Uncovering Dividend Opportunities with NASDAQ:SWKS.

Last update: Dec 10, 2024

SKYWORKS SOLUTIONS INC (NASDAQ:SWKS) was identified as a stock worth exploring by dividend investors by our stock screener. NASDAQ:SWKS scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Unpacking NASDAQ:SWKS's Dividend Rating

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NASDAQ:SWKS scores a 7 out of 10:

Compared to an average industry Dividend Yield of 2.29, SWKS pays a better dividend. On top of this SWKS pays more dividend than 93.52% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.20, SWKS pays a bit more dividend than the S&P500 average.
The dividend of SWKS is nicely growing with an annual growth rate of 11.77%!
SWKS has been paying a dividend for at least 10 years, so it has a reliable track record.
SWKS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
The dividend of SWKS is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Insights: NASDAQ:SWKS

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:SWKS has received a 8 out of 10:

An Altman-Z score of 6.65 indicates that SWKS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.65, SWKS is doing good in the industry, outperforming 67.59% of the companies in the same industry.
SWKS has a debt to FCF ratio of 0.61. This is a very positive value and a sign of high solvency as it would only need 0.61 years to pay back of all of its debts.
SWKS's Debt to FCF ratio of 0.61 is amongst the best of the industry. SWKS outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that SWKS is not too dependend on debt financing.
A Current Ratio of 5.54 indicates that SWKS has no problem at all paying its short term obligations.
SWKS has a better Current ratio (5.54) than 83.33% 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 has a Quick ratio of 4.24. This is in the better half of the industry: SWKS outperforms 77.78% of its industry peers.

Assessing Profitability for 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:

Looking at the Return On Assets, with a value of 7.20%, SWKS is in the better half of the industry, outperforming 71.30% of the companies in the same industry.
The Return On Equity of SWKS (9.41%) is better than 65.74% of its industry peers.
With a decent Return On Invested Capital value of 8.10%, SWKS is doing good in the industry, outperforming 75.93% of the companies in the same industry.
The last Return On Invested Capital (8.10%) for SWKS is well below the 3 year average (12.13%), which needs to be investigated, but indicates that SWKS had better years and this may not be a problem.
Looking at the Profit Margin, with a value of 14.27%, SWKS is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
SWKS has a better Operating Margin (18.84%) than 75.00% of its industry peers.

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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.