SKYWORKS SOLUTIONS INC (SWKS) Stock Fundamental Analysis
NASDAQ:SWKS - Nasdaq - US83088M1027 - Common Stock - Currency: USD
Taking everything into account, SWKS scores 6 out of 10 in our fundamental rating. SWKS was compared to 109 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 valuation in line with the averages, but on the other hand it scores bad on growth. 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.
Each year in the past 5 years SWKS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SWKS (6.32%) is better than 68.81% of its industry peers.
With a decent Return On Equity value of 8.23%, SWKS is doing good in the industry, outperforming 63.30% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.09%, SWKS is doing good in the industry, outperforming 73.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SWKS is in line with the industry average of 11.28%.
The 3 year average ROIC (12.13%) for SWKS is well above the current ROIC(7.09%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 8.23% | ||
| ROIC | 7.09% |
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 13.02%, SWKS is in the better half of the industry, outperforming 68.81% of the companies in the same industry.
SWKS's Profit Margin has declined in the last couple of years.
SWKS has a Operating Margin of 17.19%. This is in the better half of the industry: SWKS outperforms 75.23% of its industry peers.
In the last couple of years the Operating Margin of SWKS has declined.
SWKS has a Gross Margin (40.94%) which is in line with its industry peers.
SWKS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.19% | ||
| PM (TTM) | 13.02% | ||
| GM | 40.94% |
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
SWKS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SWKS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SWKS has less shares outstanding
SWKS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.26 indicates that SWKS is not in any danger for bankruptcy at the moment.
SWKS has a Altman-Z score of 5.26. This is in the better half of the industry: SWKS outperforms 65.14% of its industry peers.
SWKS has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.81, SWKS is in the better half of the industry, outperforming 79.82% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that SWKS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.16, SWKS is in line with its industry, outperforming 48.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | 5.26 |
ROIC/WACC0.79
WACC9.01%
2.3 Liquidity
SWKS has a Current Ratio of 5.94. This indicates that SWKS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.94, SWKS belongs to the top of the industry, outperforming 83.49% of the companies in the same industry.
A Quick Ratio of 4.73 indicates that SWKS has no problem at all paying its short term obligations.
SWKS has a better Quick ratio (4.73) than 80.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.94 | ||
| Quick Ratio | 4.73 |
3. Growth
3.1 Past
The earnings per share for SWKS have decreased strongly by -25.38% in the last year.
The Earnings Per Share has been growing slightly by 0.35% on average over the past years.
SWKS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.91%.
Measured over the past years, SWKS shows a small growth in Revenue. The Revenue has been growing by 4.35% on average per year.
EPS 1Y (TTM)-25.38%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%-18.78%
Revenue 1Y (TTM)-12.91%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%-11.07%
3.2 Future
Based on estimates for the next years, SWKS will show a small growth in Earnings Per Share. The EPS will grow by 1.58% on average per year.
The Revenue is expected to grow by 0.21% on average over the next years.
EPS Next Y-22.29%
EPS Next 2Y-18.31%
EPS Next 3Y-3.31%
EPS Next 5Y1.58%
Revenue Next Year-8.67%
Revenue Next 2Y-6.7%
Revenue Next 3Y-1.89%
Revenue Next 5Y0.21%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.98 indicates a reasonable valuation of SWKS.
Based on the Price/Earnings ratio, SWKS is valued cheaply inside the industry as 88.99% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.88. SWKS is valued rather cheaply when compared to this.
SWKS is valuated correctly with a Price/Forward Earnings ratio of 15.48.
Based on the Price/Forward Earnings ratio, SWKS is valued a bit cheaper than the industry average as 77.06% of the companies are valued more expensively.
SWKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 15.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKS is valued cheaper than 85.32% 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 98.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.13 | ||
| EV/EBITDA | 7.82 |
4.3 Compensation for Growth
The decent profitability rating of SWKS may justify a higher PE ratio.
SWKS's earnings are expected to decrease with -3.31% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)31.01
EPS Next 2Y-18.31%
EPS Next 3Y-3.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.55%, SWKS is a good candidate for dividend investing.
In the last 3 months the price of SWKS has falen by -27.58%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SWKS's Dividend Yield is rather good when compared to the industry average which is at 2.75. SWKS pays more dividend than 96.33% of the companies in the same industry.
SWKS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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.
SWKS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)11.77%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
84.05% of the earnings are spent on dividend by SWKS. 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.
DP84.05%
EPS Next 2Y-18.31%
EPS Next 3Y-3.31%
NASDAQ:SWKS (5/1/2025, 12:32:09 PM)
64.885
+0.61 (+0.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change0.26%
Ins Owners0.28%
Ins Owner Change11.1%
Market Cap9.96B
Analysts54.55
Price Target71.3 (9.89%)
Short Float %12.72%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
Yearly Dividend2.75
Dividend Growth(5Y)11.77%
DP84.05%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.16%
Min EPS beat(2)-0.25%
Max EPS beat(2)-0.08%
EPS beat(4)0
Avg EPS beat(4)-0.7%
Min EPS beat(4)-2.17%
Max EPS beat(4)-0.08%
EPS beat(8)1
Avg EPS beat(8)-0.45%
EPS beat(12)3
Avg EPS beat(12)-0.39%
EPS beat(16)4
Avg EPS beat(16)-0.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-1.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.66%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)-1.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.73%
Revenue beat(12)0
Avg Revenue beat(12)-1.71%
Revenue beat(16)0
Avg Revenue beat(16)-1.51%
PT rev (1m)-4.85%
PT rev (3m)-28.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-3.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 15.48 | ||
| P/S | 2.46 | ||
| P/FCF | 8.13 | ||
| P/OCF | 6.98 | ||
| P/B | 1.56 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 7.82 |
EPS(TTM)5.91
EY9.11%
EPS(NY)4.19
Fwd EY6.46%
FCF(TTM)7.98
FCFY12.29%
OCF(TTM)9.29
OCFY14.32%
SpS26.34
BVpS41.68
TBVpS21.75
PEG (NY)N/A
PEG (5Y)31.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.32% | ||
| ROE | 8.23% | ||
| ROCE | 8.97% | ||
| ROIC | 7.09% | ||
| ROICexc | 9.14% | ||
| ROICexgc | 18.62% | ||
| OM | 17.19% | ||
| PM (TTM) | 13.02% | ||
| GM | 40.94% | ||
| FCFM | 30.28% |
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-Score6
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 44.47% | ||
| Cap/Sales | 5% | ||
| Interest Coverage | 27.49 | ||
| Cash Conversion | 124.09% | ||
| Profit Quality | 232.56% | ||
| Current Ratio | 5.94 | ||
| Quick Ratio | 4.73 | ||
| Altman-Z | 5.26 |
F-Score6
WACC9.01%
ROIC/WACC0.79
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)-25.38%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%-18.78%
EPS Next Y-22.29%
EPS Next 2Y-18.31%
EPS Next 3Y-3.31%
EPS Next 5Y1.58%
Revenue 1Y (TTM)-12.91%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%-11.07%
Revenue Next Year-8.67%
Revenue Next 2Y-6.7%
Revenue Next 3Y-1.89%
Revenue Next 5Y0.21%
EBIT growth 1Y-34.41%
EBIT growth 3Y-21.4%
EBIT growth 5Y-3.86%
EBIT Next Year-2.33%
EBIT Next 3Y1.33%
EBIT Next 5Y3.17%
FCF growth 1Y7.74%
FCF growth 3Y13.6%
FCF growth 5Y11.7%
OCF growth 1Y-11.71%
OCF growth 3Y0.98%
OCF growth 5Y5.94%