SKYWORKS SOLUTIONS INC (SWKS) Stock Fundamental Analysis
NASDAQ:SWKS - Nasdaq - US83088M1027 - Common Stock - Currency: USD
SWKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SWKS was profitable.
SWKS had a positive operating cash flow in the past year.
SWKS had positive earnings in each of the past 5 years.
Each year in the past 5 years SWKS had a positive operating cash flow.
1.2 Ratios
SWKS has a better Return On Assets (7.20%) than 70.37% of its industry peers.
Looking at the Return On Equity, with a value of 9.41%, SWKS is in the better half of the industry, outperforming 64.81% of the companies in the same industry.
SWKS has a better Return On Invested Capital (8.10%) than 75.00% 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 11.96%.
The last Return On Invested Capital (8.10%) 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 | 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 better Profit Margin (14.27%) than 68.52% of its industry peers.
SWKS's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 18.84%, SWKS is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SWKS has declined.
SWKS has a Gross Margin of 41.19%. This is comparable to the rest of the industry: SWKS outperforms 43.52% of its industry peers.
In the last couple of years the Gross Margin of SWKS has declined.
| 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.
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.
The debt/assets ratio for SWKS has been reduced compared to a year ago.
2.2 Solvency
SWKS has an Altman-Z score of 6.79. This indicates that SWKS is financially healthy and has little risk of bankruptcy at the moment.
SWKS has a Altman-Z score of 6.79. This is in the better half of the industry: SWKS outperforms 65.74% 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's Debt to FCF ratio of 0.61 is amongst the best of the industry. SWKS outperforms 82.41% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that SWKS is not too dependend on debt financing.
The Debt to Equity ratio of SWKS (0.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 6.79 |
ROIC/WACC0.56
WACC14.44%
2.3 Liquidity
A Current Ratio of 5.54 indicates that SWKS has no problem at all paying its short term obligations.
The Current ratio of SWKS (5.54) is better than 83.33% of its industry peers.
A Quick Ratio of 4.24 indicates that SWKS has no problem at all paying its short term obligations.
With a decent Quick ratio value of 4.24, SWKS is doing good in the industry, outperforming 77.78% of the companies in the same industry.
| 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.
SWKS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.35% yearly.
The Revenue for SWKS has decreased by -12.45% 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)-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
The Earnings Per Share is expected to grow by 8.32% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.39% on average over the next years.
EPS Next Y-12.31%
EPS Next 2Y1.34%
EPS Next 3Y7.26%
EPS Next 5Y8.32%
Revenue Next Year-5%
Revenue Next 2Y1.45%
Revenue Next 3Y3.5%
Revenue Next 5Y4.39%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
SWKS is valuated correctly with a Price/Earnings ratio of 14.52.
SWKS's Price/Earnings ratio is rather cheap when compared to the industry. SWKS is cheaper than 87.96% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.58. SWKS is valued slightly cheaper when compared to this.
SWKS is valuated correctly with a Price/Forward Earnings ratio of 16.56.
82.41% of the companies in the same industry are more expensive than SWKS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SWKS to the average of the S&P500 Index (24.47), we can say SWKS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 16.56 |
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 86.11% of the companies listed in the same industry.
100.00% 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 | 8.88 | ||
| EV/EBITDA | 11.16 |
4.3 Compensation for Growth
SWKS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)41.02
EPS Next 2Y1.34%
EPS Next 3Y7.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.06%, SWKS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.28, SWKS pays a better dividend. On top of this SWKS pays more dividend than 92.59% of the companies listed in the same industry.
SWKS's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
The dividend of SWKS is nicely growing with an annual growth rate of 11.77%!
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
SWKS pays out 73.67% 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.
DP73.67%
EPS Next 2Y1.34%
EPS Next 3Y7.26%
SKYWORKS SOLUTIONS INC
NASDAQ:SWKS (1/24/2025, 6:00:08 PM)
After market: 91.2 0 (0%)91.2
-1.32 (-1.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.62%
Inst Owner Change-0.33%
Ins Owners0.35%
Ins Owner Change8.06%
Market Cap14.58B
Analysts67.22
Price Target99.21 (8.78%)
Short Float %8.38%
Short Ratio5.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend2.75
Dividend Growth(5Y)11.77%
DP73.67%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.21%
Min EPS beat(2)-2.17%
Max EPS beat(2)-0.25%
EPS beat(4)0
Avg EPS beat(4)-0.98%
Min EPS beat(4)-2.17%
Max EPS beat(4)-0.25%
EPS beat(8)1
Avg EPS beat(8)-0.8%
EPS beat(12)3
Avg EPS beat(12)-0.44%
EPS beat(16)5
Avg EPS beat(16)3.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)-1.4%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-2%
Max Revenue beat(4)-1.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.77%
Revenue beat(12)0
Avg Revenue beat(12)-1.69%
Revenue beat(16)1
Avg Revenue beat(16)1.11%
PT rev (1m)-1.08%
PT rev (3m)-16.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.69%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-5.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 16.56 | ||
| P/S | 3.49 | ||
| P/FCF | 8.88 | ||
| P/OCF | 7.99 | ||
| P/B | 2.3 | ||
| P/tB | 4.47 | ||
| EV/EBITDA | 11.16 |
EPS(TTM)6.28
EY6.89%
EPS(NY)5.51
Fwd EY6.04%
FCF(TTM)10.27
FCFY11.26%
OCF(TTM)11.41
OCFY12.51%
SpS26.13
BVpS39.62
TBVpS20.38
PEG (NY)N/A
PEG (5Y)41.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.2% | ||
| ROE | 9.41% | ||
| ROCE | 10.25% | ||
| ROIC | 8.1% | ||
| ROICexc | 10.52% | ||
| ROICexgc | 21.94% | ||
| OM | 18.84% | ||
| PM (TTM) | 14.27% | ||
| GM | 41.19% | ||
| FCFM | 39.29% |
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-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 40.57% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 27.82 | ||
| Cash Conversion | 147.32% | ||
| Profit Quality | 275.44% | ||
| Current Ratio | 5.54 | ||
| Quick Ratio | 4.24 | ||
| Altman-Z | 6.79 |
F-Score5
WACC14.44%
ROIC/WACC0.56
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)-26.46%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%-29.55%
EPS Next Y-12.31%
EPS Next 2Y1.34%
EPS Next 3Y7.26%
EPS Next 5Y8.32%
Revenue 1Y (TTM)-12.45%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%-15.91%
Revenue Next Year-5%
Revenue Next 2Y1.45%
Revenue Next 3Y3.5%
Revenue Next 5Y4.39%
EBIT growth 1Y-31.73%
EBIT growth 3Y-21.4%
EBIT growth 5Y-3.86%
EBIT Next Year9.13%
EBIT Next 3Y10.91%
EBIT Next 5Y10.61%
FCF growth 1Y1.31%
FCF growth 3Y13.6%
FCF growth 5Y11.7%
OCF growth 1Y-1.71%
OCF growth 3Y0.98%
OCF growth 5Y5.94%