SKYWORKS SOLUTIONS INC (SWKS) Stock Fundamental Analysis
NASDAQ:SWKS - Nasdaq - US83088M1027 - Common Stock - Currency: USD
SWKS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. SWKS has an excellent financial health rating, but there are some minor concerns on its profitability. SWKS is valued correctly, 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.
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 Return On Assets of 5.23%. This is in the better half of the industry: SWKS outperforms 67.27% of its industry peers.
SWKS has a better Return On Equity (6.94%) than 60.91% of its industry peers.
SWKS has a Return On Invested Capital of 6.77%. This is in the better half of the industry: SWKS outperforms 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 10.58%.
The last Return On Invested Capital (6.77%) for SWKS is well below the 3 year average (12.13%), which needs to be investigated, but indicates that SWKS had better years and this may not be a problem.
| 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
The Profit Margin of SWKS (10.43%) is better than 66.36% of its industry peers.
SWKS's Profit Margin has declined in the last couple of years.
SWKS's Operating Margin of 15.78% is fine compared to the rest of the industry. SWKS outperforms 73.64% of its industry peers.
SWKS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 41.18%, SWKS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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.
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
An Altman-Z score of 5.80 indicates that SWKS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.80, 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.
With a decent Debt to FCF ratio value of 0.75, SWKS is doing good in the industry, outperforming 78.18% of the companies in the same industry.
SWKS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, SWKS is in line with its industry, outperforming 50.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 5.8 |
ROIC/WACC0.69
WACC9.76%
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's Quick ratio of 3.84 is fine compared to the rest 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
The earnings per share for SWKS have decreased strongly by -24.83% in the last year.
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
SWKS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.30% yearly.
Based on estimates for the next years, SWKS will show a small growth in Revenue. The Revenue will grow by 1.46% on average per year.
EPS Next Y-17.48%
EPS Next 2Y-17.04%
EPS Next 3Y-4.2%
EPS Next 5Y4.3%
Revenue Next Year-8.27%
Revenue Next 2Y-7.34%
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
A Price/Earnings ratio of 13.96 indicates a correct valuation of SWKS.
SWKS's Price/Earnings ratio is rather cheap when compared to the industry. SWKS is cheaper than 92.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, SWKS is valued a bit cheaper.
SWKS is valuated rather expensively with a Price/Forward Earnings ratio of 18.09.
Based on the Price/Forward Earnings ratio, SWKS is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
SWKS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 18.09 |
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 87.27% of the companies listed in the same industry.
99.09% 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 | 8.87 | ||
| EV/EBITDA | 10.27 |
4.3 Compensation for Growth
The decent profitability rating of SWKS may justify a higher PE ratio.
A cheap valuation may be justified as SWKS's earnings are expected to decrease with -4.20% in the coming years.
PEG (NY)N/A
PEG (5Y)39.43
EPS Next 2Y-17.04%
EPS Next 3Y-4.2%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 3.75%.
SWKS's Dividend Yield is rather good when compared to the industry average which is at 2.28. SWKS pays more dividend than 95.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, SWKS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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.
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-17.04%
EPS Next 3Y-4.2%
78.18
+1.02 (+1.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.78%
Inst Owner Change0.33%
Ins Owners0.24%
Ins Owner Change2.79%
Market Cap11.74B
Analysts53.75
Price Target69.15 (-11.55%)
Short Float %9.26%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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)-1.13%
PT rev (3m)-7.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.84%
EPS NY rev (1m)0.04%
EPS NY rev (3m)6.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.96 | ||
| Fwd PE | 18.09 | ||
| P/S | 2.97 | ||
| P/FCF | 8.87 | ||
| P/OCF | 7.64 | ||
| P/B | 1.98 | ||
| P/tB | 4.01 | ||
| EV/EBITDA | 10.27 |
EPS(TTM)5.6
EY7.16%
EPS(NY)4.32
Fwd EY5.53%
FCF(TTM)8.81
FCFY11.27%
OCF(TTM)10.23
OCFY13.09%
SpS26.33
BVpS39.57
TBVpS19.48
PEG (NY)N/A
PEG (5Y)39.43
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 | 5.8 |
F-Score4
WACC9.76%
ROIC/WACC0.69
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-17.48%
EPS Next 2Y-17.04%
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-8.27%
Revenue Next 2Y-7.34%
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%