MeritValue

SEQUANS COMMUNICATIONS

SQNSdata completeness 63%10 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'totalDebt'

The thesis, from the filings

SEQUANS COMMUNICATIONS earns about -162% on equity, but has diluted owners by 88% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2020FY 2021FY 2022FY 2023FY 2024
Revenue—————
Net income−$54.5M1−$20.3M2−$9.01M3−$41M3$57.6M3
Operating cash flow−$19.4M4−$8.51M5−$1.84M6−$7.26M6−$19.5M6
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$7.57M7$4.84M8$5.67M8$5.71M8$9.09M8
Diluted shares133.9M151.4M193.4M246.3M251.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$2.2
your share of equity
Profit it earned you last year
$2.29
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $2.2 of net worth that earned you $2.29 last year.

iii. Is this a good business?
Moat signal · return on equity
-162% avg · 5y
FY20 —FY21 —FY22 -428%FY23 —FY24 104%

It earned an average -162% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+88% shares · 5y

Share count is up 88% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$1
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2020-12-31 · accession 0001383395-23-000013 (ProfitLossAttributableToOwnersOfParent)
  2. 20-F · period ending 2021-12-31 · accession 0001383395-24-000034 (ProfitLossAttributableToOwnersOfParent)
  3. 20-F · period ending 2022-12-31 · accession 0001383395-25-000018 (ProfitLossAttributableToOwnersOfParent)
  4. 20-F · period ending 2020-12-31 · accession 0001383395-23-000013 (CashFlowsFromUsedInOperatingActivities)
  5. 20-F · period ending 2021-12-31 · accession 0001383395-24-000034 (CashFlowsFromUsedInOperatingActivities)
  6. 20-F · period ending 2022-12-31 · accession 0001383395-25-000018 (CashFlowsFromUsedInOperatingActivities)
  7. 20-F · period ending 2020-12-31 · accession 0001383395-24-000034 (CashAndCashEquivalents)
  8. 20-F · period ending 2021-12-31 · accession 0001383395-25-000018 (CashAndCashEquivalents)