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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SWKS was profitable.
SWKS had a positive operating cash flow in the past year.
SWKS had positive earnings in each of the past 5 years.
In the past 5 years SWKS always reported a positive cash flow from operatings.
1.2 Ratios
SWKS's Return On Assets of 5.23% is fine compared to the rest of the industry. SWKS outperforms 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.
SWKS has a better Return On Invested Capital (6.77%) than 71.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWKS is in line with the industry average of 10.68%.
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
Looking at the Profit Margin, with a value of 10.43%, SWKS is in the better half of the industry, outperforming 66.36% of the companies in the same industry.
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.
SWKS's Operating Margin has declined in the last couple of years.
The Gross Margin of SWKS (41.18%) is worse than 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SWKS is creating some value.
Compared to 1 year ago, SWKS has more shares outstanding
The number of shares outstanding for SWKS has been reduced compared to 5 years ago.
SWKS has a better debt/assets ratio than last year.
2.2 Solvency
SWKS has an Altman-Z score of 5.49. This indicates that SWKS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.49, SWKS is doing good in the industry, outperforming 63.64% of the companies in the same industry.
The Debt to FCF ratio of SWKS is 0.75, which is an excellent value as it means it would take SWKS, only 0.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SWKS (0.75) is better than 78.18% of its industry peers.
SWKS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
SWKS has a Debt to Equity ratio (0.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 5.49 |
ROIC/WACC0.61
WACC11.18%
2.3 Liquidity
A Current Ratio of 4.95 indicates that SWKS has no problem at all paying its short term obligations.
SWKS has a Current ratio of 4.95. This is in the better half of the industry: SWKS outperforms 73.64% of its industry peers.
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 better Quick ratio (3.84) than 71.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.95 | ||
| Quick Ratio | 3.84 |
3. Growth
3.1 Past
The earnings per share for SWKS have decreased strongly by -24.83% in the last year.
SWKS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.35% yearly.
SWKS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.90%.
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
The Earnings Per Share is expected to grow by 4.30% on average over the next years.
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-17.34%
EPS Next 2Y-16.8%
EPS Next 3Y-4.2%
EPS Next 5Y4.3%
Revenue Next Year-8.23%
Revenue Next 2Y-7.24%
Revenue Next 3Y-2%
Revenue Next 5Y1.46%
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 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 12.77, SWKS is valued correctly.
SWKS's Price/Earnings ratio is rather cheap when compared to the industry. SWKS is cheaper than 94.55% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.04, SWKS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 16.46, the valuation of SWKS can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWKS indicates a somewhat cheap valuation: SWKS is cheaper than 78.18% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SWKS to the average of the S&P500 Index (37.64), we can say SWKS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 16.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKS is valued cheaper than 90.00% 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 | 8.12 | ||
| EV/EBITDA | 9.35 |
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 -4.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)36.08
EPS Next 2Y-16.8%
EPS Next 3Y-4.2%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 3.83%.
SWKS's Dividend Yield is rather good when compared to the industry average which is at 2.28. SWKS pays more dividend than 96.36% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, SWKS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
The dividend of SWKS is nicely growing with an annual growth rate of 11.77%!
SWKS has been paying a dividend for at least 10 years, so it has a reliable track record.
As SWKS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
SWKS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP107.79%
EPS Next 2Y-16.8%
EPS Next 3Y-4.2%
71.53
-0.81 (-1.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.78%
Inst Owner Change2.49%
Ins Owners0.24%
Ins Owner Change2.79%
Market Cap10.74B
Analysts53.75
Price Target71.27 (-0.36%)
Short Float %9.06%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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)3.07%
PT rev (3m)-0.05%
EPS NQ rev (1m)-1.5%
EPS NQ rev (3m)15.09%
EPS NY rev (1m)0.16%
EPS NY rev (3m)6.37%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 16.46 | ||
| P/S | 2.72 | ||
| P/FCF | 8.12 | ||
| P/OCF | 6.99 | ||
| P/B | 1.81 | ||
| P/tB | 3.67 | ||
| EV/EBITDA | 9.35 |
EPS(TTM)5.6
EY7.83%
EPS(NY)4.35
Fwd EY6.08%
FCF(TTM)8.81
FCFY12.32%
OCF(TTM)10.23
OCFY14.3%
SpS26.33
BVpS39.57
TBVpS19.48
PEG (NY)N/A
PEG (5Y)36.08
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 | 5.49 |
F-Score4
WACC11.18%
ROIC/WACC0.61
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-17.34%
EPS Next 2Y-16.8%
EPS Next 3Y-4.2%
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-8.23%
Revenue Next 2Y-7.24%
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%