58.96 USD
-0.71 (-1.19%)
58.94 USD
-0.02 (-0.03%)
We assign a fundamental rating of 5 out of 10 to SWKS. SWKS was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. SWKS has an average financial health and profitability rating. SWKS is valued correctly, but it does not seem to be growing. SWKS also has an excellent dividend rating. These ratings would make SWKS suitable 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.
- In the past 5 years SWKS has always been profitable.
- Each year in the past 5 years SWKS had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of SWKS (6.03%) is better than 71.68% of its industry peers.
- Looking at the Return On Equity, with a value of 8.29%, SWKS is in the better half of the industry, outperforming 69.91% of the companies in the same industry.
- The Return On Invested Capital of SWKS (6.28%) is better than 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 10.75%.
| 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
- The Profit Margin of SWKS (11.67%) is better than 67.26% of its industry peers.
- SWKS's Profit Margin has declined in the last couple of years.
- The Operating Margin of SWKS (12.83%) is better than 68.14% of its industry peers.
- 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
- SWKS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- SWKS has less shares outstanding than it did 1 year ago.
- SWKS has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for SWKS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.47 indicates that SWKS is not in any danger for bankruptcy at the moment.
- SWKS's Altman-Z score of 4.47 is in line compared to the rest of the industry. SWKS outperforms 53.98% of its industry peers.
- The Debt to FCF ratio of SWKS is 0.93, which is an excellent value as it means it would take SWKS, only 0.93 years of fcf income to pay off all of its debts.
- SWKS has a better Debt to FCF ratio (0.93) than 77.88% 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.
- 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 | 4.47 |
ROIC/WACC0.6
WACC10.48%
2.3 Liquidity
- SWKS has a Current Ratio of 2.33. This indicates that SWKS is financially healthy and has no problem in meeting its short term obligations.
- SWKS has a Current ratio of 2.33. This is in the lower half of the industry: SWKS underperforms 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
- SWKS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.57%.
- The Earnings Per Share has been decreasing by -0.63% on average over the past years.
- SWKS shows a decrease in Revenue. In the last year, the revenue decreased by -2.18%.
- 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
- SWKS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.78% yearly.
- 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-8.31%
Revenue Next 2Y-1.85%
Revenue Next 3Y2.54%
Revenue Next 5Y4.85%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.94 indicates a reasonable 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.
- SWKS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 13.07, SWKS is valued correctly.
- 94.69% of the companies in the same industry are more expensive than SWKS, based on the Price/Forward Earnings ratio.
- SWKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.94 | ||
| Fwd PE | 13.07 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SWKS is valued cheaper than 95.58% 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 | 8.15 | ||
| EV/EBITDA | 8.16 |
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
- SWKS has a Yearly Dividend Yield of 4.86%, which is a nice return.
- In the last 3 months the price of SWKS has falen by -20.37%. 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 0.51, SWKS pays a better dividend. On top of this SWKS pays more dividend than 98.23% 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 | 4.86% |
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.
- 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.