SKYWORKS SOLUTIONS INC (SWKS) Stock Fundamental Analysis
NASDAQ:SWKS - Nasdaq - US83088M1027 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SWKS. SWKS was compared to 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
SWKS had positive earnings in the past year.
In the past year SWKS had a positive cash flow from operations.
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's Return On Assets of 5.23% is fine compared to the rest of the industry. SWKS outperforms 67.27% of its industry peers.
The Return On Equity of SWKS (6.94%) is comparable to the rest of the industry.
SWKS's Return On Invested Capital of 6.77% is fine compared to the rest of the industry. SWKS outperforms 72.73% 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 11.17%.
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 better Profit Margin (10.43%) than 67.27% 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 72.73% of its industry peers.
SWKS's Operating Margin has declined in the last couple of years.
SWKS's Gross Margin of 41.18% is in line compared to the rest of the industry. SWKS outperforms 42.73% 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.
Compared to 1 year ago, SWKS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.65 indicates that SWKS is not in any danger for bankruptcy at the moment.
SWKS has a better Altman-Z score (5.65) than 63.64% of its industry peers.
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.
SWKS has a better Debt to FCF ratio (0.75) than 79.09% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that SWKS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.17, SWKS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 5.65 |
ROIC/WACC0.61
WACC11.09%
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.
The Current ratio of SWKS (4.95) is better than 71.82% of its industry peers.
A Quick Ratio of 3.84 indicates that SWKS has no problem at all paying its short term obligations.
SWKS's Quick ratio of 3.84 is fine compared to the rest of the industry. SWKS outperforms 70.00% 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%.
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)-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 1.58% 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 0.21% yearly.
EPS Next Y-17.51%
EPS Next 2Y-16.84%
EPS Next 3Y-3.96%
EPS Next 5Y1.58%
Revenue Next Year-8.23%
Revenue Next 2Y-7.35%
Revenue Next 3Y-1.92%
Revenue Next 5Y0.21%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 12.74, the valuation of SWKS can be described as correct.
Based on the Price/Earnings ratio, SWKS is valued cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, SWKS is valued rather cheaply.
With a Price/Forward Earnings ratio of 16.43, SWKS is valued correctly.
Based on the Price/Forward Earnings ratio, SWKS is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
SWKS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 16.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKS is valued cheaper than 84.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SWKS is valued cheaper than 97.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.28 | ||
| EV/EBITDA | 9.82 |
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 -3.96% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)35.99
EPS Next 2Y-16.84%
EPS Next 3Y-3.96%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 3.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.41, SWKS pays a better dividend. On top of this SWKS pays more dividend than 96.36% of the companies listed in the same industry.
SWKS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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.
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
107.79% 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.
DP107.79%
EPS Next 2Y-16.84%
EPS Next 3Y-3.96%
71.35
-1.93 (-2.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.74%
Inst Owner Change0.35%
Ins Owners0.28%
Ins Owner Change2.79%
Market Cap10.96B
Analysts54.55
Price Target69.94 (-1.98%)
Short Float %11.8%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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)-3.29%
PT rev (3m)-28.96%
EPS NQ rev (1m)15.76%
EPS NQ rev (3m)16.11%
EPS NY rev (1m)6.16%
EPS NY rev (3m)6.15%
Revenue NQ rev (1m)1.83%
Revenue NQ rev (3m)1.91%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)-3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 16.43 | ||
| P/S | 2.77 | ||
| P/FCF | 8.28 | ||
| P/OCF | 7.13 | ||
| P/B | 1.84 | ||
| P/tB | 3.75 | ||
| EV/EBITDA | 9.82 |
EPS(TTM)5.6
EY7.85%
EPS(NY)4.34
Fwd EY6.09%
FCF(TTM)8.62
FCFY12.08%
OCF(TTM)10
OCFY14.02%
SpS25.74
BVpS38.68
TBVpS19.05
PEG (NY)N/A
PEG (5Y)35.99
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
WACC11.09%
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-17.51%
EPS Next 2Y-16.84%
EPS Next 3Y-3.96%
EPS Next 5Y1.58%
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-7.35%
Revenue Next 3Y-1.92%
Revenue Next 5Y0.21%
EBIT growth 1Y-34.56%
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 1Y6.87%
FCF growth 3Y13.6%
FCF growth 5Y11.7%
OCF growth 1Y-6.06%
OCF growth 3Y0.98%
OCF growth 5Y5.94%