SKYWORKS SOLUTIONS INC (SWKS) Stock Fundamental Analysis
USA - NASDAQ:SWKS - US83088M1027 - Common Stock
79.16 USD
+0.42 (+0.53%)
79.47 USD
+0.31 (+0.39%)
SWKS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. SWKS has only an average score on both its financial health and profitability. 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.
SWKS had positive earnings in each of the past 5 years.
In the past 5 years SWKS always reported a positive cash flow from operatings.
1.2 Ratios
SWKS has a Return On Assets of 5.14%. This is in the better half of the industry: SWKS outperforms 70.54% of its industry peers.
The Return On Equity of SWKS (7.01%) is better than 65.18% of its industry peers.
SWKS has a Return On Invested Capital of 7.33%. This is in the better half of the industry: SWKS outperforms 73.21% of its industry peers.
SWKS had an Average Return On Invested Capital over the past 3 years of 12.13%. This is in line with the industry average of 11.03%.
The 3 year average ROIC (12.13%) for SWKS is well above the current ROIC(7.33%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 7.01% | ||
| ROIC | 7.33% |
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 9.88%. This is in the better half of the industry: SWKS outperforms 69.64% of its industry peers.
In the last couple of years the Profit Margin of SWKS has declined.
Looking at the Operating Margin, with a value of 15.05%, SWKS is in the better half of the industry, outperforming 73.21% of the companies in the same industry.
In the last couple of years the Operating Margin of SWKS has declined.
With a Gross Margin value of 41.49%, SWKS perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
SWKS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.05% | ||
| PM (TTM) | 9.88% | ||
| GM | 41.49% |
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 just above the Cost of Capital (WACC), so SWKS is still 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.
The debt/assets ratio for SWKS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.46 indicates that SWKS is not in any danger for bankruptcy at the moment.
SWKS's Altman-Z score of 5.46 is in line compared to the rest of the industry. SWKS outperforms 58.04% of its industry peers.
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.
SWKS has a better Debt to FCF ratio (0.75) than 78.57% of its industry peers.
SWKS has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SWKS (0.09) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 5.46 |
ROIC/WACC0.65
WACC11.32%
2.3 Liquidity
SWKS has a Current Ratio of 2.39. This indicates that SWKS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SWKS (2.39) is worse than 61.61% of its industry peers.
SWKS has a Quick Ratio of 1.80. This is a normal value and indicates that SWKS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.80, SWKS perfoms like the industry average, outperforming 40.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
The earnings per share for SWKS have decreased strongly by -17.46% in the last year.
The Earnings Per Share has been growing slightly by 0.35% on average over the past years.
Looking at the last year, SWKS shows a decrease in Revenue. The Revenue has decreased by -8.24% in the last year.
The Revenue has been growing slightly by 4.35% on average over the past years.
EPS 1Y (TTM)-17.46%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%9.92%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%6.57%
3.2 Future
SWKS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.53% yearly.
SWKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
EPS Next Y-9.82%
EPS Next 2Y-16.88%
EPS Next 3Y-5.08%
EPS Next 5Y5.53%
Revenue Next Year-4.6%
Revenue Next 2Y-7.06%
Revenue Next 3Y-2.57%
Revenue Next 5Y2.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 13.84, the valuation of SWKS can be described as correct.
SWKS's Price/Earnings ratio is rather cheap when compared to the industry. SWKS is cheaper than 96.43% of the companies in the same industry.
SWKS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.24, SWKS is valued on the expensive side.
SWKS's Price/Forward Earnings ratio is rather cheap when compared to the industry. SWKS is cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, SWKS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 18.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKS is valued cheaper than 91.07% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SWKS indicates a rather cheap valuation: SWKS is cheaper than 99.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.87 | ||
| EV/EBITDA | 10.55 |
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 -5.08% in the coming years.
PEG (NY)N/A
PEG (5Y)39.09
EPS Next 2Y-16.88%
EPS Next 3Y-5.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.75%, SWKS has a reasonable but not impressive dividend return.
SWKS's Dividend Yield is rather good when compared to the industry average which is at 2.18. SWKS pays more dividend than 95.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, SWKS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
On average, the dividend of SWKS grows each year by 11.77%, which is quite nice.
SWKS has been paying a dividend for at least 10 years, so it has 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
SWKS pays out 110.80% 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.
DP110.8%
EPS Next 2Y-16.88%
EPS Next 3Y-5.08%
79.16
+0.42 (+0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.56%
Inst Owner Change-0.26%
Ins Owners0.23%
Ins Owner Change1.82%
Market Cap11.75B
Revenue(TTM)4.01B
Net Income(TTM)396.20M
Analysts54.12
Price Target76.48 (-3.39%)
Short Float %7.16%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend2.75
Dividend Growth(5Y)11.77%
DP110.8%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.88%
Min EPS beat(2)1.13%
Max EPS beat(2)6.62%
EPS beat(4)2
Avg EPS beat(4)1.86%
Min EPS beat(4)-0.25%
Max EPS beat(4)6.62%
EPS beat(8)3
Avg EPS beat(8)0.8%
EPS beat(12)4
Avg EPS beat(12)0.28%
EPS beat(16)6
Avg EPS beat(16)0.24%
Revenue beat(2)1
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)0.56%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-1.78%
Max Revenue beat(4)0.56%
Revenue beat(8)1
Avg Revenue beat(8)-1.44%
Revenue beat(12)1
Avg Revenue beat(12)-1.56%
Revenue beat(16)1
Avg Revenue beat(16)-1.53%
PT rev (1m)0%
PT rev (3m)7.32%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)41.65%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)9.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)13.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 18.24 | ||
| P/S | 2.93 | ||
| P/FCF | 8.87 | ||
| P/OCF | 7.45 | ||
| P/B | 2.08 | ||
| P/tB | 4.48 | ||
| EV/EBITDA | 10.55 |
EPS(TTM)5.72
EY7.23%
EPS(NY)4.34
Fwd EY5.48%
FCF(TTM)8.93
FCFY11.28%
OCF(TTM)10.62
OCFY13.42%
SpS27.03
BVpS38.08
TBVpS17.68
PEG (NY)N/A
PEG (5Y)39.09
Graham Number70.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 7.01% | ||
| ROCE | 9.27% | ||
| ROIC | 7.33% | ||
| ROICexc | 9.18% | ||
| ROICexgc | 22.05% | ||
| OM | 15.05% | ||
| PM (TTM) | 9.88% | ||
| GM | 41.49% | ||
| FCFM | 33.03% |
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%
ROICexgc growth 3Y-19.58%
ROICexgc 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 54.56% | ||
| Cap/Sales | 6.28% | ||
| Interest Coverage | 23.86 | ||
| Cash Conversion | 148.05% | ||
| Profit Quality | 334.45% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z | 5.46 |
F-Score6
WACC11.32%
ROIC/WACC0.65
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)-17.46%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%9.92%
EPS Next Y-9.82%
EPS Next 2Y-16.88%
EPS Next 3Y-5.08%
EPS Next 5Y5.53%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%6.57%
Revenue Next Year-4.6%
Revenue Next 2Y-7.06%
Revenue Next 3Y-2.57%
Revenue Next 5Y2.66%
EBIT growth 1Y-28.96%
EBIT growth 3Y-21.4%
EBIT growth 5Y-3.86%
EBIT Next Year5.94%
EBIT Next 3Y1.25%
EBIT Next 5Y5.44%
FCF growth 1Y-6.85%
FCF growth 3Y13.6%
FCF growth 5Y11.7%
OCF growth 1Y-8.7%
OCF growth 3Y0.98%
OCF growth 5Y5.94%
SKYWORKS SOLUTIONS INC / SWKS FAQ
What is the fundamental rating for SWKS stock?
ChartMill assigns a fundamental rating of 5 / 10 to SWKS.
What is the valuation status for SWKS stock?
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 6 / 10.
What is the earnings growth outlook for SKYWORKS SOLUTIONS INC?
The Earnings per Share (EPS) of SKYWORKS SOLUTIONS INC (SWKS) is expected to decline by -9.82% in the next year.
How sustainable is the dividend of SKYWORKS SOLUTIONS INC (SWKS) stock?
The dividend rating of SKYWORKS SOLUTIONS INC (SWKS) is 6 / 10 and the dividend payout ratio is 110.8%.