SKYWORKS SOLUTIONS INC (SWKS) Stock Fundamental Analysis
NASDAQ:SWKS - Nasdaq - US83088M1027 - Common Stock - Currency: USD
Overall SWKS gets a fundamental rating of 6 out of 10. We evaluated SWKS against 110 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.
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.
Each year in the past 5 years SWKS had a positive operating cash flow.
1.2 Ratios
SWKS has a better Return On Assets (5.23%) than 67.27% of its industry peers.
SWKS has a better Return On Equity (6.94%) than 60.91% of its industry peers.
SWKS's Return On Invested Capital of 6.77% is fine compared to the rest of the industry. SWKS outperforms 71.82% of its industry peers.
SWKS had an Average Return On Invested Capital over the past 3 years of 12.13%. This 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
SWKS's Profit Margin of 10.43% is fine compared to the rest of the industry. SWKS outperforms 66.36% of its industry peers.
SWKS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.78%, SWKS is in the better half of the industry, outperforming 73.64% of the companies in the same industry.
In the last couple of years the Operating Margin of SWKS has declined.
Looking at the Gross Margin, with a value of 41.18%, SWKS is doing worse than 60.00% of the companies in the same industry.
SWKS's Gross Margin has declined in the last couple of years.
| 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.
SWKS has more shares outstanding than it did 1 year ago.
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 5.48. This indicates that SWKS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.48, SWKS is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
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's Debt to FCF ratio of 0.75 is fine compared to the rest of the industry. SWKS outperforms 78.18% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that SWKS is not too dependend on debt financing.
The Debt to Equity ratio of SWKS (0.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 5.48 |
ROIC/WACC0.61
WACC11.19%
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.
SWKS's Current ratio of 4.95 is fine compared to the rest 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.
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 -12.90%.
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
SWKS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.30% yearly.
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
Based on the Price/Earnings ratio of 12.85, the valuation of SWKS can be described as correct.
95.45% of the companies in the same industry are more expensive than SWKS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SWKS to the average of the S&P500 Index (27.91), we can say SWKS is valued rather cheaply.
With a Price/Forward Earnings ratio of 16.55, SWKS is valued correctly.
Based on the Price/Forward Earnings ratio, SWKS is valued a bit cheaper than the industry average as 79.09% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SWKS to the average of the S&P500 Index (37.11), we can say SWKS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.85 | ||
| Fwd PE | 16.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWKS indicates a rather cheap valuation: SWKS is cheaper than 90.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SWKS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.16 | ||
| EV/EBITDA | 9.32 |
4.3 Compensation for Growth
SWKS has a very decent profitability rating, which 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)36.28
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.
SWKS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
On average, the dividend of SWKS grows each year by 11.77%, which is quite nice.
SWKS has paid a dividend for at least 10 years, which is 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.
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-16.8%
EPS Next 3Y-4.2%
71.94
+0.62 (+0.87%)
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 Cap10.80B
Analysts53.75
Price Target71.27 (-0.93%)
Short Float %8.57%
Short Ratio4.23
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 | 12.85 | ||
| Fwd PE | 16.55 | ||
| P/S | 2.73 | ||
| P/FCF | 8.16 | ||
| P/OCF | 7.03 | ||
| P/B | 1.82 | ||
| P/tB | 3.69 | ||
| EV/EBITDA | 9.32 |
EPS(TTM)5.6
EY7.78%
EPS(NY)4.35
Fwd EY6.04%
FCF(TTM)8.81
FCFY12.25%
OCF(TTM)10.23
OCFY14.22%
SpS26.33
BVpS39.57
TBVpS19.48
PEG (NY)N/A
PEG (5Y)36.28
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 | 5.48 |
F-Score4
WACC11.19%
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%