SKYWORKS SOLUTIONS INC (SWKS) Stock Fundamental Analysis
NASDAQ:SWKS - Nasdaq - US83088M1027 - Common Stock - Currency: USD
Overall SWKS gets a fundamental rating of 6 out of 10. We evaluated SWKS against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. SWKS has an excellent financial health rating, but there are some minor concerns on its profitability. SWKS is cheap, but on the other hand it scores bad on growth. Finally SWKS also has an excellent dividend rating. With these ratings, SWKS could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
SWKS had positive earnings in the past year.
SWKS had a positive operating cash flow in the past year.
Each year in the past 5 years SWKS has been profitable.
SWKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SWKS has a Return On Assets of 6.32%. This is in the better half of the industry: SWKS outperforms 68.81% of its industry peers.
With a decent Return On Equity value of 8.23%, SWKS is doing good in the industry, outperforming 62.39% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.09%, SWKS is in the better half of the industry, outperforming 73.39% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SWKS is in line with the industry average of 11.14%.
The 3 year average ROIC (12.13%) for SWKS is well above the current ROIC(7.09%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 8.23% | ||
| ROIC | 7.09% |
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
With a decent Profit Margin value of 13.02%, SWKS is doing good in the industry, outperforming 67.89% of the companies in the same industry.
In the last couple of years the Profit Margin of SWKS has declined.
The Operating Margin of SWKS (17.19%) is better than 75.23% of its industry peers.
In the last couple of years the Operating Margin of SWKS has declined.
Looking at the Gross Margin, with a value of 40.94%, SWKS is in line with its industry, outperforming 43.12% of the companies in the same industry.
In the last couple of years the Gross Margin of SWKS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.19% | ||
| PM (TTM) | 13.02% | ||
| GM | 40.94% |
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) just above the Cost of Capital (WACC), SWKS is creating some value.
Compared to 1 year ago, SWKS has more shares outstanding
Compared to 5 years ago, SWKS has less shares outstanding
Compared to 1 year ago, SWKS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.87 indicates that SWKS is not in any danger for bankruptcy at the moment.
SWKS's Altman-Z score of 4.87 is fine compared to the rest of the industry. SWKS outperforms 64.22% of its industry peers.
SWKS has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
SWKS's Debt to FCF ratio of 0.81 is amongst the best of the industry. SWKS outperforms 80.73% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that SWKS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.16, SWKS perfoms like the industry average, outperforming 46.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 4.87 |
ROIC/WACC0.67
WACC10.57%
2.3 Liquidity
SWKS has a Current Ratio of 5.94. This indicates that SWKS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SWKS (5.94) is better than 85.32% of its industry peers.
A Quick Ratio of 4.73 indicates that SWKS has no problem at all paying its short term obligations.
SWKS has a better Quick ratio (4.73) than 83.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.94 | ||
| Quick Ratio | 4.73 |
3. Growth
3.1 Past
The earnings per share for SWKS have decreased strongly by -25.38% in the last year.
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.
SWKS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.91%.
SWKS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.35% yearly.
EPS 1Y (TTM)-25.38%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%-18.78%
Revenue 1Y (TTM)-12.91%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%-11.07%
3.2 Future
SWKS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.58% yearly.
Based on estimates for the next years, SWKS will show a small growth in Revenue. The Revenue will grow by 0.21% on average per year.
EPS Next Y-22.29%
EPS Next 2Y-18.31%
EPS Next 3Y-3.31%
EPS Next 5Y1.58%
Revenue Next Year-8.67%
Revenue Next 2Y-6.7%
Revenue Next 3Y-1.89%
Revenue Next 5Y0.21%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.47, the valuation of SWKS can be described as reasonable.
SWKS's Price/Earnings ratio is rather cheap when compared to the industry. SWKS is cheaper than 91.74% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, SWKS is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.36, SWKS is valued correctly.
Based on the Price/Forward Earnings ratio, SWKS is valued cheaply inside the industry as 82.57% of the companies are valued more expensively.
SWKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.47 | ||
| Fwd PE | 13.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKS is valued cheaper than 86.24% of the companies in the same industry.
98.17% of the companies in the same industry are more expensive than SWKS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.02 | ||
| EV/EBITDA | 6.71 |
4.3 Compensation for Growth
SWKS has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SWKS's earnings are expected to decrease with -3.31% in the coming years.
PEG (NY)N/A
PEG (5Y)26.75
EPS Next 2Y-18.31%
EPS Next 3Y-3.31%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 5.20%, which is a nice return.
In the last 3 months the price of SWKS has falen by -40.22%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SWKS's Dividend Yield is rather good when compared to the industry average which is at 3.10. SWKS pays more dividend than 97.25% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, SWKS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
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.
SWKS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)11.77%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
84.05% 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.
DP84.05%
EPS Next 2Y-18.31%
EPS Next 3Y-3.31%
55.98
+0.12 (+0.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change0%
Ins Owners0.28%
Ins Owner Change10.13%
Market Cap8.60B
Analysts54.55
Price Target72.32 (29.19%)
Short Float %7.8%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
Yearly Dividend2.75
Dividend Growth(5Y)11.77%
DP84.05%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.16%
Min EPS beat(2)-0.25%
Max EPS beat(2)-0.08%
EPS beat(4)0
Avg EPS beat(4)-0.7%
Min EPS beat(4)-2.17%
Max EPS beat(4)-0.08%
EPS beat(8)1
Avg EPS beat(8)-0.45%
EPS beat(12)3
Avg EPS beat(12)-0.39%
EPS beat(16)4
Avg EPS beat(16)-0.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-1.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)-1.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.73%
Revenue beat(12)0
Avg Revenue beat(12)-1.71%
Revenue beat(16)0
Avg Revenue beat(16)-1.51%
PT rev (1m)-3.49%
PT rev (3m)-27.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-11.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-3.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.47 | ||
| Fwd PE | 13.36 | ||
| P/S | 2.13 | ||
| P/FCF | 7.02 | ||
| P/OCF | 6.02 | ||
| P/B | 1.34 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)5.91
EY10.56%
EPS(NY)4.19
Fwd EY7.49%
FCF(TTM)7.98
FCFY14.25%
OCF(TTM)9.29
OCFY16.6%
SpS26.34
BVpS41.68
TBVpS21.75
PEG (NY)N/A
PEG (5Y)26.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 8.23% | ||
| ROCE | 8.97% | ||
| ROIC | 7.09% | ||
| ROICexc | 9.14% | ||
| ROICexgc | 18.62% | ||
| OM | 17.19% | ||
| PM (TTM) | 13.02% | ||
| GM | 40.94% | ||
| FCFM | 30.28% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 44.47% | ||
| Cap/Sales | 5% | ||
| Interest Coverage | 27.49 | ||
| Cash Conversion | 124.09% | ||
| Profit Quality | 232.56% | ||
| Current Ratio | 5.94 | ||
| Quick Ratio | 4.73 | ||
| Altman-Z | 4.87 |
F-Score6
WACC10.57%
ROIC/WACC0.67
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)-25.38%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%-18.78%
EPS Next Y-22.29%
EPS Next 2Y-18.31%
EPS Next 3Y-3.31%
EPS Next 5Y1.58%
Revenue 1Y (TTM)-12.91%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%-11.07%
Revenue Next Year-8.67%
Revenue Next 2Y-6.7%
Revenue Next 3Y-1.89%
Revenue Next 5Y0.21%
EBIT growth 1Y-34.41%
EBIT growth 3Y-21.4%
EBIT growth 5Y-3.86%
EBIT Next Year-2.33%
EBIT Next 3Y1.33%
EBIT Next 5Y3.17%
FCF growth 1Y7.74%
FCF growth 3Y13.6%
FCF growth 5Y11.7%
OCF growth 1Y-11.71%
OCF growth 3Y0.98%
OCF growth 5Y5.94%