55.79 USD
+0.51 (+0.92%)
55.67 USD
-0.12 (-0.22%)
Taking everything into account, SWKS scores 5 out of 10 in our fundamental rating. SWKS was compared to 113 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. SWKS also has an excellent dividend rating. With these ratings, SWKS could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
- In the past year SWKS was profitable.
- In the past year SWKS had a positive cash flow from operations.
- 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
- With a decent Return On Assets value of 6.03%, SWKS is doing good in the industry, outperforming 71.68% of the companies in the same industry.
- SWKS has a better Return On Equity (8.29%) than 69.91% of its industry peers.
- SWKS has a Return On Invested Capital of 6.28%. This is in the better half of the industry: SWKS outperforms 70.80% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SWKS is in line with the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 8.29% | ||
| ROIC | 6.28% |
ROA(3y)8.29%
ROA(5y)11.34%
ROE(3y)11.28%
ROE(5y)17.09%
ROIC(3y)8.86%
ROIC(5y)11.76%
1.3 Margins
- SWKS's Profit Margin of 11.67% is fine compared to the rest of the industry. SWKS outperforms 67.26% of its industry peers.
- In the last couple of years the Profit Margin of SWKS has declined.
- With a decent Operating Margin value of 12.83%, SWKS is doing good in the industry, outperforming 68.14% of the companies in the same industry.
- SWKS's Operating Margin has declined in the last couple of years.
- SWKS has a Gross Margin (41.16%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of SWKS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.83% | ||
| PM (TTM) | 11.67% | ||
| GM | 41.16% |
OM growth 3Y-23.27%
OM growth 5Y-13.82%
PM growth 3Y-20.52%
PM growth 5Y-13.62%
GM growth 3Y-4.65%
GM growth 5Y-3.05%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWKS is destroying value.
- SWKS has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for SWKS has been reduced compared to 5 years ago.
- The debt/assets ratio for SWKS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.28 indicates that SWKS is not in any danger for bankruptcy at the moment.
- SWKS has a Altman-Z score (4.28) which is comparable to the rest of the industry.
- SWKS has a debt to FCF ratio of 0.93. This is a very positive value and a sign of high solvency as it would only need 0.93 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.93, SWKS is in the better half of the industry, outperforming 77.88% of the companies in the same industry.
- SWKS has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.09, SWKS perfoms like the industry average, outperforming 58.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | 4.28 |
ROIC/WACC0.59
WACC10.56%
2.3 Liquidity
- A Current Ratio of 2.33 indicates that SWKS has no problem at all paying its short term obligations.
- The Current ratio of SWKS (2.33) is worse than 63.72% of its industry peers.
- SWKS has a Quick Ratio of 1.76. This is a normal value and indicates that SWKS is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.76, SWKS is doing worse than 63.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.33 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
- The earnings per share for SWKS have decreased by -5.57% in the last year.
- SWKS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.63% yearly.
- Looking at the last year, SWKS shows a decrease in Revenue. The Revenue has decreased by -2.18% in the last year.
- Measured over the past years, SWKS shows a small growth in Revenue. The Revenue has been growing by 4.02% on average per year.
EPS 1Y (TTM)-5.57%
EPS 3Y-19.17%
EPS 5Y-0.63%
EPS Q2Q%13.55%
Revenue 1Y (TTM)-2.18%
Revenue growth 3Y-9.34%
Revenue growth 5Y4.02%
Sales Q2Q%7.33%
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 5.78% on average per year.
- SWKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.85% yearly.
EPS Next Y-23.93%
EPS Next 2Y-6.72%
EPS Next 3Y3.65%
EPS Next 5Y5.78%
Revenue Next Year-8.16%
Revenue Next 2Y-1.83%
Revenue Next 3Y2.61%
Revenue Next 5Y4.85%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.41, which indicates a very decent valuation of SWKS.
- SWKS's Price/Earnings ratio is rather cheap when compared to the industry. SWKS is cheaper than 99.11% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. SWKS is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 12.37 indicates a correct valuation of SWKS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SWKS indicates a rather cheap valuation: SWKS is cheaper than 94.69% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, SWKS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.41 | ||
| Fwd PE | 12.37 |
4.2 Price Multiples
- 96.46% of the companies in the same industry are more expensive than SWKS, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, SWKS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.71 | ||
| EV/EBITDA | 7.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.72%
EPS Next 3Y3.65%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.76%, SWKS is a good candidate for dividend investing.
- In the last 3 months the price of SWKS has falen by -28.22%. 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 0.49, SWKS pays a better dividend. On top of this SWKS pays more dividend than 99.11% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, SWKS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
5.2 History
- On average, the dividend of SWKS grows each year by 8.92%, 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)8.92%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- SWKS pays out 90.67% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of SWKS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP90.67%
EPS Next 2Y-6.72%
EPS Next 3Y3.65%
SKYWORKS SOLUTIONS INC / SWKS FAQ
What is the fundamental rating for SWKS stock?
ChartMill assigns a fundamental rating of 5 / 10 to SWKS.
Can you provide the valuation status for SKYWORKS SOLUTIONS INC?
ChartMill assigns a valuation rating of 6 / 10 to SKYWORKS SOLUTIONS INC (SWKS). This can be considered as Fairly Valued.
Can you provide the profitability details for SKYWORKS SOLUTIONS INC?
SKYWORKS SOLUTIONS INC (SWKS) has a profitability rating of 5 / 10.
How financially healthy is SKYWORKS SOLUTIONS INC?
The financial health rating of SKYWORKS SOLUTIONS INC (SWKS) is 6 / 10.
Can you provide the expected EPS growth for SWKS stock?
The Earnings per Share (EPS) of SKYWORKS SOLUTIONS INC (SWKS) is expected to decline by -23.93% in the next year.