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 107 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 is valued quite cheap, while showing a decent growth score. This is a good combination! SWKS also has an excellent dividend rating. These ratings would make SWKS suitable for value and dividend investing!
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.
In the past 5 years SWKS has always been profitable.
In the past 5 years SWKS always reported a positive cash flow from operatings.
1.2 Ratios
SWKS has a better Return On Assets (6.32%) than 69.16% of its industry peers.
Looking at the Return On Equity, with a value of 8.23%, SWKS is in the better half of the industry, outperforming 61.68% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.09%, SWKS is doing good in the industry, outperforming 71.96% 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 11.67%.
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 69.16% 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 17.19%, SWKS is in the better half of the industry, outperforming 74.77% of the companies in the same industry.
In the last couple of years the Operating Margin of SWKS has declined.
SWKS's Gross Margin of 40.94% is in line compared to the rest of the industry. SWKS outperforms 42.06% of its industry peers.
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
SWKS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 5.55 indicates that SWKS is not in any danger for bankruptcy at the moment.
SWKS has a Altman-Z score of 5.55. This is in the better half of the industry: SWKS outperforms 62.62% 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.
With an excellent Debt to FCF ratio value of 0.81, SWKS belongs to the best of the industry, outperforming 81.31% of the companies in the same industry.
SWKS has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
SWKS has a Debt to Equity ratio (0.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 5.55 |
ROIC/WACC0.62
WACC11.38%
2.3 Liquidity
A Current Ratio of 5.94 indicates that SWKS has no problem at all paying its short term obligations.
SWKS has a Current ratio of 5.94. This is amongst the best in the industry. SWKS outperforms 85.05% of its industry peers.
A Quick Ratio of 4.73 indicates that SWKS has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 4.73, SWKS belongs to the best of the industry, outperforming 82.24% of the companies in the same industry.
| 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.
SWKS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.35% yearly.
Looking at the last year, SWKS shows a very negative growth in Revenue. The Revenue has decreased by -12.91% in the last year.
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
The Earnings Per Share is expected to grow by 8.48% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-22.29%
EPS Next 2Y-18.17%
EPS Next 3Y-3.33%
EPS Next 5Y8.48%
Revenue Next Year-8.7%
Revenue Next 2Y-6.76%
Revenue Next 3Y-2.23%
Revenue Next 5Y4.44%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.37, which indicates a very decent valuation of SWKS.
Based on the Price/Earnings ratio, SWKS is valued cheaper than 95.33% of the companies in the same industry.
SWKS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
With a Price/Forward Earnings ratio of 15.98, SWKS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWKS indicates a rather cheap valuation: SWKS is cheaper than 85.98% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. SWKS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 15.98 |
4.2 Price Multiples
SWKS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SWKS is cheaper than 91.59% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SWKS is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.82 | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
The decent profitability rating of SWKS may justify a higher PE ratio.
A cheap valuation may be justified as SWKS's earnings are expected to decrease with -3.33% in the coming years.
PEG (NY)N/A
PEG (5Y)32.12
EPS Next 2Y-18.17%
EPS Next 3Y-3.33%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 4.16%, which is a nice return.
In the last 3 months the price of SWKS has falen by -21.31%. 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 2.21, SWKS pays a better dividend. On top of this SWKS pays more dividend than 96.26% 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 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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.
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-18.17%
EPS Next 3Y-3.33%
67.21
-0.11 (-0.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change-88.58%
Ins Owners0.28%
Ins Owner Change8.37%
Market Cap10.80B
Analysts66.86
Price Target74.93 (11.49%)
Short Float %8.97%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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)-24.47%
PT rev (3m)-25.29%
EPS NQ rev (1m)-1.3%
EPS NQ rev (3m)-16.7%
EPS NY rev (1m)-11.38%
EPS NY rev (3m)-25.29%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-4.45%
Revenue NY rev (1m)-3.89%
Revenue NY rev (3m)-9.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 15.98 | ||
| P/S | 2.67 | ||
| P/FCF | 8.82 | ||
| P/OCF | 7.57 | ||
| P/B | 1.69 | ||
| P/tB | 3.23 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)5.91
EY8.79%
EPS(NY)4.2
Fwd EY6.26%
FCF(TTM)7.62
FCFY11.34%
OCF(TTM)8.88
OCFY13.21%
SpS25.16
BVpS39.82
TBVpS20.78
PEG (NY)N/A
PEG (5Y)32.12
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 | 5.55 |
F-Score6
WACC11.38%
ROIC/WACC0.62
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-18.17%
EPS Next 3Y-3.33%
EPS Next 5Y8.48%
Revenue 1Y (TTM)-12.91%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%-11.07%
Revenue Next Year-8.7%
Revenue Next 2Y-6.76%
Revenue Next 3Y-2.23%
Revenue Next 5Y4.44%
EBIT growth 1Y-34.41%
EBIT growth 3Y-21.4%
EBIT growth 5Y-3.86%
EBIT Next Year5.51%
EBIT Next 3Y10.18%
EBIT Next 5Y10.75%
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%