Edge-ucation / Small Cap stocks / Trading

Top 5 Small-Cap 5G Stocks in 2022

  • Declan O’Flaherty

    Declan holds a Bachelor of Commerce from the University of Alberta and has over 4 years of experience investing in financial markets. As a fundamental investor, Declan embraces the investment principles of Warren Buffett and his disciples. This puts a focus on finding businesses with healthy financials, competent and accountable leader, enduring competitive advantages, and those that are selling at discount to what they are worth.

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The top of a 5G telecom tower.

Top 5 Small-Cap 5G Stocks in 2022 – 4The fifth-generation mobile network catapulted our civilization into a new realm of possibilities.

According to Qualcomm (QCOM), 5G provides higher multi-Gbps peak data speeds, ultra-low latency, more reliability, massive network capacity, increased availability, and a more uniform user experience than generations prior. 

In other words, our world is becoming more integrated and we humans are creating opportunities that were impossible to comprehend only a couple of decades earlier.

With so much growth, 5G plays an important role in bridging the gap between our globe’s diverse societies and is ultimately what allows us to enjoy the smooth, instantaneous online experience we have today.

As for investors, rapid expansion is expected to last through 2028 with the three major 5G markets all producing a CAGR of 25% or more, according to Grand View Research:

  • 5G System Integration Market = 25.9% CAGR
  • 5G Chipset Market = 69.1% CAGR
  • 5G Infrastructure Market = 49.8% CAGR

As the industry includes many niches, investors are likely to find a variety of 5G stocks they are already familiar with, yet they may be surprised to learn that there are a few small-cap stocks leading the 5G revolution as well. 

Reasons to Invest in Small-Cap 5G Stocks

5G networks enhance the productivity of a variety of businesses spanning from autonomous vehicles to artificial intelligence.

Without this infrastructure in place, consumers and companies alike would struggle to keep up with the frequent advancements in technological development that exist today.

While there are many large players competing in this space like Verizon (VZ), Apple (APPL), Alphabet Inc. (GOOG), Microsoft (MSFT), and Nvidia (NVDA), small-cap 5G stocks have a unique advantage because they are more nimble and capable of addressing specific industry challenges.

Therefore if one is to invest in small-cap 5G stocks, they should look for businesses with established and reliable network infrastructure, cost-reducing products and services that don’t sacrifice impeccable performance, and those that require little capital investment to maintain their current position.

By investing in 5G stocks with these characteristics, they will maximize their returns as businesses compete to build their presence in existing markets.

For more information on the advantages of small-cap stock investing, check out our article on what is a small-cap stock.

Global 5G Services Market Segmentation
Top 5 Small-Cap 5G Stocks in 2022 – 5

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1. Gilat Satellite Networks (GILT)

Market Cap: $368.92 million USD

Price: $6.52 USD

YTD Change: -7.78%

CEO: Adi Sfadia

Gilat Satellite Networks. (Nasdaq: GILT) is a satellite-based broadband communications company that designs and manufactures satellite connectivity solutions for its customers.

They offer a diverse range of products and services that address the need for in-flight & maritime connectivity, land mobility, and defense & public safety applications, as well as many others.

  • Revenue by Products
    • Fixed Networks = $114.40 mil. (53.22%)
    • Mobility Solutions = $77.61 mil. (36.10%)
    • Terrestrial Infrastructure Projects = $22.96 mil. (10.68%)
  • Debt to Revenue: 1.91%
  • Price to Book Value: 1.49
  • Operational Cash Flow (TTM): $11.19 million USD

2. Aviat Networks (AVNW)

Market Cap: $318.93 million USD

Price: $28.56 USD

YTD Change: -10.79%

CEO: Peter A. Smith Ph.D.

Aviat Networks (Nasdaq: AVNW) is a global leader in wireless transport solutions that provides comprehensive localized professional and support services to greatly simplify and optimize network infrastructure.

They do so using their innovative microwave technology whereby they design and install routers, switches, antenna stabilization systems, and network management tools.

  • Revenue by Products
    • Product sales = $185.79 mil (67.58%)
    • Services & support = 89.12 mil (32.42%)
  • Debt to Revenue: 1.45%
  • Price to Book Value: 1.58
  • Operational Cash Flow (TTM): -$7.68 million USD

3. Clearfield (CLFD)

Market Cap: $1.10 billion USD

Price: $79.65 USD

YTD Change: -5.51%

CEO: Cheryl P. Beranek

Clearfield (Nasdaq: CLFD) designs, manufactures and, distributes fiber optic management products for businesses and service providers.

Using their patented Clearview Cassette, the company significantly reduces the costs of installation and maintenance for all customers, which allows businesses to scale quickly as their subscription revenues increase.

  • Revenue by Service
    • Broadband Service Providers = $137.94 mil. (98%)
    • Legacy Customers = $2.82 mil (2%)
  • Debt to Revenue: 1.80%
  • Price to Book Value: 8.75
  • Operational Cash Flow (TTM): -$7.08 million USD

4. CEVA (CEVA)

Market Cap: $810.61 million USD

Price: $34.93 USD

YTD Change: -19.08%

CEO: Gideon Wertheizer

CEVA (Nasdaq: CEVA) is a leading licensor of wireless connectivity and smart sensing technologies, that includes DSP platforms for 5G baseband processing in mobile and infrastructure.

Their products cover a variety of connectivity enhancements including sensor fusion, image enhancement, computer vision, and more.

  • Revenue by Products
    • Connectivity products = $53.21 mil. (43.36%)
    • Smart sensing products = $19.68 mil. (16.04%)
    • Royalties = $49.82 mil. (40.60%)
  • Debt to Revenue: 6.85%
  • Price to Book Value: 2.99
  • Operational Cash Flow (TTM): $20.44 million USD

5. Cambium Networks (CMBM)

Market Cap: $458.75 million USD

Price: $17.10 USD

YTD Change: -33.36%

CEO: Atul Bhatnagar

Cambium Networks (Nasdaq: CMBM) is a global provider of wireless fabric infrastructure for broadband and Wi-Fi networks.

With a wide variety of customizable products and services, Cambium’s portfolio ensures an efficient and scalable network that is capable of fulfilling each individual client’s needs.

  • Revenue by Products
    • Point-to-Multipoint = $204.76 mil. (60.97%)
    • Point-to-Point = $60.76 mil. (18.09%)
    • Wi-Fi = $66.93 mil. (19.93%)
    • Other = $3.40 mil. (1.01%)
  • Debt to Revenue: 9.99%
  • Price to Book Value: 3.96
  • Operational Cash Flow (TTM): $18.30 million USD

 

Disclosure/Disclaimer:
We are not brokers, investment, or financial advisers; you should not rely on the information herein as investment advice. If you are seeking personalized investment advice, please contact a qualified and registered broker, investment adviser, or financial adviser. You should not make any investment decisions based on our communications. Our stock profiles are intended to highlight certain companies for YOUR further investigation; they are NOT recommendations. The securities issued by the companies we profile should be considered high risk and, if you do invest, you may lose your entire investment. Please do your own research before investing, including reading the companies’ public filings, press releases, and risk disclosures. The company provided information in this profile, extracted from public filings, company websites, and other publicly available sources. We believe the sources and information are accurate and reliable but we cannot guarantee it. The commentary and opinions in this article are our own, so please do your own research.
Copyright © 2023 Edge Investments, All rights reserved.

  • Declan O’Flaherty

    Declan holds a Bachelor of Commerce from the University of Alberta and has over 4 years of experience investing in financial markets. As a fundamental investor, Declan embraces the investment principles of Warren Buffett and his disciples. This puts a focus on finding businesses with healthy financials, competent and accountable leader, enduring competitive advantages, and those that are selling at discount to what they are worth.

    View all posts

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