SKYWORKS SOLUTIONS INC (SWKS) Stock Fundamental Analysis
USA - NASDAQ:SWKS - US83088M1027 - Common Stock
60.5 USD
-2.09 (-3.34%)
60.5 USD
0 (0%)
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. Both the profitability and the financial health of SWKS get a neutral evaluation. Nothing too spectacular is happening here. SWKS has a correct valuation and a medium growth rate. Finally SWKS also has an excellent dividend rating. This makes SWKS very considerable for dividend investing!
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.
Each year in the past 5 years SWKS has 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 (6.03%) than 73.21% of its industry peers.
SWKS has a better Return On Equity (8.29%) than 68.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.13%, SWKS is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SWKS is below the industry average of 10.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 8.29% | ||
| ROIC | 6.13% |
ROA(3y)8.29%
ROA(5y)11.34%
ROE(3y)11.28%
ROE(5y)17.09%
ROIC(3y)8.81%
ROIC(5y)11.73%
1.3 Margins
The Profit Margin of SWKS (11.67%) is better than 69.64% 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 69.64% of the companies in the same industry.
In the last couple of years the Operating Margin of SWKS has declined.
The Gross Margin of SWKS (41.16%) is comparable to the rest of the industry.
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
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 less shares outstanding
Compared to 5 years ago, SWKS has less shares outstanding
The debt/assets ratio for SWKS is higher compared to a year ago.
2.2 Solvency
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.
The Debt to FCF ratio of SWKS (0.93) is better than 77.68% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that SWKS is not too dependend on debt financing.
SWKS has a Debt to Equity ratio (0.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.93 | ||
| Altman-Z | N/A |
ROIC/WACC0.58
WACC10.54%
2.3 Liquidity
A Current Ratio of 2.35 indicates that SWKS has no problem at all paying its short term obligations.
With a Current ratio value of 2.35, SWKS is not doing good in the industry: 61.61% of the companies in the same industry are doing better.
SWKS has a Quick Ratio of 1.71. 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 1.71, SWKS is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The earnings per share for SWKS have decreased by -5.57% in the last year.
Measured over the past years, SWKS shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.63% on average per year.
The Revenue has decreased by -2.18% in the past year.
SWKS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.02% yearly.
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 quite strong growth in Earnings Per Share. The EPS will grow by 8.27% on average per year.
Based on estimates for the next years, SWKS will show a small growth in Revenue. The Revenue will grow by 5.07% on average per year.
EPS Next Y-25.13%
EPS Next 2Y-3.63%
EPS Next 3Y0.57%
EPS Next 5Y8.27%
Revenue Next Year-9.19%
Revenue Next 2Y-1.36%
Revenue Next 3Y1.65%
Revenue Next 5Y5.07%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.20 indicates a reasonable valuation of SWKS.
Compared to the rest of the industry, the Price/Earnings ratio of SWKS indicates a rather cheap valuation: SWKS is cheaper than 95.54% of the companies listed in the same industry.
SWKS is valuated cheaply when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.63, which 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 88.39% of the companies listed in the same industry.
SWKS is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 13.63 |
4.2 Price Multiples
91.96% of the companies in the same industry are more expensive than SWKS, based on the Enterprise Value to EBITDA ratio.
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 | 8.35 | ||
| EV/EBITDA | 8.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.63%
EPS Next 3Y0.57%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 4.17%, which is a nice return.
In the last 3 months the price of SWKS has falen by -21.72%. 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 96.43% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SWKS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of SWKS is nicely growing with an annual growth rate of 8.92%!
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)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-3.63%
EPS Next 3Y0.57%
60.5
-2.09 (-3.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.56%
Inst Owner Change-0.72%
Ins Owners0.23%
Ins Owner Change5.74%
Market Cap8.98B
Revenue(TTM)4.09B
Net Income(TTM)477.10M
Analysts56.88
Price Target76.73 (26.83%)
Short Float %8.62%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend2.8
Dividend Growth(5Y)8.92%
DP90.67%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.14%
Min EPS beat(2)6.62%
Max EPS beat(2)23.65%
EPS beat(4)3
Avg EPS beat(4)7.83%
Min EPS beat(4)-0.08%
Max EPS beat(4)23.65%
EPS beat(8)3
Avg EPS beat(8)3.43%
EPS beat(12)4
Avg EPS beat(12)2.08%
EPS beat(16)6
Avg EPS beat(16)1.63%
Revenue beat(2)2
Avg Revenue beat(2)3.73%
Min Revenue beat(2)0.56%
Max Revenue beat(2)6.9%
Revenue beat(4)2
Avg Revenue beat(4)0.99%
Min Revenue beat(4)-1.78%
Max Revenue beat(4)6.9%
Revenue beat(8)2
Avg Revenue beat(8)-0.37%
Revenue beat(12)2
Avg Revenue beat(12)-0.85%
Revenue beat(16)2
Avg Revenue beat(16)-1.02%
PT rev (1m)0.33%
PT rev (3m)2.63%
EPS NQ rev (1m)9.14%
EPS NQ rev (3m)23.72%
EPS NY rev (1m)2.73%
EPS NY rev (3m)2.14%
Revenue NQ rev (1m)2.51%
Revenue NQ rev (3m)9.03%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 13.63 | ||
| P/S | 2.2 | ||
| P/FCF | 8.35 | ||
| P/OCF | 6.9 | ||
| P/B | 1.56 | ||
| P/tB | 3.24 | ||
| EV/EBITDA | 8.7 |
EPS(TTM)5.93
EY9.8%
EPS(NY)4.44
Fwd EY7.34%
FCF(TTM)7.25
FCFY11.98%
OCF(TTM)8.76
OCFY14.49%
SpS27.53
BVpS38.79
TBVpS18.67
PEG (NY)N/A
PEG (5Y)N/A
Graham Number71.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 8.29% | ||
| ROCE | 7.76% | ||
| ROIC | 6.13% | ||
| ROICexc | 7.72% | ||
| ROICexgc | 17.41% | ||
| OM | 12.83% | ||
| PM (TTM) | 11.67% | ||
| GM | 41.16% | ||
| FCFM | 26.33% |
ROA(3y)8.29%
ROA(5y)11.34%
ROE(3y)11.28%
ROE(5y)17.09%
ROIC(3y)8.81%
ROIC(5y)11.73%
ROICexc(3y)10.59%
ROICexc(5y)13.55%
ROICexgc(3y)22.22%
ROICexgc(5y)28.92%
ROCE(3y)11.15%
ROCE(5y)14.85%
ROICexgc growth 3Y-21.35%
ROICexgc growth 5Y-9.9%
ROICexc growth 3Y-23.77%
ROICexc growth 5Y-16.85%
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%
F-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.93 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 48.57% | ||
| Cap/Sales | 5.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 131.75% | ||
| Profit Quality | 225.51% | ||
| Current Ratio | 2.35 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | N/A |
F-Score5
WACC10.54%
ROIC/WACC0.58
Cap/Depr(3y)42.54%
Cap/Depr(5y)70.16%
Cap/Sales(3y)4.94%
Cap/Sales(5y)7.38%
Profit Quality(3y)221.94%
Profit Quality(5y)162.46%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.57%
EPS 3Y-19.17%
EPS 5Y-0.63%
EPS Q2Q%13.55%
EPS Next Y-25.13%
EPS Next 2Y-3.63%
EPS Next 3Y0.57%
EPS Next 5Y8.27%
Revenue 1Y (TTM)-2.18%
Revenue growth 3Y-9.34%
Revenue growth 5Y4.02%
Sales Q2Q%7.33%
Revenue Next Year-9.19%
Revenue Next 2Y-1.36%
Revenue Next 3Y1.65%
Revenue Next 5Y5.07%
EBIT growth 1Y-33.41%
EBIT growth 3Y-30.44%
EBIT growth 5Y-10.36%
EBIT Next Year0.39%
EBIT Next 3Y10.21%
EBIT Next 5Y11.05%
FCF growth 1Y-34.46%
FCF growth 3Y5.55%
FCF growth 5Y5.95%
OCF growth 1Y-28.71%
OCF growth 3Y-2.98%
OCF growth 5Y1.55%
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 5 / 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 -25.13% in the next year.
How sustainable is the dividend of SKYWORKS SOLUTIONS INC (SWKS) stock?
The dividend rating of SKYWORKS SOLUTIONS INC (SWKS) is 7 / 10 and the dividend payout ratio is 90.67%.