Skyworks Solutions Inc

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SWKS : NASDAQ : Technology
$66.02 | %
Today's Range: 65.50 - 66.70
Avg. Daily Volume: 2,897,800
07/29/16 - 4:00 PM ET

Financial Analysis


SKYWORKS SOLUTIONS INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. SKYWORKS SOLUTIONS INC is extremely liquid. Currently, the Quick Ratio is 4.45 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 15.52% 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 FY16 Q3 FY15
Net Sales ($mil)751.7810.0
EBITDA ($mil)0.0309.6
EBIT ($mil)248.6259.3
Net Income ($mil)185.0207.4


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)973.71106.0
Total Assets ($mil)3955.73518.3
Total Debt ($mil)0.00.0
Equity ($mil)3514.33042.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin49.2453.7
EBITDA Margin0.038.22
Operating Margin33.0732.01
Sales Turnover0.840.88
Return on Assets24.7121.14
Return on Equity27.8124.45
Debt Q3 FY16 Q3 FY15
Current Ratio5.995.7
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)190.2191.0
Div / share0.260.13
EPS0.971.06
Book value / share18.4815.93
Institutional Own % n/a n/a
Avg Daily Volume2830780.03773380.0

Valuation


BUY. SKYWORKS SOLUTIONS INC's P/E ratio indicates a significant discount compared to an average of 35.97 for the Semiconductors & Semiconductor Equipment industry and a significant discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 3.84 indicates a premium versus the S&P 500 average of 2.81 and a discount versus the industry average of 4.20. 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 14.04 Peers 35.97   SWKS NA Peers 26.17

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

SWKS is trading at a significant discount to its peers.

 

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

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SWKS 11.49 Peers 18.96   SWKS 0.42 Peers 2.94

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 3.84 Peers 4.20   SWKS 32.19 Peers -6.14

Average. 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 valuation on par with 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 4.05 Peers 4.88   SWKS 7.70 Peers 4.47

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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