NasdaqGS:SWKS

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 23.9% below its fair value

Earnings are forecast to grow 12.24% per year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


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

-1.5%

SWKS

2.1%

US Semiconductor

-1.3%

US Market


1 Year Return

68.8%

SWKS

46.6%

US Semiconductor

22.0%

US Market

Return vs Industry: SWKS exceeded the US Semiconductor industry which returned 48.5% over the past year.

Return vs Market: SWKS exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

SWKSIndustryMarket
7 Day-1.5%2.1%-1.3%
30 Day0.1%5.0%1.8%
90 Day35.8%17.2%9.3%
1 Year72.3%68.8%49.5%46.6%24.6%22.0%
3 Year39.5%32.9%93.4%82.9%49.2%39.6%
5 Year58.5%47.3%173.9%147.8%77.9%58.3%

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?

17.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SWKS ($123.34) is trading below our estimate of fair value ($162.16)

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 (25.1x) compared to the Semiconductor industry average (34.5x).

PE vs Market: SWKS is poor value based on its PE Ratio (25.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SWKS is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: SWKS is overvalued based on its PB Ratio (5.1x) compared to the US Semiconductor industry average (3.3x).


Next Steps

Future Growth

How is Skyworks Solutions forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWKS's forecast earnings growth (12.2% per year) is above the savings rate (1.7%).

Earnings vs Market: SWKS's earnings (16.3% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: SWKS's revenue (11.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SWKS's revenue (7.3% 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 (28.5%)


Next Steps

Past Performance

How has Skyworks Solutions performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWKS has high quality earnings.

Growing Profit Margin: SWKS's current net profit margins (25%) are lower than last year (29.8%).


Past Earnings Growth Analysis

Earnings Trend: SWKS's earnings have grown by 7.7% 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 (-7.1%) over the past year, making it difficult to compare to the Semiconductor industry average (-15.8%).


Return on Equity

High ROE: SWKS's Return on Equity (19.4%) is considered low.


Return on Assets


Return on Capital Employed


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 ($374.0M).

Long Term Liabilities: SWKS has no long term liabilities.


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

Inventory Level: SWKS has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SWKS's debt is covered by short term assets.


Next Steps

Dividend

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

1.44%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: SWKS's dividend (1.43%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SWKS's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 low payout ratio (25%), 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 (22.4% payout ratio).


Next Steps

Management

What is the CEO of Skyworks Solutions's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Liam Griffin (52yo)

3.7yrs

Tenure

US$9,342,113

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 ($USD9.34M) is about average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Liam's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

51yo

Average Age

Experienced Management: SWKS's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

9.7yrs

Average Tenure

59yo

Average Age

Experienced Board: SWKS's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

Insider Buying: SWKS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$2,715,00013 Dec 19
David Aldrich
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares25,000
Max PriceUS$108.60
SellUS$201,52026 Nov 19
Timothy Furey
EntityIndividual
Role
Member of the Board of Directors
Non-Employee Director
Shares2,000
Max PriceUS$100.76
SellUS$2,928,30022 Nov 19
David Aldrich
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares30,000
Max PriceUS$97.61
SellUS$291,55017 Sep 19
Timothy Furey
EntityIndividual
Role
Member of the Board of Directors
Non-Employee Director
Shares3,500
Max PriceUS$83.30
SellUS$183,77518 Jun 19
Timothy Furey
EntityIndividual
Role
Member of the Board of Directors
Non-Employee Director
Shares2,500
Max PriceUS$73.51

Ownership Breakdown

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


Management Team

  • Bruce Freyman (58yo)

    • Tenure: 2.9yrs
    • Compensation: US$1.73m
  • Mitch Haws (55yo)

    Vice President of Investor Relations

    • Tenure: 3.5yrs
  • Liam Griffin (52yo)

    CEO, President & Director

    • Tenure: 3.7yrs
    • Compensation: US$9.34m
  • Pilar Barrigas

    Head of Media Relations

    • Reza Kasnavi (46yo)

      Senior Vice President of Technology & Manufacturing

      • Tenure: 0.2yrs
    • Kris Sennesael (50yo)

      Senior VP & CFO

      • Tenure: 3.4yrs
      • Compensation: US$3.33m
    • Kari Durham (51yo)

      Senior Vice President of Human Resources

      • Carlos Bori (48yo)

        Senior Vice President of Sales & Marketing

        • Tenure: 3.6yrs
        • Compensation: US$3.15m
      • Joel King (45yo)

        Senior VP & GM of Mobile Solutions Business

        • Tenure: 2yrs
      • Robert Terry (53yo)

        Senior VP

        • Tenure: 3.2yrs
        • Compensation: US$2.24m

      Board Members

      • Rob Schriesheim (58yo)

        Independent Non-Employee Director

        • Tenure: 13.7yrs
        • Compensation: US$300.11k
      • Bala Iyer (62yo)

        Non-Employee Director

        • Tenure: 17.6yrs
        • Compensation: US$297.36k
      • Kevin Beebe (60yo)

        Non-Employee Director

        • Tenure: 16yrs
        • Compensation: US$293.61k
      • Dave Aldrich (62yo)

        Chairman of the Board

        • Tenure: 5.7yrs
        • Compensation: US$10.81m
      • Tim Furey (61yo)

        Non-Employee Director

        • Tenure: 22yrs
        • Compensation: US$286.61k
      • Dave McGlade (58yo)

        Non-Employee Director

        • Tenure: 14.9yrs
        • Compensation: US$286.61k
      • Liam Griffin (52yo)

        CEO, President & Director

        • Tenure: 3.7yrs
        • Compensation: US$9.34m
      • Chris King (69yo)

        Lead Independent Director

        • Tenure: 0.7yrs
        • Compensation: US$291.61k
      • Alan Batey (56yo)

        Director

        • Tenure: 0.4yrs
      • Kim Stevenson (56yo)

        Independent Director

        • Tenure: 1.5yrs
        • Compensation: US$205.00k

      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$21.840b
      • Shares outstanding: 170.38m
      • 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

      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 Analysis2020/01/24 23:54
      End of Day Share Price2020/01/24 00:00
      Earnings2019/12/27
      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.