SKYWORKS SOLUTIONS INC (SWKS)
US83088M1027 - Common Stock
Taking everything into account, SWKS scores 6 out of 10 in our fundamental rating. SWKS was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. While SWKS has a great health rating, its profitability is only average at the moment. SWKS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally SWKS also has an excellent dividend rating. This makes SWKS very considerable 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.
SWKS had positive earnings in each of the past 5 years.
SWKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SWKS (7.20%) is better than 70.37% of its industry peers.
With a decent Return On Equity value of 9.41%, SWKS is doing good in the industry, outperforming 64.81% of the companies in the same industry.
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 Average Return On Invested Capital over the past 3 years for SWKS is in line with the industry average of 11.05%.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.2% | ||
| ROE | 9.41% | ||
| ROIC | 8.1% |
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
SWKS has a Profit Margin of 14.27%. This is in the better half of the industry: SWKS outperforms 69.44% of its industry peers.
In the last couple of years the Profit Margin of SWKS has declined.
SWKS's Operating Margin of 18.84% is fine compared to the rest of the industry. SWKS outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of SWKS has declined.
SWKS has a Gross Margin (41.19%) 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWKS is destroying value.
The number of shares outstanding for SWKS has been increased compared to 1 year ago.
The number of shares outstanding for SWKS has been reduced compared to 5 years ago.
SWKS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.35 indicates that SWKS is not in any danger for bankruptcy at the moment.
The Altman-Z score of SWKS (6.35) is better than 70.37% of its industry peers.
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 has a better Debt to FCF ratio (0.61) than 82.41% of its industry peers.
SWKS has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, SWKS is in line with its industry, outperforming 50.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 6.35 |
ROIC/WACC0.56
WACC14.41%
2.3 Liquidity
A Current Ratio of 5.54 indicates that SWKS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.54, SWKS belongs to the best of the industry, outperforming 82.41% of the companies in the same industry.
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.
The Quick ratio of SWKS (4.24) is better than 76.85% 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 SWKS have decreased strongly by -26.46% in the last year.
The Earnings Per Share has been growing slightly by 0.35% on average over the past years.
SWKS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.45%.
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
Based on estimates for the next years, SWKS will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.21% on average per year.
SWKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.06% yearly.
EPS Next Y4.02%
EPS Next 2Y12.86%
EPS Next 3Y17.98%
EPS Next 5Y16.21%
Revenue Next Year0.56%
Revenue Next 2Y5.64%
Revenue Next 3Y7.24%
Revenue Next 5Y7.06%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.54, the valuation of SWKS can be described as correct.
Based on the Price/Earnings ratio, SWKS is valued cheaper than 91.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. SWKS is valued rather cheaply when compared to this.
SWKS is valuated correctly with a Price/Forward Earnings ratio of 13.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWKS indicates a rather cheap valuation: SWKS is cheaper than 90.74% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. SWKS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 13.02 |
4.2 Price Multiples
88.89% of the companies in the same industry are more expensive than SWKS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SWKS indicates a rather cheap valuation: SWKS is cheaper than 98.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.29 | ||
| EV/EBITDA | 9.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SWKS does not grow enough to justify the current Price/Earnings ratio.
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.
PEG (NY)3.37
PEG (5Y)38.25
EPS Next 2Y12.86%
EPS Next 3Y17.98%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 3.35%.
In the last 3 months the price of SWKS has falen by -22.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.37, SWKS pays a better dividend. On top of this SWKS pays more dividend than 93.52% 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 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
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 last 3 years.
Dividend Growth(5Y)11.77%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
73.67% of the earnings are spent on dividend by SWKS. This is not a sustainable payout ratio.
SWKS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP73.67%
EPS Next 2Y12.86%
EPS Next 3Y17.98%
SKYWORKS SOLUTIONS INC
NASDAQ:SWKS (11/21/2024, 5:45:58 PM)
After market: 83.3338 -1.72 (-2.02%)85.05
+1.62 (+1.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 13.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.37
PEG (5Y)38.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.2% | ||
| ROE | 9.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.84% | ||
| PM (TTM) | 14.27% | ||
| GM | 41.19% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.54 | ||
| Quick Ratio | 4.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-26.46%
EPS 3Y-15.75%
EPS 5Y
EPS Q2Q%
EPS Next Y4.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.45%
Revenue growth 3Y-6.49%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y