SKYWORKS SOLUTIONS INC (1SWKS.MI) Stock Fundamental Analysis
BIT:1SWKS - Euronext Milan - US83088M1027 - Common Stock - Currency: EUR
Taking everything into account, 1SWKS scores 5 out of 10 in our fundamental rating. 1SWKS was compared to 58 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1SWKS has a great health rating, there are worries on its profitability. 1SWKS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
1SWKS had positive earnings in the past year.
In the past year 1SWKS had a positive cash flow from operations.
In the past 5 years 1SWKS has always been profitable.
1SWKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1SWKS's Return On Assets of 7.20% is in line compared to the rest of the industry. 1SWKS outperforms 44.44% of its industry peers.
1SWKS has a Return On Equity (9.41%) which is comparable to the rest of the industry.
1SWKS has a worse Return On Invested Capital (7.69%) than 61.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1SWKS is below the industry average of 16.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.2% | ||
| ROE | 9.41% | ||
| ROIC | 7.69% |
ROA(3y)11.08%
ROA(5y)13.33%
ROE(3y)16.29%
ROE(5y)19.35%
ROIC(3y)11.51%
ROIC(5y)12.89%
1.3 Margins
With a Profit Margin value of 14.27%, 1SWKS perfoms like the industry average, outperforming 51.85% of the companies in the same industry.
In the last couple of years the Profit Margin of 1SWKS has declined.
1SWKS has a Operating Margin (18.84%) which is in line with its industry peers.
1SWKS's Operating Margin has declined in the last couple of years.
The Gross Margin of 1SWKS (41.19%) is worse than 68.52% of its industry peers.
1SWKS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.84% | ||
| PM (TTM) | 14.27% | ||
| GM | 41.19% |
OM growth 3Y-15.95%
OM growth 5Y-7.87%
PM growth 3Y-21.35%
PM growth 5Y-10.81%
GM growth 3Y-5.74%
GM growth 5Y-2.81%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1SWKS is destroying value.
The number of shares outstanding for 1SWKS has been increased compared to 1 year ago.
Compared to 5 years ago, 1SWKS has less shares outstanding
The debt/assets ratio for 1SWKS has been reduced compared to a year ago.
2.2 Solvency
1SWKS has an Altman-Z score of 6.78. This indicates that 1SWKS is financially healthy and has little risk of bankruptcy at the moment.
1SWKS's Altman-Z score of 6.78 is fine compared to the rest of the industry. 1SWKS outperforms 68.52% of its industry peers.
1SWKS 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.
1SWKS has a better Debt to FCF ratio (0.61) than 88.89% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that 1SWKS is not too dependend on debt financing.
1SWKS's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. 1SWKS outperforms 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 6.78 |
ROIC/WACC0.54
WACC14.13%
2.3 Liquidity
1SWKS has a Current Ratio of 5.54. This indicates that 1SWKS is financially healthy and has no problem in meeting its short term obligations.
1SWKS has a better Current ratio (5.54) than 94.44% of its industry peers.
1SWKS has a Quick Ratio of 4.24. This indicates that 1SWKS is financially healthy and has no problem in meeting its short term obligations.
1SWKS has a Quick ratio of 4.24. This is amongst the best in the industry. 1SWKS outperforms 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.54 | ||
| Quick Ratio | 4.24 |
3. Growth
3.1 Past
The earnings per share for 1SWKS have decreased strongly by -26.46% in the last year.
Measured over the past 5 years, 1SWKS shows a small growth in Earnings Per Share. The EPS has been growing by 0.35% on average per year.
The Revenue for 1SWKS has decreased by -12.45% in the past year. This is quite bad
The Revenue has been growing slightly by 4.35% on average over the past years.
EPS 1Y (TTM)-26.46%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%-29.55%
Revenue 1Y (TTM)-12.45%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%-15.91%
3.2 Future
1SWKS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.48% yearly.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-12.24%
EPS Next 2Y0.73%
EPS Next 3Y7.7%
EPS Next 5Y8.48%
Revenue Next Year-5%
Revenue Next 2Y1.36%
Revenue Next 3Y3.53%
Revenue Next 5Y4.44%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.64, the valuation of 1SWKS can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of 1SWKS indicates a somewhat cheap valuation: 1SWKS is cheaper than 70.37% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. 1SWKS is valued rather cheaply when compared to this.
1SWKS is valuated correctly with a Price/Forward Earnings ratio of 12.12.
Based on the Price/Forward Earnings ratio, 1SWKS is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
1SWKS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
1SWKS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1SWKS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.51 | ||
| EV/EBITDA | 11.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)30.05
EPS Next 2Y0.73%
EPS Next 3Y7.7%
5. Dividend
5.1 Amount
1SWKS has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.50, 1SWKS pays a better dividend. On top of this 1SWKS pays more dividend than 96.30% of the companies listed in the same industry.
1SWKS's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of 1SWKS is nicely growing with an annual growth rate of 11.77%!
Dividend Growth(5Y)11.77%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1SWKS pays out 73.67% of its income as dividend. This is not a sustainable payout ratio.
1SWKS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP73.67%
EPS Next 2Y0.73%
EPS Next 3Y7.7%
BIT:1SWKS (3/3/2025, 7:00:00 PM)
64.25
-21.96 (-25.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.62%
Inst Owner ChangeN/A
Ins Owners0.35%
Ins Owner ChangeN/A
Market Cap10.27B
Analysts67.22
Price Target95.89 (49.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend2.75
Dividend Growth(5Y)11.77%
DP73.67%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.21%
Min EPS beat(2)-2.17%
Max EPS beat(2)-0.25%
EPS beat(4)0
Avg EPS beat(4)-0.98%
Min EPS beat(4)-2.17%
Max EPS beat(4)-0.25%
EPS beat(8)1
Avg EPS beat(8)-0.8%
EPS beat(12)3
Avg EPS beat(12)-0.44%
EPS beat(16)5
Avg EPS beat(16)3.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-2%
Max Revenue beat(4)-1.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.77%
Revenue beat(12)0
Avg Revenue beat(12)-1.69%
Revenue beat(16)1
Avg Revenue beat(16)1.11%
PT rev (1m)-11.66%
PT rev (3m)-11.66%
EPS NQ rev (1m)-28.27%
EPS NQ rev (3m)-28.27%
EPS NY rev (1m)-33.9%
EPS NY rev (3m)-33.9%
Revenue NQ rev (1m)-15.41%
Revenue NQ rev (3m)-15.41%
Revenue NY rev (1m)-16.67%
Revenue NY rev (3m)-16.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 12.12 | ||
| P/S | 2.56 | ||
| P/FCF | 6.51 | ||
| P/OCF | 5.85 | ||
| P/B | 1.69 | ||
| P/tB | 3.28 | ||
| EV/EBITDA | 11.12 |
EPS(TTM)6.04
EY9.4%
EPS(NY)5.3
Fwd EY8.25%
FCF(TTM)9.88
FCFY15.37%
OCF(TTM)10.98
OCFY17.09%
SpS25.14
BVpS38.13
TBVpS19.61
PEG (NY)N/A
PEG (5Y)30.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.2% | ||
| ROE | 9.41% | ||
| ROCE | 10.25% | ||
| ROIC | 7.69% | ||
| ROICexc | 9.99% | ||
| ROICexgc | 20.83% | ||
| OM | 18.84% | ||
| PM (TTM) | 14.27% | ||
| GM | 41.19% | ||
| FCFM | 39.29% |
ROA(3y)11.08%
ROA(5y)13.33%
ROE(3y)16.29%
ROE(5y)19.35%
ROIC(3y)11.51%
ROIC(5y)12.89%
ROICexc(3y)13.12%
ROICexc(5y)15.08%
ROICexgc(3y)26.9%
ROICexgc(5y)29.72%
ROCE(3y)15.35%
ROCE(5y)17.19%
ROICexcg growth 3Y-19.58%
ROICexcg growth 5Y-9.35%
ROICexc growth 3Y-17.2%
ROICexc growth 5Y-13.88%
OM growth 3Y-15.95%
OM growth 5Y-7.87%
PM growth 3Y-21.35%
PM growth 5Y-10.81%
GM growth 3Y-5.74%
GM growth 5Y-2.81%
F-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 40.57% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 27.82 | ||
| Cash Conversion | 147.32% | ||
| Profit Quality | 275.44% | ||
| Current Ratio | 5.54 | ||
| Quick Ratio | 4.24 | ||
| Altman-Z | 6.78 |
F-Score5
WACC14.13%
ROIC/WACC0.54
Cap/Depr(3y)50.97%
Cap/Depr(5y)82.32%
Cap/Sales(3y)6.21%
Cap/Sales(5y)8.65%
Profit Quality(3y)170.68%
Profit Quality(5y)137.14%
High Growth Momentum
Growth
EPS 1Y (TTM)-26.46%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%-29.55%
EPS Next Y-12.24%
EPS Next 2Y0.73%
EPS Next 3Y7.7%
EPS Next 5Y8.48%
Revenue 1Y (TTM)-12.45%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%-15.91%
Revenue Next Year-5%
Revenue Next 2Y1.36%
Revenue Next 3Y3.53%
Revenue Next 5Y4.44%
EBIT growth 1Y-31.73%
EBIT growth 3Y-21.4%
EBIT growth 5Y-3.86%
EBIT Next Year9.13%
EBIT Next 3Y10.91%
EBIT Next 5Y10.75%
FCF growth 1Y1.31%
FCF growth 3Y13.6%
FCF growth 5Y11.7%
OCF growth 1Y-1.71%
OCF growth 3Y0.98%
OCF growth 5Y5.94%