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Skyworks Solutions Inc.
SWKS : NASDAQ : Technology

$23.68 -0.05 | -0.21%
Today's Range: 23.54 - 24.00
Avg. Daily Volume: 3,521,300
05/21/13 - 4:00 PM ET

Financial Analysis


SKYWORKS SOLUTIONS INC's gross profit margin for the second quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SKYWORKS SOLUTIONS INC is extremely liquid. Currently, the Quick Ratio is 4.26 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 16.26% 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.



Income Statement Q2 FY13 Q2 FY12
Net Sales ($mil)425.2364.69
EBITDA ($mil)99.482.07
EBIT ($mil)73.755.04
Net Income ($mil)61.734.03


Balance Sheet Q2 FY13 Q2 FY12
Cash & Equiv. ($mil)458.8307.34
Total Assets ($mil)2216.92007.33
Total Debt ($mil)0.00.0
Equity ($mil)2000.01720.24


Profitability Q2 FY13 Q2 FY12
Gross Profit Margin45.9147.38
EBITDA Margin23.3722.5
Operating Margin17.3315.09
Sales Turnover0.760.76
Return on Assets10.7810.3
Return on Equity11.9512.02
Debt Q2 FY13 Q2 FY12
Current Ratio5.933.1
Debt/Capital0.00.0
Interest Expense0.00.11
Interest Coverage0.0514.38


Share Data Q2 FY13 Q2 FY12
Shares outstanding (mil)191.1189.53
Div / share0.00.0
EPS0.320.18
Book value / share10.479.08
Institutional Own % n/a n/a
Avg Daily Volume3889142.04456662.0

Valuation


BUY. SKYWORKS SOLUTIONS INC's P/E ratio indicates a discount compared to an average of 23.15 for the Semiconductors & Semiconductor Equipment industry and a value on par with the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 2.25 indicates valuation on par with the S&P 500 average of 2.44 and a discount versus the industry average of 3.22. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, SKYWORKS SOLUTIONS INC proves to trade at a discount 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 19.03 Peers 23.15   SWKS 12.34 Peers 22.89

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SWKS is trading at a discount to 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 significant 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 9.44 Peers 24.66   SWKS 0.18 Peers 2.36

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SWKS is trading at a significant discount to 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 2.25 Peers 3.22   SWKS 13.76 Peers -20.93

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

SWKS is trading at a significant discount to its peers.

 

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

SWKS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SWKS 2.67 Peers 3.49   SWKS 11.35 Peers 3.23

Discount. 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 discount to its industry on this measurement.

 

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

SWKS has a sales growth rate that significantly exceeds its peers.

 

 

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