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Market Cap

US$31.1b

Last Updated

2021/04/13 22:22 UTC

Data Sources

Company Financials +

Executive Summary

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and rest of Asia-Pacific. More Details

Rewards

Trading at 18% below our estimate of its fair value

Earnings are forecast to grow 9.72% per year

Risk Analysis

No risks detected for SWKS from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Skyworks Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SWKS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SWKS's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

SWKS

0.5%

US Semiconductor

1.3%

US Market


1 Year Return

97.8%

SWKS

79.5%

US Semiconductor

53.9%

US Market

Return vs Industry: SWKS exceeded the US Semiconductor industry which returned 86.2% over the past year.

Return vs Market: SWKS exceeded the US Market which returned 57.9% over the past year.


Shareholder returns

SWKSIndustryMarket
7 Day0.2%0.5%1.3%
30 Day9.9%9.2%2.8%
90 Day19.9%7.7%6.6%
1 Year100.5%97.8%82.3%79.5%56.6%53.9%
3 Year100.2%90.3%118.4%107.1%62.7%52.3%
5 Year183.2%162.1%344.7%301.5%120.5%95.9%

Long-Term Price Volatility Vs. Market

How volatile is Skyworks Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Skyworks Solutions undervalued compared to its fair value and its price relative to the market?

18.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SWKS ($189.29) is trading below our estimate of fair value ($230.98)

Significantly Below Fair Value: SWKS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SWKS is good value based on its PE Ratio (29.7x) compared to the US Semiconductor industry average (39.6x).

PE vs Market: SWKS is poor value based on its PE Ratio (29.7x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: SWKS is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: SWKS is overvalued based on its PB Ratio (7.1x) compared to the US Semiconductor industry average (5.1x).


Future Growth

How is Skyworks Solutions forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWKS's forecast earnings growth (9.7% per year) is above the savings rate (2%).

Earnings vs Market: SWKS's earnings (9.7% per year) are forecast to grow slower than the US market (18.6% per year).

High Growth Earnings: SWKS's earnings are forecast to grow, but not significantly.

Revenue vs Market: SWKS's revenue (7.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: SWKS's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SWKS's Return on Equity is forecast to be high in 3 years time (33.1%)


Past Performance

How has Skyworks Solutions performed over the past 5 years?

-2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWKS has high quality earnings.

Growing Profit Margin: SWKS's current net profit margins (26.9%) are higher than last year (25%).


Past Earnings Growth Analysis

Earnings Trend: SWKS's earnings have declined by 2% per year over the past 5 years.

Accelerating Growth: SWKS's earnings growth over the past year (29.5%) exceeds its 5-year average (-2% per year).

Earnings vs Industry: SWKS earnings growth over the past year (29.5%) underperformed the Semiconductor industry 30%.


Return on Equity

High ROE: SWKS's Return on Equity (24.2%) is considered high.


Financial Health

How is Skyworks Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: SWKS's short term assets ($2.6B) exceed its short term liabilities ($507.6M).

Long Term Liabilities: SWKS's short term assets ($2.6B) exceed its long term liabilities ($497.3M).


Debt to Equity History and Analysis

Debt Level: SWKS is debt free.

Reducing Debt: SWKS has not had any debt for past 5 years.

Debt Coverage: SWKS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SWKS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Skyworks Solutions's current dividend yield, its reliability and sustainability?

1.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SWKS's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: SWKS's dividend (1.06%) is low compared to the top 25% of dividend payers in the US market (3.5%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SWKS has been paying a dividend for less than 10 years.

Growing Dividend: SWKS's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.5%), SWKS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SWKS's dividends in 3 years are forecast to be well covered by earnings (18.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Liam Griffin (53 yo)

4.92yrs

Tenure

US$21,800,439

Compensation

Mr. Liam K. Griffin has been the President of Skyworks Solutions, Inc. since May 8, 2014, and its Chief Executive Officer since May 11, 2016. Mr. Griffin has been an Independent Director at National Instru...


CEO Compensation Analysis

Compensation vs Market: Liam's total compensation ($USD21.80M) is above average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Liam's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SWKS's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: SWKS's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Skyworks Solutions, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Skyworks Solutions, Inc.
  • Ticker: SWKS
  • Exchange: NasdaqGS
  • Founded: 1962
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$31.056b
  • Shares outstanding: 165.09m
  • Website: https://www.skyworksinc.com

Number of Employees


Location

  • Skyworks Solutions, Inc.
  • 5260 California Avenue
  • Irvine
  • California
  • 92617
  • United States

Listings


Biography

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property in the United States, China, South...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/13 22:22
End of Day Share Price2021/04/13 00:00
Earnings2021/01/01
Annual Earnings2020/10/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.