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 110 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
SWKS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SWKS has a better Return On Assets (5.23%) than 67.27% of its industry peers.
With a decent Return On Equity value of 6.94%, SWKS is doing good in the industry, outperforming 60.91% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.77%, SWKS is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SWKS is in line with the industry average of 10.57%.
The 3 year average ROIC (12.13%) for SWKS is well above the current ROIC(6.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 6.94% | ||
| ROIC | 6.77% |
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
SWKS has a Profit Margin of 10.43%. This is in the better half of the industry: SWKS outperforms 66.36% of its industry peers.
SWKS's Profit Margin has declined in the last couple of years.
The Operating Margin of SWKS (15.78%) is better than 73.64% of its industry peers.
In the last couple of years the Operating Margin of SWKS has declined.
SWKS has a Gross Margin of 41.18%. This is in the lower half of the industry: SWKS underperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of SWKS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.78% | ||
| PM (TTM) | 10.43% | ||
| GM | 41.18% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SWKS is still creating some value.
The number of shares outstanding for SWKS has been increased compared to 1 year ago.
The number of shares outstanding for SWKS has been reduced compared to 5 years ago.
The debt/assets ratio for SWKS has been reduced compared to a year ago.
2.2 Solvency
SWKS has an Altman-Z score of 5.65. This indicates that SWKS is financially healthy and has little risk of bankruptcy at the moment.
SWKS has a better Altman-Z score (5.65) than 63.64% of its industry peers.
SWKS has a debt to FCF ratio of 0.75. This is a very positive value and a sign of high solvency as it would only need 0.75 years to pay back of all of its debts.
SWKS has a better Debt to FCF ratio (0.75) than 78.18% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that SWKS is not too dependend on debt financing.
SWKS's Debt to Equity ratio of 0.17 is in line compared to the rest of the industry. SWKS outperforms 50.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 5.65 |
ROIC/WACC0.62
WACC10.87%
2.3 Liquidity
SWKS has a Current Ratio of 4.95. 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 4.95, SWKS is in the better half of the industry, outperforming 73.64% of the companies in the same industry.
SWKS has a Quick Ratio of 3.84. This indicates that SWKS is financially healthy and has no problem in meeting its short term obligations.
SWKS has a Quick ratio of 3.84. This is in the better half of the industry: SWKS outperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.95 | ||
| Quick Ratio | 3.84 |
3. Growth
3.1 Past
SWKS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.83%.
Measured over the past 5 years, SWKS shows a small growth in Earnings Per Share. The EPS has been growing by 0.35% on average per year.
Looking at the last year, SWKS shows a very negative growth in Revenue. The Revenue has decreased by -12.90% in the last year.
The Revenue has been growing slightly by 4.35% on average over the past years.
EPS 1Y (TTM)-24.83%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%-20%
Revenue 1Y (TTM)-12.9%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%-8.87%
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 4.30% on average per year.
SWKS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.46% yearly.
EPS Next Y-17.51%
EPS Next 2Y-16.84%
EPS Next 3Y-3.96%
EPS Next 5Y4.3%
Revenue Next Year-8.27%
Revenue Next 2Y-7.35%
Revenue Next 3Y-2%
Revenue Next 5Y1.46%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.00, SWKS is valued correctly.
Based on the Price/Earnings ratio, SWKS is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SWKS to the average of the S&P500 Index (26.55), we can say SWKS is valued rather cheaply.
With a Price/Forward Earnings ratio of 16.77, SWKS is valued correctly.
73.64% of the companies in the same industry are more expensive than SWKS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.40, SWKS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 16.77 |
4.2 Price Multiples
SWKS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SWKS is cheaper than 87.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SWKS is valued cheaper than 98.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.26 | ||
| EV/EBITDA | 9.82 |
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 -3.96% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)36.73
EPS Next 2Y-16.84%
EPS Next 3Y-3.96%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 3.96%. 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 2.61. SWKS pays more dividend than 95.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, SWKS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
On average, the dividend of SWKS grows each year by 11.77%, which is quite nice.
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)11.77%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
SWKS pays out 107.79% 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.
DP107.79%
EPS Next 2Y-16.84%
EPS Next 3Y-3.96%
72.82
-2.13 (-2.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change0.33%
Ins Owners0.28%
Ins Owner Change2.79%
Market Cap10.93B
Analysts53.75
Price Target69.02 (-5.22%)
Short Float %11.16%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend2.75
Dividend Growth(5Y)11.77%
DP107.79%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.53%
Min EPS beat(2)-0.08%
Max EPS beat(2)1.13%
EPS beat(4)1
Avg EPS beat(4)-0.34%
Min EPS beat(4)-2.17%
Max EPS beat(4)1.13%
EPS beat(8)2
Avg EPS beat(8)-0.04%
EPS beat(12)4
Avg EPS beat(12)-0.13%
EPS beat(16)5
Avg EPS beat(16)-0.28%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)-1.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-1.78%
Max Revenue beat(4)-1.4%
Revenue beat(8)0
Avg Revenue beat(8)-1.75%
Revenue beat(12)0
Avg Revenue beat(12)-1.72%
Revenue beat(16)0
Avg Revenue beat(16)-1.61%
PT rev (1m)-1.32%
PT rev (3m)-7.89%
EPS NQ rev (1m)16.84%
EPS NQ rev (3m)16.84%
EPS NY rev (1m)6.16%
EPS NY rev (3m)6.15%
Revenue NQ rev (1m)1.9%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 16.77 | ||
| P/S | 2.77 | ||
| P/FCF | 8.26 | ||
| P/OCF | 7.12 | ||
| P/B | 1.84 | ||
| P/tB | 3.74 | ||
| EV/EBITDA | 9.82 |
EPS(TTM)5.6
EY7.69%
EPS(NY)4.34
Fwd EY5.96%
FCF(TTM)8.81
FCFY12.1%
OCF(TTM)10.23
OCFY14.05%
SpS26.33
BVpS39.57
TBVpS19.48
PEG (NY)N/A
PEG (5Y)36.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.23% | ||
| ROE | 6.94% | ||
| ROCE | 8.57% | ||
| ROIC | 6.77% | ||
| ROICexc | 8.54% | ||
| ROICexgc | 17.91% | ||
| OM | 15.78% | ||
| PM (TTM) | 10.43% | ||
| GM | 41.18% | ||
| FCFM | 33.48% |
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-Score4
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 46.52% | ||
| Cap/Sales | 5.39% | ||
| Interest Coverage | 24.55 | ||
| Cash Conversion | 142.05% | ||
| Profit Quality | 321.06% | ||
| Current Ratio | 4.95 | ||
| Quick Ratio | 3.84 | ||
| Altman-Z | 5.65 |
F-Score4
WACC10.87%
ROIC/WACC0.62
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)-24.83%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%-20%
EPS Next Y-17.51%
EPS Next 2Y-16.84%
EPS Next 3Y-3.96%
EPS Next 5Y4.3%
Revenue 1Y (TTM)-12.9%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%-8.87%
Revenue Next Year-8.27%
Revenue Next 2Y-7.35%
Revenue Next 3Y-2%
Revenue Next 5Y1.46%
EBIT growth 1Y-34.56%
EBIT growth 3Y-21.4%
EBIT growth 5Y-3.86%
EBIT Next Year-1.72%
EBIT Next 3Y0.66%
EBIT Next 5Y4.02%
FCF growth 1Y6.87%
FCF growth 3Y13.6%
FCF growth 5Y11.7%
OCF growth 1Y-6.06%
OCF growth 3Y0.98%
OCF growth 5Y5.94%