NasdaqGS:SWKS

Stock Analysis Report

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Executive Summary

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property worldwide.


Snowflake Analysis

Flawless balance sheet and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.2%

SWKS

3.8%

US Semiconductor

2.3%

US Market


1 Year Return

62.0%

SWKS

36.3%

US Semiconductor

6.7%

US Market

Return vs Industry: SWKS exceeded the US Semiconductor industry which returned 39.2% over the past year.

Return vs Market: SWKS exceeded the US Market which returned 6.1% over the past year.


Shareholder returns

SWKSIndustryMarket
7 Day2.2%3.8%2.3%
30 Day-0.5%2.2%1.5%
90 Day45.9%26.8%17.8%
1 Year65.0%62.0%38.9%36.3%9.0%6.7%
3 Year32.7%26.2%81.8%72.0%36.6%27.7%
5 Year37.9%27.5%200.0%170.6%64.2%46.2%

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?

24.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SWKS ($131.22) is trading below our estimate of fair value ($174.11)

Significantly Below Fair Value: SWKS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SWKS is good value based on its PE Ratio (28.3x) compared to the US Semiconductor industry average (37.4x).

PE vs Market: SWKS is poor value based on its PE Ratio (28.3x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: SWKS is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: SWKS is overvalued based on its PB Ratio (5.3x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Skyworks Solutions forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWKS's forecast earnings growth (19.5% per year) is above the savings rate (2.2%).

Earnings vs Market: SWKS's earnings (19.5% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: SWKS's revenue (11.1% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: SWKS's revenue (11.1% 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 (29.7%)


Next Steps

Past Performance

How has Skyworks Solutions performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWKS has high quality earnings.

Growing Profit Margin: SWKS's current net profit margins (24.3%) are lower than last year (29.1%).


Past Earnings Growth Analysis

Earnings Trend: SWKS's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: SWKS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SWKS had negative earnings growth (-26%) over the past year, making it difficult to compare to the Semiconductor industry average (-10.8%).


Return on Equity

High ROE: SWKS's Return on Equity (19.1%) is considered low.


Next Steps

Financial Health

How is Skyworks Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: SWKS's short term assets ($2.2B) exceed its short term liabilities ($362.2M).

Long Term Liabilities: SWKS's short term assets ($2.2B) exceed its long term liabilities ($476.9M).


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


Next Steps

Dividend

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

1.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SWKS's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.7%).

High Dividend: SWKS's dividend (1.34%) is low compared to the top 25% of dividend payers in the US market (4.69%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.7%), 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 (21.4% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Liam Griffin (53yo)

4.17yrs

Tenure

US$13,660,593

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 Instrum ...


CEO Compensation Analysis

Compensation vs Market: Liam's total compensation ($USD13.66M) is about average for companies of similar size in the US market ($USD11.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Liam Griffin
CEO, President & Director4.17yrsUS$13.66m0.041% $8.9m
Kris Sennesael
Senior VP & CFO3.92yrsUS$4.10m0.020% $4.3m
Robert Terry
Senior VP3.67yrsUS$2.67m0.0083% $1.8m
Carlos Bori
Senior Vice President of Sales & Marketing4.08yrsUS$3.81m0.015% $3.2m
Reza Kasnavi
Senior Vice President of Technology & Manufacturing0.67yrno datano data
Mitchell Haws
Vice President of Investor Relations4yrsno datano data
Karilee Durham
Senior Vice President of Human Resources2.25yrsno data0.0052% $1.1m
Pilar Barrigas
Head of Media Relationsno datano datano data
Joel King
Senior VP & GM of Mobile Solutions Business2.5yrsno datano data
Bruce Freyman
3.42yrsUS$1.73mno data

3.7yrs

Average Tenure

52yo

Average Age

Experienced Management: SWKS's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Liam Griffin
CEO, President & Director4.17yrsUS$13.66m0.041% $8.9m
Robert Schriesheim
Independent Non-Employee Director14.17yrsUS$282.83k0.046% $10.0m
Kevin Beebe
Independent Non-Employee Director16.5yrsUS$283.62k0.036% $7.8m
David Aldrich
Chairman of the Board6.17yrsUS$392.83k0.10% $22.4m
Timothy Furey
Independent Non-Employee Director22.5yrsUS$279.17k0.013% $2.8m
David McGlade
Independent Non-Employee Director15.42yrsUS$282.50k0.030% $6.6m
Christine King
Lead Independent Director1.17yrsUS$310.61k0.012% $2.5m
Alan Batey
Independent Director0.92yrUS$196.56kno data
Kimberly Stevenson
Independent Director2yrsUS$267.32k0.0018% $389.7k

6.2yrs

Average Tenure

59yo

Average Age

Experienced Board: SWKS's board of directors are considered experienced (6.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SWKS insiders have only sold shares 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$21.892b
  • Shares outstanding: 166.84m
  • Website: https://www.skyworksinc.com

Number of Employees


Location

  • Skyworks Solutions, Inc.
  • 5221 California Avenue
  • Irvine
  • California
  • 92617
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWKSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2002
AWMDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2002
AWMXTRA (XETRA Trading Platform)YesCommon StockDEEURJun 2002
SWKSWBAG (Wiener Boerse AG)YesCommon StockATEURJun 2002
0L77LSE (London Stock Exchange)YesCommon StockGBUSDJun 2002
AWMETLX (Eurotlx)YesCommon StockITEURJun 2002
SWKS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2002

Biography

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property worldwide. Its product portfolio includes amplifiers, antenna tuners, attenuators, circulators/isolators, DC/DC converters, demodulators, detectors, diodes, directional couplers, diversity receive modules, filters, front-end modules, hybrids, LED drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, receivers, switches, synthesizers, technical ceramics, voltage controlled oscillators/synthesizers, and voltage regulators, as well as wireless radio integrated circuits. The company provides its products for use in the aerospace, automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. The company was founded in 1962 and is headquartered in Irvine, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 23:54
End of Day Share Price2020/07/10 00:00
Earnings2020/03/27
Annual Earnings2019/09/27


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.