Skyworks Solutions, Inc. (NASDAQ: SWKS)

Sector: Technology Industry: Semiconductors CIK: 0000004127
P/B 1.80
P/E 21.67
P/S 2.53
Market Cap 10.34 Bn
ROIC (Qtr) 8.43
Div Yield % 5.26
Rev 1y % (Qtr) 7.34
Total Debt (Qtr) 1.17 Bn
Debt/Equity (Qtr) 0.20

About

Stock Price Chart

Analysis

Pros

  • Strong operating cash flow of 1.30B provides robust 1.12x coverage of total debt 1.17B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.16B provide 2.33x coverage of short-term debt 499.40M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 4.93B provides 4.23x coverage of total debt 1.17B, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 1.30B provides 3.50x coverage of SG&A expenses 371.50M, showing efficient operational cost management.
  • Operating cash flow of 1.30B provides exceptional 48x coverage of interest expenses 27.10M, showing strong debt service capability.

Cons

  • Operating cash flow of 1.30B barely covers its investment activities of (234M), with a coverage ratio of -5.56, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.30B provides thin coverage of dividend payments of (432.60M) with a -3.01 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (234M) provide weak support for R&D spending of 785.50M, which is -0.30x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 553.80M show weak coverage of depreciation charges of 463M, with a 1.20 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of 5.66B provide limited buffer against comprehensive income items of (5.10M), which is -1109.20x, indicating elevated exposure to market risks.

Peer Comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,276.26 Bn 43.11 22.85 10.48 Bn
2 AVGO Broadcom Inc. 1,690.87 Bn 89.31 28.22 64.23 Bn
3 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,514.32 Bn 29.36 12.71 31.18 Bn
4 AMD Advanced Micro Devices Inc 343.27 Bn 103.83 10.72 3.87 Bn
5 MU Micron Technology Inc 269.16 Bn 31.52 7.20 15.28 Bn
6 INTC Intel Corp 249.55 Bn 1,260.33 4.67 46.55 Bn
7 QCOM Qualcomm Inc/De 195.62 Bn 35.30 4.42 14.81 Bn
8 TXN Texas Instruments Inc 163.92 Bn 32.50 9.49 14.05 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 1.30 3.95
EV to Cash from Ops. 7.94 -331.60
EV to Debt 8.85 86.14
EV to EBIT 18.65 -55.96
EV to EBITDA 10.72 20.88
EV to Free Cash Flow [EV/FCF] 9.34 -4.09
EV to Market Cap 1.00 0.80
EV to Revenue 2.53 18.79
Price to Book Value [P/B] 1.80 5.23
Price to Earnings [P/E] 21.67 12.47

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 1.10 2.29
Dividend Payout Ratio % 90.90 8.00
Dividend per Basic Share 2.81 0.62
FCF Dividend Payout Ratio % 39.23 10.38
Interest Coverage 20.44 8.19

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -24.20 -155.77
Cash and Equivalents Growth (1y) % -15.15 44.44
Dividend Growth (1y) % 2.55 5.30
EBIAT Growth (1y) % -19.70 34.22
EBITDA Growth (1y) % -11.55 47.50
EBIT Growth (1y) % -16.98 30.14
EBT Growth (1y) % -17.24 47.04
EPS Growth (1y) % -16.94 36.18
FCF Growth (1y) % -33.69 252.76
Gross Profit Growth (1y) % -2.25 43.92

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.52 0.49
Cash Payout Ratio 0.29 0.09
Cash Ratio 0.88 2.23
Current Ratio 2.33 5.43
Debt to Equity Ratio 0.20 0.34
Interest Cover Ratio 20.44 8.19
Times Interest Earned 20.44 8.19

Profitability

Metric Value Industry Percentile
EBITDA Margin % 24.90 -112.44
EBIT Margin % 13.55 -92.10
EBT Margin % 12.89 -132.39
Gross Margin % 41.20 47.63
Net Profit Margin % 11.70 -133.41