SKYWORKS SOLUTIONS INC (SWKS)
US83088M1027 - Common Stock
We assign a fundamental rating of 6 out of 10 to SWKS. SWKS was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. SWKS is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SWKS is cheap, but on the other hand it scores bad on growth. These ratings would make SWKS suitable for value 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.
In the past 5 years SWKS always reported a positive cash flow from operatings.
1.2 Ratios
SWKS's Return On Assets of 10.29% is fine compared to the rest of the industry. SWKS outperforms 76.42% of its industry peers.
SWKS has a Return On Equity of 13.45%. This is in the better half of the industry: SWKS outperforms 71.70% of its industry peers.
The Return On Invested Capital of SWKS (10.97%) is better than 78.30% 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 10.73%.
The last Return On Invested Capital (10.97%) for SWKS is well below the 3 year average (16.64%), which needs to be investigated, but indicates that SWKS had better years and this may not be a problem.
| 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 better Profit Margin (18.85%) than 74.53% of its industry peers.
SWKS's Profit Margin has declined in the last couple of years.
SWKS's Operating Margin of 21.00% is fine compared to the rest of the industry. SWKS outperforms 76.42% of its industry peers.
In the last couple of years the Operating Margin of SWKS has declined.
SWKS has a Gross Margin of 41.19%. This is in the lower half of the industry: SWKS underperforms 60.38% of its industry peers.
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
SWKS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SWKS has been reduced compared to 1 year ago.
The number of shares outstanding for SWKS has been reduced compared to 5 years ago.
Compared to 1 year ago, SWKS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.87 indicates that SWKS is not in any danger for bankruptcy at the moment.
SWKS's Altman-Z score of 6.87 is fine compared to the rest of the industry. SWKS outperforms 69.81% 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.
Looking at the Debt to FCF ratio, with a value of 0.63, SWKS is in the better half of the industry, outperforming 78.30% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that SWKS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.16, SWKS perfoms like the industry average, outperforming 53.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 6.87 |
ROIC/WACC0.92
WACC11.88%
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 78.30% of its industry peers.
A Quick Ratio of 3.81 indicates that SWKS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.81, SWKS is in the better half of the industry, outperforming 71.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.19 | ||
| Quick Ratio | 3.81 |
3. Growth
3.1 Past
The earnings per share for SWKS have decreased strongly by -26.02% in the last year.
The Earnings Per Share has been growing slightly by 3.42% on average over the past years.
Looking at the last year, SWKS shows a very negative growth in Revenue. The Revenue has decreased by -11.41% in the last year.
Measured over the past years, SWKS shows a small growth in Revenue. The Revenue has been growing by 4.29% on average per year.
EPS 1Y (TTM)-26.02%
EPS 3Y11.75%
EPS 5Y3.42%
EPS growth Q2Q-23.27%
Revenue 1Y (TTM)-11.41%
Revenue growth 3Y12.46%
Revenue growth 5Y4.29%
Revenue growth Q2Q-9.29%
3.2 Future
The Earnings Per Share is expected to grow by 6.05% on average over the next years.
The Revenue is expected to grow by 4.16% on average over the next years.
EPS Next Y-17.7%
EPS Next 2Y-1.19%
EPS Next 3Y5.07%
EPS Next 5Y6.05%
Revenue Next Year-6.64%
Revenue Next 2Y0.12%
Revenue Next 3Y3.05%
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
A Price/Earnings ratio of 12.42 indicates a correct 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 92.45% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SWKS to the average of the S&P500 Index (28.28), we can say SWKS is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.10, the valuation of SWKS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SWKS is valued cheaper than 93.40% of the companies in the same industry.
SWKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKS is valued cheaper than 89.62% of the companies in the same industry.
97.17% of the companies in the same industry are more expensive than SWKS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.44 | ||
| EV/EBITDA | 9.93 |
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)3.64
EPS Next 2Y-1.19%
EPS Next 3Y5.07%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 3.03%.
SWKS's Dividend Yield is rather good when compared to the industry average which is at 2.06. SWKS pays more dividend than 94.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, SWKS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)13.44%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
SWKS pays out 49.72% of its income as dividend. This is a bit on the high side, but may be sustainable.
SWKS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP49.72%
EPS Next 2Y-1.19%
EPS Next 3Y5.07%
SKYWORKS SOLUTIONS INC
NASDAQ:SWKS (5/3/2024, 7:20:30 PM)
After market: 93.7507 +1.24 (+1.34%)92.51
+2.79 (+3.11%)
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 Cap14.82B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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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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 | 12.42 | ||
| Fwd PE | 11.1 | ||
| 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)3.64
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)
Growth
EPS 1Y (TTM)-26.02%
EPS 3Y11.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y-17.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.41%
Revenue growth 3Y12.46%
Revenue growth 5Y
Revenue growth 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