SKYWORKS SOLUTIONS INC (SWKS) Stock Fundamental Analysis
NASDAQ:SWKS - US83088M1027 - Common Stock
73.6 USD
-1.46 (-1.95%)
73.6 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SWKS. SWKS was compared to 112 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
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 better Return On Assets (5.14%) than 70.54% of its industry peers.
SWKS's Return On Equity of 7.01% is fine compared to the rest of the industry. SWKS outperforms 65.18% of its industry peers.
The Return On Invested Capital of SWKS (7.33%) is better than 74.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SWKS is in line with the industry average of 10.87%.
The last Return On Invested Capital (7.33%) 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 | 5.14% | ||
| 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
With a decent Profit Margin value of 9.88%, SWKS is doing good in the industry, outperforming 69.64% of the companies in the same industry.
SWKS's Profit Margin has declined in the last couple of years.
SWKS has a better Operating Margin (15.05%) than 73.21% of its industry peers.
In the last couple of years the Operating Margin of SWKS has declined.
SWKS has a Gross Margin (41.49%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SWKS has declined.
| 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
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.
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
An Altman-Z score of 5.30 indicates that SWKS is not in any danger for bankruptcy at the moment.
SWKS has a better Altman-Z score (5.30) than 63.39% 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 78.57% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that SWKS is not too dependend on debt financing.
The Debt to Equity ratio of SWKS (0.09) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 5.3 |
ROIC/WACC0.66
WACC11.06%
2.3 Liquidity
A Current Ratio of 2.39 indicates that SWKS has no problem at all paying its short term obligations.
SWKS has a worse Current ratio (2.39) than 62.50% of its industry peers.
A Quick Ratio of 1.80 indicates that SWKS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.80, SWKS is doing worse than 63.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
SWKS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.46%.
The Earnings Per Share has been growing slightly by 0.35% on average over the past years.
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
The Earnings Per Share is expected to grow by 5.53% 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 2.66% yearly.
EPS Next Y-10.07%
EPS Next 2Y-17.19%
EPS Next 3Y-5.33%
EPS Next 5Y5.53%
Revenue Next Year-4.6%
Revenue Next 2Y-7.19%
Revenue Next 3Y-2.69%
Revenue Next 5Y2.66%
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 12.87, the valuation of SWKS can be described as correct.
Based on the Price/Earnings ratio, SWKS is valued cheaply inside the industry as 95.54% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.03, SWKS is valued rather cheaply.
With a Price/Forward Earnings ratio of 17.09, SWKS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWKS indicates a somewhat cheap valuation: SWKS is cheaper than 78.57% of the companies listed in the same industry.
SWKS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.87 | ||
| Fwd PE | 17.09 |
4.2 Price Multiples
SWKS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SWKS is cheaper than 90.18% 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 99.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.24 | ||
| EV/EBITDA | 10.03 |
4.3 Compensation for Growth
SWKS has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SWKS's earnings are expected to decrease with -5.33% in the coming years.
PEG (NY)N/A
PEG (5Y)36.34
EPS Next 2Y-17.19%
EPS Next 3Y-5.33%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 3.80%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.35, SWKS pays a better dividend. On top of this SWKS pays more dividend than 95.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, SWKS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
5.2 History
On average, the dividend of SWKS grows each year by 11.77%, which is quite nice.
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-17.19%
EPS Next 3Y-5.33%
73.6
-1.46 (-1.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.96%
Inst Owner Change-2.72%
Ins Owners0.24%
Ins Owner Change1.82%
Market Cap10.92B
Analysts54.12
Price Target76.48 (3.91%)
Short Float %7.98%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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)2.3%
PT rev (3m)9.35%
EPS NQ rev (1m)44.22%
EPS NQ rev (3m)51.85%
EPS NY rev (1m)8.8%
EPS NY rev (3m)9.02%
Revenue NQ rev (1m)13.69%
Revenue NQ rev (3m)13.52%
Revenue NY rev (1m)3.92%
Revenue NY rev (3m)3.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.87 | ||
| Fwd PE | 17.09 | ||
| P/S | 2.72 | ||
| P/FCF | 8.24 | ||
| P/OCF | 6.93 | ||
| P/B | 1.93 | ||
| P/tB | 4.16 | ||
| EV/EBITDA | 10.03 |
EPS(TTM)5.72
EY7.77%
EPS(NY)4.31
Fwd EY5.85%
FCF(TTM)8.93
FCFY12.13%
OCF(TTM)10.62
OCFY14.43%
SpS27.03
BVpS38.08
TBVpS17.68
PEG (NY)N/A
PEG (5Y)36.34
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 | 5.3 |
F-Score6
WACC11.06%
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-10.07%
EPS Next 2Y-17.19%
EPS Next 3Y-5.33%
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-4.6%
Revenue Next 2Y-7.19%
Revenue Next 3Y-2.69%
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%