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.
In the past year SWKS had a positive cash flow from operations.
Each year in the past 5 years SWKS has been profitable.
Each year in the past 5 years SWKS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.23%, SWKS is in the better half of the industry, outperforming 66.36% of the companies in the same industry.
SWKS has a better Return On Equity (6.94%) than 60.91% of its industry peers.
The Return On Invested Capital of SWKS (6.77%) is better than 70.91% 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 10.71%.
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
Looking at the Profit Margin, with a value of 10.43%, SWKS is in the better half of the industry, outperforming 66.36% of the companies in the same industry.
In the last couple of years the Profit Margin of SWKS has declined.
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.
SWKS's Operating Margin has declined in the last couple of years.
The Gross Margin of SWKS (41.18%) is worse than 60.00% of its industry peers.
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
SWKS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SWKS has been increased compared to 1 year ago.
SWKS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SWKS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.48 indicates that SWKS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.48, SWKS is doing good in the industry, outperforming 63.64% 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 78.18% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that SWKS is not too dependend on debt financing.
SWKS has a Debt to Equity ratio of 0.17. This is comparable to the rest of the industry: SWKS outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 5.48 |
ROIC/WACC0.61
WACC11.13%
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 has a Current ratio of 4.95. This is in the better half of the industry: SWKS outperforms 73.64% of its industry peers.
A Quick Ratio of 3.84 indicates that SWKS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.84, SWKS is in the better half of the industry, outperforming 71.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.95 | ||
| Quick Ratio | 3.84 |
3. Growth
3.1 Past
SWKS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.83%.
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.
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.
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
A Price/Earnings ratio of 12.24 indicates a correct valuation of SWKS.
SWKS's Price/Earnings ratio is rather cheap when compared to the industry. SWKS is cheaper than 95.45% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. SWKS is valued rather cheaply when compared to this.
SWKS is valuated correctly with a Price/Forward Earnings ratio of 15.77.
SWKS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SWKS is cheaper than 79.09% of the companies in the same industry.
SWKS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 15.77 |
4.2 Price Multiples
89.09% of the companies in the same industry are more expensive than SWKS, based on the Enterprise Value to EBITDA ratio.
SWKS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SWKS is cheaper than 99.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.78 | ||
| EV/EBITDA | 9.32 |
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)34.57
EPS Next 2Y-16.8%
EPS Next 3Y-4.2%
5. Dividend
5.1 Amount
SWKS has a Yearly Dividend Yield of 3.83%.
Compared to an average industry Dividend Yield of 2.27, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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.
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
SWKS pays out 107.79% of its income as dividend. This is not a sustainable payout ratio.
SWKS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP107.79%
EPS Next 2Y-16.8%
EPS Next 3Y-4.2%
68.54
-2.79 (-3.91%)
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 Cap10.29B
Analysts53.75
Price Target71.27 (3.98%)
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 | 12.24 | ||
| Fwd PE | 15.77 | ||
| P/S | 2.6 | ||
| P/FCF | 7.78 | ||
| P/OCF | 6.7 | ||
| P/B | 1.73 | ||
| P/tB | 3.52 | ||
| EV/EBITDA | 9.32 |
EPS(TTM)5.6
EY8.17%
EPS(NY)4.35
Fwd EY6.34%
FCF(TTM)8.81
FCFY12.86%
OCF(TTM)10.23
OCFY14.93%
SpS26.33
BVpS39.57
TBVpS19.48
PEG (NY)N/A
PEG (5Y)34.57
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
WACC11.13%
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%