SKYWORKS SOLUTIONS INC (SWKS)
US83088M1027 - Common Stock
Overall SWKS gets a fundamental rating of 6 out of 10. We evaluated SWKS against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. While SWKS has a great health rating, its profitability is only average at the moment. SWKS has a decent growth rate and is not valued too expensively.
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.
SWKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.20%, SWKS is in the better half of the industry, outperforming 71.30% of the companies in the same industry.
SWKS's Return On Equity of 9.41% is fine compared to the rest of the industry. SWKS outperforms 65.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.10%, SWKS is in the better half of the industry, outperforming 75.93% 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 11.24%.
The 3 year average ROIC (12.13%) for SWKS is well above the current ROIC(8.10%). The reason for the recent decline needs to be investigated.
| 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
Looking at the Profit Margin, with a value of 14.27%, SWKS is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
In the last couple of years the Profit Margin of SWKS has declined.
The Operating Margin of SWKS (18.84%) is better than 75.00% of its industry peers.
SWKS's Operating Margin has declined in the last couple of years.
SWKS has a Gross Margin (41.19%) 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 | 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
SWKS has less shares outstanding than it did 5 years ago.
SWKS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.61 indicates that SWKS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.61, SWKS is doing good in the industry, outperforming 67.59% of the companies in the same industry.
The Debt to FCF ratio of SWKS is 0.61, which is an excellent value as it means it would take SWKS, only 0.61 years of fcf income to pay off all of its debts.
SWKS has a better Debt to FCF ratio (0.61) than 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 | 6.61 |
ROIC/WACC0.54
WACC15.11%
2.3 Liquidity
A Current Ratio of 5.54 indicates that SWKS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.54, SWKS belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
SWKS has a Quick Ratio of 4.24. This indicates that SWKS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 4.24, SWKS is in the better half of 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.
Measured over the past 5 years, SWKS shows a small growth in Earnings Per Share. The EPS has been growing by 0.35% on average per year.
The Revenue for SWKS has decreased by -12.45% in the past year. This is quite bad
The Revenue has been growing slightly by 4.35% on average over the past years.
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
SWKS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.32% yearly.
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-5.1%
Revenue Next 2Y1.47%
Revenue Next 3Y3.47%
Revenue Next 5Y4.39%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 14.13.
Based on the Price/Earnings ratio, SWKS is valued cheaper than 91.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of SWKS to the average of the S&P500 Index (27.73), we can say SWKS is valued slightly cheaper.
SWKS is valuated correctly with a Price/Forward Earnings ratio of 16.12.
SWKS's Price/Forward Earnings ratio is rather cheap when compared to the industry. SWKS is cheaper than 82.41% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SWKS to the average of the S&P500 Index (22.83), we can say SWKS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 16.12 |
4.2 Price Multiples
SWKS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SWKS is cheaper than 88.89% of the companies in the same industry.
SWKS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SWKS is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.65 | ||
| EV/EBITDA | 10.68 |
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)39.92
EPS Next 2Y1.34%
EPS Next 3Y7.26%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 3.17%. Purely for dividend investing, there may be better candidates out there.
SWKS's Dividend Yield is rather good when compared to the industry average which is at 2.31. SWKS pays more dividend than 92.59% of the companies in the same industry.
SWKS's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
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.
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 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 (12/20/2024, 8:00:00 PM)
After market: 88.75 0 (0%)88.75
+0.49 (+0.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.62%
Inst Owner Change-0.78%
Ins Owners0.35%
Ins Owner Change7.35%
Market Cap14.19B
Analysts67.22
Price Target100.3 (13.01%)
Short Float %7.06%
Short Ratio4.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.17% |
Dividend Growth(5Y)11.77%
DP73.67%
Div Incr Years5
Div Non Decr Years5
Ex-Date
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)0%
PT rev (3m)-14.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.95%
EPS NY rev (1m)-15.7%
EPS NY rev (3m)-16.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.69%
Revenue NY rev (1m)-5.63%
Revenue NY rev (3m)-5.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.13 | ||
| Fwd PE | 16.12 | ||
| P/S | 3.4 | ||
| P/FCF | 8.65 | ||
| P/OCF | 7.78 | ||
| P/B | 2.24 | ||
| P/tB | 4.35 | ||
| EV/EBITDA | 10.68 |
EPS(TTM)6.28
EY7.08%
EPS(NY)5.51
Fwd EY6.2%
FCF(TTM)10.27
FCFY11.57%
OCF(TTM)11.41
OCFY12.86%
SpS26.13
BVpS39.62
TBVpS20.38
PEG (NY)N/A
PEG (5Y)39.92
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 | 6.61 |
F-Score5
WACC15.11%
ROIC/WACC0.54
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-5.1%
Revenue Next 2Y1.47%
Revenue Next 3Y3.47%
Revenue Next 5Y4.39%
EBIT growth 1Y-31.73%
EBIT growth 3Y-21.4%
EBIT growth 5Y-3.86%
EBIT Next Year7.92%
EBIT Next 3Y10.65%
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%