Skyworks Solutions Inc

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SWKS : NASDAQ : Technology
$73.34 | %
Today's Range: 71.65 - 73.445
Avg. Daily Volume: 2786800.0
12/02/16 - 4:00 PM ET

Financial Analysis


SKYWORKS SOLUTIONS INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. SKYWORKS SOLUTIONS INC is extremely liquid. Currently, the Quick Ratio is 7.14 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 12.09% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)835.4880.8
EBITDA ($mil)353.0352.3
EBIT ($mil)291.8298.1
Net Income ($mil)246.8229.2


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1083.81043.6
Total Assets ($mil)3855.43719.4
Total Debt ($mil)0.00.0
Equity ($mil)3541.43159.2


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin57.3154.73
EBITDA Margin42.2539.99
Operating Margin34.9333.84
Sales Turnover0.850.88
Return on Assets25.8121.46
Return on Equity28.125.26
Debt Q4 FY16 Q4 FY15
Current Ratio9.524.13
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)187.5190.3
Div / share0.280.26
EPS1.311.18
Book value / share18.8916.6
Institutional Own % n/a n/a
Avg Daily Volume2839389.02691443.0

Valuation


BUY. SKYWORKS SOLUTIONS INC's P/E ratio indicates a significant discount compared to an average of 30.84 for the Semiconductors & Semiconductor Equipment industry and a significant discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 4.13 indicates a premium versus the S&P 500 average of 2.79 and a discount versus the industry average of 4.21. The current price-to-sales ratio is well above the S&P 500 average, but 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 15.05 Peers 30.84   SWKS 13.34 Peers 17.71

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.

 

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 12.72 Peers 20.16   SWKS NA Peers 3.19

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

Ratio not available.

 

Neutral. 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.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SWKS 4.13 Peers 4.21   SWKS 26.34 Peers 21.82

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 exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SWKS 4.44 Peers 4.50   SWKS 0.93 Peers 10.81

Average. 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 valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SWKS significantly trails its peers on the basis of sales growth

 

 

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