equipment and services across the nation. The PHM segment provides in-home monitoring and disease management services for patients. It offers services, such as respiratory disease management, including chronic obstructive pulmonary disease; equipment solutions; in-home sleep testing; sleep apnea and positive airway pressure treatment; oxygen therapy; respiratory equipment rental, and international normalized ratio (INR) self-testing. The Viemed segment focuses on providing in-house sleep testing for sleep apnea sufferers.
- Market Cap: $107.8 million
- Revenue (FY0): $139.20 million
- Cash and Short Term Investments(FY0, CAD): $6.8 million
- Enterprise Value To Sales : 0.90x
