Investors should take notice of NASDAQ:SWKS—it offers a great deal for the fundamentals it presents.

Last update: Nov 22, 2024

Uncover the hidden value in SKYWORKS SOLUTIONS INC (NASDAQ:SWKS) as our stock screening tool recommends it as an undervalued choice. NASDAQ:SWKS maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

How do we evaluate the Valuation for NASDAQ:SWKS?

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:SWKS has earned a 7 for valuation:

Compared to the rest of the industry, the Price/Earnings ratio of SWKS indicates a rather cheap valuation: SWKS is cheaper than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, SWKS is valued rather cheaply.
91.67% of the companies in the same industry are more expensive than SWKS, based on the Price/Forward Earnings ratio.
SWKS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
Based on the Enterprise Value to EBITDA ratio, SWKS is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
SWKS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SWKS is cheaper than 99.07% of the companies in the same industry.
The decent profitability rating of SWKS may justify a higher PE ratio.
SWKS's earnings are expected to grow with 17.98% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NASDAQ:SWKS

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:SWKS, the assigned 6 is a significant indicator of profitability:

SWKS's Return On Assets of 7.20% is fine compared to the rest of the industry. SWKS outperforms 70.37% of its industry peers.
Looking at the Return On Equity, with a value of 9.41%, SWKS is in the better half of the industry, outperforming 64.81% of the companies in the same industry.
SWKS has a better Return On Invested Capital (8.10%) than 75.93% of its industry peers.
The 3 year average ROIC (12.13%) for SWKS is well above the current ROIC(8.10%). The reason for the recent decline needs to be investigated.
SWKS's Profit Margin of 14.27% is fine compared to the rest of the industry. SWKS outperforms 69.44% of its industry peers.
SWKS has a better Operating Margin (18.84%) than 75.00% of its industry peers.

Health Analysis for NASDAQ:SWKS

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:SWKS, the assigned 8 for health provides valuable insights:

SWKS has an Altman-Z score of 6.43. This indicates that SWKS is financially healthy and has little risk of bankruptcy at the moment.
SWKS has a better Altman-Z score (6.43) than 70.37% of its industry peers.
The Debt to FCF ratio of SWKS is 0.61, which is an excellent value as it means it would take SWKS, only 0.61 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.61, SWKS belongs to the top of the industry, outperforming 82.41% of the companies in the same industry.
SWKS has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
SWKS has a Current Ratio of 5.54. This indicates that SWKS is financially healthy and has no problem in meeting its short term obligations.
SWKS has a Current ratio of 5.54. This is amongst the best in the industry. SWKS outperforms 82.41% of its industry peers.
SWKS has a Quick Ratio of 4.24. This indicates that SWKS is financially healthy and has no problem in meeting its short term obligations.
SWKS's Quick ratio of 4.24 is fine compared to the rest of the industry. SWKS outperforms 76.85% of its industry peers.

A Closer Look at Growth for NASDAQ:SWKS

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:SWKS has earned a 4 for growth:

SWKS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.21% yearly.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of SWKS

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.