SKYWORKS SOLUTIONS INC (SWKS) Stock Fundamental Analysis
USA - NASDAQ:SWKS - US83088M1027 - Common Stock
78.95 USD
+1.92 (+2.49%)
79.5 USD
+0.55 (+0.7%)
Overall SWKS gets a fundamental rating of 5 out of 10. We evaluated SWKS against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of SWKS get a neutral evaluation. Nothing too spectacular is happening here. SWKS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SWKS had positive earnings in the past year.
In the past year SWKS had a positive cash flow from operations.
Each year in the past 5 years SWKS has been profitable.
In the past 5 years SWKS always reported a positive cash flow from operatings.
1.2 Ratios
SWKS has a Return On Assets of 5.14%. This is in the better half of the industry: SWKS outperforms 70.54% of its industry peers.
SWKS has a better Return On Equity (7.01%) than 65.18% of its industry peers.
SWKS has a Return On Invested Capital of 7.33%. This is in the better half of the industry: SWKS outperforms 74.11% of its industry peers.
SWKS had an Average Return On Invested Capital over the past 3 years of 12.13%. This is in line with the industry average of 10.87%.
The 3 year average ROIC (12.13%) for SWKS is well above the current ROIC(7.33%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 7.01% | ||
| ROIC | 7.33% |
ROA(3y)11.08%
ROA(5y)13.33%
ROE(3y)16.29%
ROE(5y)19.35%
ROIC(3y)12.13%
ROIC(5y)13.58%
1.3 Margins
Looking at the Profit Margin, with a value of 9.88%, SWKS is in the better half of the industry, outperforming 69.64% of the companies in the same industry.
SWKS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.05%, SWKS is in the better half of the industry, outperforming 73.21% of the companies in the same industry.
In the last couple of years the Operating Margin of SWKS has declined.
SWKS has a Gross Margin (41.49%) which is in line with its industry peers.
SWKS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.05% | ||
| PM (TTM) | 9.88% | ||
| GM | 41.49% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SWKS is still creating some value.
Compared to 1 year ago, SWKS has more shares outstanding
The number of shares outstanding for SWKS has been reduced compared to 5 years ago.
Compared to 1 year ago, SWKS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.39 indicates that SWKS is not in any danger for bankruptcy at the moment.
SWKS's Altman-Z score of 5.39 is fine compared to the rest of the industry. SWKS outperforms 60.71% of its industry peers.
The Debt to FCF ratio of SWKS is 0.75, which is an excellent value as it means it would take SWKS, only 0.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SWKS (0.75) is better than 78.57% of its industry peers.
SWKS has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
SWKS's Debt to Equity ratio of 0.09 is in line compared to the rest of the industry. SWKS outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 5.39 |
ROIC/WACC0.66
WACC11.11%
2.3 Liquidity
SWKS has a Current Ratio of 2.39. This indicates that SWKS is financially healthy and has no problem in meeting its short term obligations.
SWKS's Current ratio of 2.39 is on the low side compared to the rest of the industry. SWKS is outperformed by 62.50% of its industry peers.
A Quick Ratio of 1.80 indicates that SWKS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.80, SWKS is not doing good in the industry: 63.39% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
SWKS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.46%.
Measured over the past 5 years, SWKS shows a small growth in Earnings Per Share. The EPS has been growing by 0.35% on average per year.
The Revenue has decreased by -8.24% in the past year.
The Revenue has been growing slightly by 4.35% on average over the past years.
EPS 1Y (TTM)-17.46%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%9.92%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%6.57%
3.2 Future
The Earnings Per Share is expected to grow by 5.53% on average over the next years.
The Revenue is expected to grow by 2.66% on average over the next years.
EPS Next Y-10.07%
EPS Next 2Y-17.19%
EPS Next 3Y-5.33%
EPS Next 5Y5.53%
Revenue Next Year-4.6%
Revenue Next 2Y-7.08%
Revenue Next 3Y-2.63%
Revenue Next 5Y2.66%
3.3 Evolution
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SWKS is valuated correctly with a Price/Earnings ratio of 13.80.
Compared to the rest of the industry, the Price/Earnings ratio of SWKS indicates a rather cheap valuation: SWKS is cheaper than 96.43% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SWKS to the average of the S&P500 Index (27.38), we can say SWKS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.33, the valuation of SWKS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SWKS is valued cheaper than 83.04% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, SWKS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 18.33 |
4.2 Price Multiples
SWKS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SWKS is cheaper than 93.75% of the companies in the same industry.
SWKS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SWKS is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.84 | ||
| EV/EBITDA | 10.31 |
4.3 Compensation for Growth
SWKS has a very decent profitability rating, which may justify a higher PE ratio.
SWKS's earnings are expected to decrease with -5.33% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)38.98
EPS Next 2Y-17.19%
EPS Next 3Y-5.33%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 3.80%.
Compared to an average industry Dividend Yield of 2.31, SWKS pays a better dividend. On top of this SWKS pays more dividend than 95.54% of the companies listed in the same industry.
SWKS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
5.2 History
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.
As SWKS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)11.77%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
110.80% of the earnings are spent on dividend by SWKS. This is not a sustainable payout ratio.
SWKS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP110.8%
EPS Next 2Y-17.19%
EPS Next 3Y-5.33%
78.95
+1.92 (+2.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.96%
Inst Owner Change-2.72%
Ins Owners0.24%
Ins Owner Change1.82%
Market Cap11.72B
Analysts54.12
Price Target76.48 (-3.13%)
Short Float %8.82%
Short Ratio5.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Yearly Dividend2.75
Dividend Growth(5Y)11.77%
DP110.8%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.88%
Min EPS beat(2)1.13%
Max EPS beat(2)6.62%
EPS beat(4)2
Avg EPS beat(4)1.86%
Min EPS beat(4)-0.25%
Max EPS beat(4)6.62%
EPS beat(8)3
Avg EPS beat(8)0.8%
EPS beat(12)4
Avg EPS beat(12)0.28%
EPS beat(16)6
Avg EPS beat(16)0.24%
Revenue beat(2)1
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)0.56%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-1.78%
Max Revenue beat(4)0.56%
Revenue beat(8)1
Avg Revenue beat(8)-1.44%
Revenue beat(12)1
Avg Revenue beat(12)-1.56%
Revenue beat(16)1
Avg Revenue beat(16)-1.53%
PT rev (1m)2.3%
PT rev (3m)10.81%
EPS NQ rev (1m)3.86%
EPS NQ rev (3m)51.85%
EPS NY rev (1m)8.8%
EPS NY rev (3m)9.02%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)13.52%
Revenue NY rev (1m)3.92%
Revenue NY rev (3m)4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 18.33 | ||
| P/S | 2.92 | ||
| P/FCF | 8.84 | ||
| P/OCF | 7.43 | ||
| P/B | 2.07 | ||
| P/tB | 4.47 | ||
| EV/EBITDA | 10.31 |
EPS(TTM)5.72
EY7.25%
EPS(NY)4.31
Fwd EY5.45%
FCF(TTM)8.93
FCFY11.31%
OCF(TTM)10.62
OCFY13.46%
SpS27.03
BVpS38.08
TBVpS17.68
PEG (NY)N/A
PEG (5Y)38.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 7.01% | ||
| ROCE | 9.27% | ||
| ROIC | 7.33% | ||
| ROICexc | 9.18% | ||
| ROICexgc | 22.05% | ||
| OM | 15.05% | ||
| PM (TTM) | 9.88% | ||
| GM | 41.49% | ||
| FCFM | 33.03% |
ROA(3y)11.08%
ROA(5y)13.33%
ROE(3y)16.29%
ROE(5y)19.35%
ROIC(3y)12.13%
ROIC(5y)13.58%
ROICexc(3y)13.82%
ROICexc(5y)15.89%
ROICexgc(3y)28.34%
ROICexgc(5y)31.3%
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-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 54.56% | ||
| Cap/Sales | 6.28% | ||
| Interest Coverage | 23.86 | ||
| Cash Conversion | 148.05% | ||
| Profit Quality | 334.45% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z | 5.39 |
F-Score6
WACC11.11%
ROIC/WACC0.66
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)-17.46%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%9.92%
EPS Next Y-10.07%
EPS Next 2Y-17.19%
EPS Next 3Y-5.33%
EPS Next 5Y5.53%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%6.57%
Revenue Next Year-4.6%
Revenue Next 2Y-7.08%
Revenue Next 3Y-2.63%
Revenue Next 5Y2.66%
EBIT growth 1Y-28.96%
EBIT growth 3Y-21.4%
EBIT growth 5Y-3.86%
EBIT Next Year-2.41%
EBIT Next 3Y0.46%
EBIT Next 5Y5.44%
FCF growth 1Y-6.85%
FCF growth 3Y13.6%
FCF growth 5Y11.7%
OCF growth 1Y-8.7%
OCF growth 3Y0.98%
OCF growth 5Y5.94%