SKYWORKS SOLUTIONS INC (SWKS) Stock Fundamental Analysis
NASDAQ:SWKS - Nasdaq - US83088M1027 - Common Stock - Currency: USD
Taking everything into account, SWKS scores 6 out of 10 in our fundamental rating. SWKS was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. SWKS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SWKS has a valuation in line with the averages, but on the other hand it scores bad on growth.
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 5.23%. This is in the better half of the industry: SWKS outperforms 67.27% of its industry peers.
SWKS's Return On Equity of 6.94% is fine compared to the rest of the industry. SWKS outperforms 60.91% of its industry peers.
With a decent Return On Invested Capital value of 6.77%, SWKS is doing good in the industry, outperforming 71.82% 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 10.58%.
The last Return On Invested Capital (6.77%) 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 6.94% | ||
| ROIC | 6.77% |
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
The Profit Margin of SWKS (10.43%) is better than 66.36% of its industry peers.
In the last couple of years the Profit Margin of SWKS has declined.
With a decent Operating Margin value of 15.78%, SWKS is doing good in the industry, outperforming 73.64% of the companies in the same industry.
SWKS's Operating Margin has declined in the last couple of years.
SWKS has a worse Gross Margin (41.18%) than 60.00% of its industry peers.
SWKS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.78% | ||
| PM (TTM) | 10.43% | ||
| GM | 41.18% |
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
SWKS has a better debt/assets ratio than last year.
2.2 Solvency
SWKS has an Altman-Z score of 5.79. This indicates that SWKS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.79, SWKS is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 0.75, SWKS is doing good in the industry, outperforming 78.18% of the companies in the same industry.
SWKS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
SWKS has a Debt to Equity ratio (0.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 5.79 |
ROIC/WACC0.6
WACC11.2%
2.3 Liquidity
A Current Ratio of 4.95 indicates that SWKS has no problem at all paying its short term obligations.
The Current ratio of SWKS (4.95) is better than 73.64% of its industry peers.
A Quick Ratio of 3.84 indicates that SWKS has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.84, SWKS is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.95 | ||
| Quick Ratio | 3.84 |
3. Growth
3.1 Past
The earnings per share for SWKS have decreased strongly by -24.83% in the last year.
The Earnings Per Share has been growing slightly by 0.35% on average over the past years.
The Revenue for SWKS has decreased by -12.90% in the past year. This is quite bad
SWKS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.35% yearly.
EPS 1Y (TTM)-24.83%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%-20%
Revenue 1Y (TTM)-12.9%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%-8.87%
3.2 Future
Based on estimates for the next years, SWKS will show a small growth in Earnings Per Share. The EPS will grow by 4.30% on average per year.
Based on estimates for the next years, SWKS will show a small growth in Revenue. The Revenue will grow by 1.46% on average per year.
EPS Next Y-17.48%
EPS Next 2Y-17.04%
EPS Next 3Y-4.2%
EPS Next 5Y4.3%
Revenue Next Year-8.27%
Revenue Next 2Y-7.34%
Revenue Next 3Y-2%
Revenue Next 5Y1.46%
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
A Price/Earnings ratio of 13.89 indicates a correct valuation of SWKS.
Compared to the rest of the industry, the Price/Earnings ratio of SWKS indicates a rather cheap valuation: SWKS is cheaper than 91.82% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SWKS to the average of the S&P500 Index (27.30), we can say SWKS is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.99, which indicates a rather expensive current valuation of SWKS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWKS indicates a somewhat cheap valuation: SWKS is cheaper than 76.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SWKS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.89 | ||
| Fwd PE | 17.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWKS indicates a rather cheap valuation: SWKS is cheaper than 87.27% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SWKS is valued cheaper than 99.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.82 | ||
| EV/EBITDA | 10.24 |
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 -4.20% in the coming years.
PEG (NY)N/A
PEG (5Y)39.22
EPS Next 2Y-17.04%
EPS Next 3Y-4.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.56%, SWKS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.18, SWKS pays a better dividend. On top of this SWKS pays more dividend than 94.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, SWKS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
On average, the dividend of SWKS grows each year by 11.77%, which is quite nice.
SWKS has paid a dividend for at least 10 years, which is 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
107.79% 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.
DP107.79%
EPS Next 2Y-17.04%
EPS Next 3Y-4.2%
NASDAQ:SWKS (7/9/2025, 9:45:04 AM)
77.76
-0.18 (-0.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.78%
Inst Owner Change-0.62%
Ins Owners0.24%
Ins Owner Change2.79%
Market Cap11.67B
Analysts53.75
Price Target69.15 (-11.07%)
Short Float %9.26%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend2.75
Dividend Growth(5Y)11.77%
DP107.79%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.53%
Min EPS beat(2)-0.08%
Max EPS beat(2)1.13%
EPS beat(4)1
Avg EPS beat(4)-0.34%
Min EPS beat(4)-2.17%
Max EPS beat(4)1.13%
EPS beat(8)2
Avg EPS beat(8)-0.04%
EPS beat(12)4
Avg EPS beat(12)-0.13%
EPS beat(16)5
Avg EPS beat(16)-0.28%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)-1.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-1.78%
Max Revenue beat(4)-1.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.75%
Revenue beat(12)0
Avg Revenue beat(12)-1.72%
Revenue beat(16)0
Avg Revenue beat(16)-1.61%
PT rev (1m)-1.13%
PT rev (3m)-4.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.84%
EPS NY rev (1m)0.04%
EPS NY rev (3m)6.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.89 | ||
| Fwd PE | 17.99 | ||
| P/S | 2.95 | ||
| P/FCF | 8.82 | ||
| P/OCF | 7.6 | ||
| P/B | 1.97 | ||
| P/tB | 3.99 | ||
| EV/EBITDA | 10.24 |
EPS(TTM)5.6
EY7.2%
EPS(NY)4.32
Fwd EY5.56%
FCF(TTM)8.81
FCFY11.33%
OCF(TTM)10.23
OCFY13.16%
SpS26.33
BVpS39.57
TBVpS19.48
PEG (NY)N/A
PEG (5Y)39.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 6.94% | ||
| ROCE | 8.57% | ||
| ROIC | 6.77% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 17.91% | ||
| OM | 15.78% | ||
| PM (TTM) | 10.43% | ||
| GM | 41.18% | ||
| FCFM | 33.48% |
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-Score4
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 46.52% | ||
| Cap/Sales | 5.39% | ||
| Interest Coverage | 24.55 | ||
| Cash Conversion | 142.05% | ||
| Profit Quality | 321.06% | ||
| Current Ratio | 4.95 | ||
| Quick Ratio | 3.84 | ||
| Altman-Z | 5.79 |
F-Score4
WACC11.2%
ROIC/WACC0.6
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)-24.83%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%-20%
EPS Next Y-17.48%
EPS Next 2Y-17.04%
EPS Next 3Y-4.2%
EPS Next 5Y4.3%
Revenue 1Y (TTM)-12.9%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%-8.87%
Revenue Next Year-8.27%
Revenue Next 2Y-7.34%
Revenue Next 3Y-2%
Revenue Next 5Y1.46%
EBIT growth 1Y-34.56%
EBIT growth 3Y-21.4%
EBIT growth 5Y-3.86%
EBIT Next Year-1.72%
EBIT Next 3Y0.66%
EBIT Next 5Y4.02%
FCF growth 1Y6.87%
FCF growth 3Y13.6%
FCF growth 5Y11.7%
OCF growth 1Y-6.06%
OCF growth 3Y0.98%
OCF growth 5Y5.94%