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. SWKS has an excellent financial health rating, but there are some minor concerns on its profitability. SWKS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SWKS was profitable.
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
With a decent Return On Assets value of 10.29%, SWKS is doing good in the industry, outperforming 76.85% of the companies in the same industry.
The Return On Equity of SWKS (13.45%) is better than 70.37% of its industry peers.
SWKS's Return On Invested Capital of 10.97% is fine compared to the rest of the industry. SWKS outperforms 77.78% of its industry peers.
SWKS had an Average Return On Invested Capital over the past 3 years of 16.64%. This is significantly above the industry average of 10.85%.
The 3 year average ROIC (16.64%) for SWKS is well above the current ROIC(10.97%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.29% | ||
| ROE | 13.45% | ||
| ROIC | 10.97% |
ROA(3y)14.49%
ROA(5y)15.41%
ROE(3y)22.59%
ROE(5y)21.61%
ROIC(3y)16.64%
ROIC(5y)17.24%
1.3 Margins
SWKS has a Profit Margin of 18.85%. This is in the better half of the industry: SWKS outperforms 75.93% of its industry peers.
SWKS's Profit Margin has declined in the last couple of years.
The Operating Margin of SWKS (21.00%) is better than 76.85% of its industry peers.
In the last couple of years the Operating Margin of SWKS has declined.
SWKS has a Gross Margin (41.19%) which is comparable to the rest of the industry.
SWKS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21% | ||
| PM (TTM) | 18.85% | ||
| GM | 41.19% |
OM growth 3Y-3.61%
OM growth 5Y-6.67%
PM growth 3Y-5.34%
PM growth 5Y-2.81%
GM growth 3Y-2.79%
GM growth 5Y-2.62%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SWKS is creating some 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.47 indicates that SWKS is not in any danger for bankruptcy at the moment.
The Altman-Z score of SWKS (7.47) is better than 70.37% of its industry peers.
SWKS has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
The Debt to FCF ratio of SWKS (0.63) is better than 78.70% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that SWKS is not too dependend on debt financing.
SWKS has a Debt to Equity ratio (0.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 7.47 |
ROIC/WACC0.9
WACC12.2%
2.3 Liquidity
SWKS has a Current Ratio of 5.19. This indicates that SWKS is financially healthy and has no problem in meeting its short term obligations.
SWKS has a Current ratio of 5.19. This is in the better half of the industry: SWKS outperforms 77.78% of its industry peers.
A Quick Ratio of 3.81 indicates that SWKS has no problem at all paying its short term obligations.
SWKS has a Quick ratio of 3.81. This is in the better half of the industry: SWKS outperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.19 | ||
| Quick Ratio | 3.81 |
3. Growth
3.1 Past
SWKS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.02%.
SWKS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.42% yearly.
The Revenue for SWKS has decreased by -11.41% 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 4.29% yearly.
EPS 1Y (TTM)-26.02%
EPS 3Y11.75%
EPS 5Y3.42%
EPS Q2Q%-23.27%
Revenue 1Y (TTM)-11.41%
Revenue growth 3Y12.46%
Revenue growth 5Y4.29%
Sales Q2Q%-9.29%
3.2 Future
SWKS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.05% yearly.
The Revenue is expected to grow by 4.16% on average over the next years.
EPS Next Y-24.93%
EPS Next 2Y-11.12%
EPS Next 3Y-0.5%
EPS Next 5Y6.05%
Revenue Next Year-12.85%
Revenue Next 2Y-6.05%
Revenue Next 3Y-0.63%
Revenue Next 5Y4.16%
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
The Price/Earnings ratio is 14.01, which indicates a correct valuation of SWKS.
Based on the Price/Earnings ratio, SWKS is valued cheaper than 91.67% 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 28.39.
The Price/Forward Earnings ratio is 15.47, which indicates a correct valuation of SWKS.
SWKS's Price/Forward Earnings ratio is rather cheap when compared to the industry. SWKS is cheaper than 86.11% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.91, SWKS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.01 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKS is valued cheaper than 89.81% 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 95.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.67 | ||
| EV/EBITDA | 11.24 |
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)4.1
EPS Next 2Y-11.12%
EPS Next 3Y-0.5%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 2.56%. 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 1.77. SWKS pays more dividend than 93.52% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, SWKS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
The dividend of SWKS is nicely growing with an annual growth rate of 13.44%!
SWKS has paid a dividend for at least 10 years, which is a reliable track record.
SWKS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.44%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
49.72% of the earnings are spent on dividend by SWKS. This is a bit on the high side, but may be sustainable.
The dividend of SWKS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP49.72%
EPS Next 2Y-11.12%
EPS Next 3Y-0.5%
SKYWORKS SOLUTIONS INC
NASDAQ:SWKS (6/14/2024, 7:00:01 PM)
After market: 104.29 -0.08 (-0.08%)104.37
-1.96 (-1.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.01 | ||
| Fwd PE | 15.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)4.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.29% | ||
| ROE | 13.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21% | ||
| PM (TTM) | 18.85% | ||
| GM | 41.19% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.19 | ||
| Quick Ratio | 3.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-26.02%
EPS 3Y11.75%
EPS 5Y
EPS Q2Q%
EPS Next Y-24.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.41%
Revenue growth 3Y12.46%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y