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Skyworks Solutions Inc
SWKS : NASDAQ : Technology
$55.04 | %
Today's Range: 54.56 - 55.50
Avg. Daily Volume: 3,649,800
10/24/14 - 4:00 PM ET

Financial Analysis


SKYWORKS SOLUTIONS INC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. SKYWORKS SOLUTIONS INC is extremely liquid. Currently, the Quick Ratio is 4.88 which clearly shows the ability to cover any short-term cash needs. SWKS managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 19.44% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)587.0436.1
EBITDA ($mil)179.2110.9
EBIT ($mil)149.485.5
Net Income ($mil)111.465.7


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)893.3400.3
Total Assets ($mil)2688.92217.9
Total Debt ($mil)0.00.0
Equity ($mil)2389.02000.1


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin49.1147.65
EBITDA Margin30.5225.42
Operating Margin25.4519.61
Sales Turnover0.760.78
Return on Assets13.6411.51
Return on Equity15.3612.77
Debt Q3 FY14 Q3 FY13
Current Ratio5.916.04
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)189.2187.7
Div / share0.110.0
EPS0.580.34
Book value / share12.6310.66
Institutional Own % n/a n/a
Avg Daily Volume3925030.03465453.0

Valuation


BUY. SKYWORKS SOLUTIONS INC's P/E ratio indicates a premium compared to an average of 24.65 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 18.06. Conducting a second comparison, its price-to-book ratio of 4.08 indicates a significant premium versus the S&P 500 average of 2.49 and a premium versus the industry average of 3.57. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SKYWORKS SOLUTIONS INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SWKS 26.97 Peers 24.65   SWKS 13.35 Peers 16.45

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

SWKS is trading at a valuation on par with its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SWKS is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SWKS 12.57 Peers 17.25   SWKS 0.22 Peers 0.64

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

SWKS is trading at a valuation on par with its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SWKS trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SWKS 4.08 Peers 3.57   SWKS 44.69 Peers 67.02

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SWKS is trading at a premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SWKS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SWKS 4.75 Peers 3.67   SWKS 18.09 Peers 14.65

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SWKS is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SWKS has a sales growth rate that exceeds its peers.

 

 

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