SKYWORKS SOLUTIONS INC (SWKS) Stock Fundamental Analysis
NASDAQ:SWKS - Nasdaq - US83088M1027 - Common Stock - Currency: USD
Taking everything into account, SWKS scores 5 out of 10 in our fundamental rating. SWKS was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of SWKS get a neutral evaluation. Nothing too spectacular is happening here. SWKS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SWKS was profitable.
SWKS had a positive operating cash flow in the past year.
Each year in the past 5 years SWKS has been profitable.
In the past 5 years SWKS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.14%, SWKS is in the better half of the industry, outperforming 66.36% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.01%, SWKS is in the better half of the industry, outperforming 62.73% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.33%, SWKS is doing good in the industry, outperforming 73.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SWKS is in line with the industry average of 10.86%.
The 3 year average ROIC (12.13%) for SWKS is well above the current ROIC(7.33%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 7.01% | ||
| ROIC | 7.33% |
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 9.88%. This is in the better half of the industry: SWKS outperforms 67.27% of its industry peers.
In the last couple of years the Profit Margin of SWKS has declined.
SWKS has a better Operating Margin (15.05%) than 72.73% of its industry peers.
In the last couple of years the Operating Margin of SWKS has declined.
Looking at the Gross Margin, with a value of 41.49%, SWKS is in line with its industry, outperforming 42.73% of the companies in the same industry.
SWKS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.05% | ||
| PM (TTM) | 9.88% | ||
| GM | 41.49% |
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
SWKS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SWKS has more shares outstanding
SWKS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SWKS has an improved debt to assets ratio.
2.2 Solvency
SWKS has an Altman-Z score of 5.29. This indicates that SWKS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.29, SWKS is doing good in the industry, outperforming 64.55% 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.
SWKS has a Debt to FCF ratio of 0.75. This is in the better half of the industry: SWKS outperforms 79.09% of its industry peers.
SWKS has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
SWKS has a Debt to Equity ratio (0.09) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 5.29 |
ROIC/WACC0.66
WACC11.13%
2.3 Liquidity
A Current Ratio of 2.39 indicates that SWKS has no problem at all paying its short term obligations.
With a Current ratio value of 2.39, SWKS is not doing good in the industry: 65.45% of the companies in the same industry are doing better.
SWKS has a Quick Ratio of 1.80. This is a normal value and indicates that SWKS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.80, SWKS is doing worse than 62.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
The earnings per share for SWKS have decreased strongly by -17.46% 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 decrease in Revenue. In the last year, the revenue decreased by -8.24%.
The Revenue has been growing slightly by 4.35% on average over the past years.
EPS 1Y (TTM)-17.46%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%9.92%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%6.57%
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 5.53% on average per year.
Based on estimates for the next years, SWKS will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.
EPS Next Y-17.34%
EPS Next 2Y-16.8%
EPS Next 3Y-4.2%
EPS Next 5Y5.53%
Revenue Next Year-8.2%
Revenue Next 2Y-7.25%
Revenue Next 3Y-2.1%
Revenue Next 5Y2.66%
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.
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
SWKS is valuated correctly with a Price/Earnings ratio of 13.13.
93.64% of the companies in the same industry are more expensive than SWKS, based on the Price/Earnings ratio.
SWKS is valuated cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
SWKS is valuated rather expensively with a Price/Forward Earnings ratio of 17.28.
Based on the Price/Forward Earnings ratio, SWKS is valued a bit cheaper than the industry average as 74.55% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.94, SWKS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 17.28 |
4.2 Price Multiples
88.18% of the companies in the same industry are more expensive than SWKS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SWKS is valued cheaper than 99.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.41 | ||
| EV/EBITDA | 10.02 |
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)37.09
EPS Next 2Y-16.8%
EPS Next 3Y-4.2%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 3.77%. 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 2.42. SWKS pays more dividend than 95.45% of the companies in the same industry.
SWKS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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
110.80% 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.
DP110.8%
EPS Next 2Y-16.8%
EPS Next 3Y-4.2%
75.12
+0.19 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.96%
Inst Owner Change-2.74%
Ins Owners0.24%
Ins Owner Change2.7%
Market Cap11.15B
Analysts54.12
Price Target74.76 (-0.48%)
Short Float %8.3%
Short Ratio4.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend2.75
Dividend Growth(5Y)11.77%
DP110.8%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.88%
Min EPS beat(2)1.13%
Max EPS beat(2)6.62%
EPS beat(4)2
Avg EPS beat(4)1.86%
Min EPS beat(4)-0.25%
Max EPS beat(4)6.62%
EPS beat(8)3
Avg EPS beat(8)0.8%
EPS beat(12)4
Avg EPS beat(12)0.28%
EPS beat(16)6
Avg EPS beat(16)0.24%
Revenue beat(2)1
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)0.56%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-1.78%
Max Revenue beat(4)0.56%
Revenue beat(8)1
Avg Revenue beat(8)-1.44%
Revenue beat(12)1
Avg Revenue beat(12)-1.56%
Revenue beat(16)1
Avg Revenue beat(16)-1.53%
PT rev (1m)8.12%
PT rev (3m)6.9%
EPS NQ rev (1m)36.4%
EPS NQ rev (3m)46.21%
EPS NY rev (1m)0%
EPS NY rev (3m)6.37%
Revenue NQ rev (1m)13.06%
Revenue NQ rev (3m)12.75%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 17.28 | ||
| P/S | 2.78 | ||
| P/FCF | 8.41 | ||
| P/OCF | 7.07 | ||
| P/B | 1.97 | ||
| P/tB | 4.25 | ||
| EV/EBITDA | 10.02 |
EPS(TTM)5.72
EY7.61%
EPS(NY)4.35
Fwd EY5.79%
FCF(TTM)8.93
FCFY11.88%
OCF(TTM)10.62
OCFY14.14%
SpS27.03
BVpS38.08
TBVpS17.68
PEG (NY)N/A
PEG (5Y)37.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.14% | ||
| ROE | 7.01% | ||
| ROCE | 9.27% | ||
| ROIC | 7.33% | ||
| ROICexc | 9.18% | ||
| ROICexgc | 22.05% | ||
| OM | 15.05% | ||
| PM (TTM) | 9.88% | ||
| GM | 41.49% | ||
| FCFM | 33.03% |
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-Score6
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.75 | ||
| Debt/EBITDA | 0.47 | ||
| Cap/Depr | 54.56% | ||
| Cap/Sales | 6.28% | ||
| Interest Coverage | 23.86 | ||
| Cash Conversion | 148.05% | ||
| Profit Quality | 334.45% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z | 5.29 |
F-Score6
WACC11.13%
ROIC/WACC0.66
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)-17.46%
EPS 3Y-15.75%
EPS 5Y0.35%
EPS Q2Q%9.92%
EPS Next Y-17.34%
EPS Next 2Y-16.8%
EPS Next 3Y-4.2%
EPS Next 5Y5.53%
Revenue 1Y (TTM)-8.24%
Revenue growth 3Y-6.49%
Revenue growth 5Y4.35%
Sales Q2Q%6.57%
Revenue Next Year-8.2%
Revenue Next 2Y-7.25%
Revenue Next 3Y-2.1%
Revenue Next 5Y2.66%
EBIT growth 1Y-28.96%
EBIT growth 3Y-21.4%
EBIT growth 5Y-3.86%
EBIT Next Year-2.41%
EBIT Next 3Y0.46%
EBIT Next 5Y5.44%
FCF growth 1Y-6.85%
FCF growth 3Y13.6%
FCF growth 5Y11.7%
OCF growth 1Y-8.7%
OCF growth 3Y0.98%
OCF growth 5Y5.94%