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Overview
Company Performs Well In Fundamental Analysis
MarketGrader currently has a BUY rating on Skyworks
Solutions, Inc. (SWKS), based on a final overall grade of
69.4 scored by the company's fundamental analysis.
Skyworks Solutions, Inc. scores at the 96th percentile
among all 5888 North American equities currently
followed by MarketGrader. Our present rating dates to
February 1, 2013, when it was upgraded from a HOLD.
Relative to the Semiconductors sub-industry, which is
comprised of 71 companies, Skyworks Solutions, Inc.'s
grade of 69.4 ranks seventh. The industry grade leader
is Tower Semiconductor Ltd (TSEM) with an overall
grade of 85.0. The stock has performed poorly in the
last six months in relative terms, down 0.17% compared
with the Semiconductors sub-industry, up 18.67% and
the S&P 500 Index, up 5.07%. Please go to pages two
and three of this report for a complete breakdown of
SWKS's fundamental analysis.
Company's Cash Flow Indicators Are Solid Across the Board but
Cash Flow A- Offer Some Room for Improvement
Skyworks Solutions,' cash flow fell considerably during the latest quarter
Cash Flow Growth Fto $140.90 million, a 36.50% decline from the $221.90 million reported
after the same quarter last year. This marks an accelerating decline from
EBIDTA Margin A-
twelve month trailing cash flow, which fell to $873.40 million in the period
Debt/Cash Flow Ratio ended last quarter, 9.07% lower than the $960.50 million in the year
A+
earlier period, underscoring the ongoing deterioration of the company's
Interest Cov. Capacity A+
business. Even though the company's balance sheet remains debt-free,
as was the case a year ago, over that same period its cash on hand fell Cash Flow Qtrly. 06/30/2016 $141M
Economic Value A-
by 11.96%, from $1.11 billion to $973.70 million, something worth
Cash Flow Qtrly Year Ago $222M
watching when it next reports financial results.
Retention Rate A+According to our Economic Value indicator, which measures the Cash Flow 1 Yr. Chg. (36.5%)
Cash Flow 12 Mo. Tr. Latest $873M
company's return to shareholders after accounting for its costs of capital as well as its operating costs, Skyworks
Solutions,'s results were very solid last year. The company had $3.51 billion in total invested capital as of its most Cash Flow 12 Mo. Tr. 3Y Ago $393M
recently reported quarter; this includes only all forms of equity since it carries no debt. And based on its 12-month Cash Flow 12 Mo. Tr. 3Y Chg. 122.49%
trailing operating income the company generated a 32.16% return on that capital over the same period. Its after Free Cash Flow Last Qtr. $84M
tax cost of equity in the last year was 15.18%, which should be seen as the opportunity cost of investing in
Skyworks Solutions,'s shares. After deducting this cost from its return on investment the result is 16.98% in
economic value added, or EVA, the true economic profit generated by the company last year for its shareholders. Economic Value
The company hiked its quarterly common dividend in its latest quarter, reported on March 31, 2016, to 28.00 Total Invested Capital $3.5B
cents a share from 26.00 cents, a 7.69% increase. It has now been paying dividends for at least 38 years and the Return on Inv. Capital 32.16%
stock's current yield is 1.39%. Skyworks Solutions, paid out $198.10 million in common dividends during the 12 Weighted Cost of Equity 15.18%
months ended last quarter, accounting for 22.68% of cash flow and 20.26% of total earnings after taxes. This
Weighted Cost of Debt 0.00%
relatively modest payout is slightly higher than the 17.32% of total earnings is paid out in the 12 months ended a
Total Cost of Capital 15.18%
quarter earlier. Assuming it maintains its generally positive fundamentals, the company has ample flexibility to
Economic Value Added 16.98%
increase its payout by a bigger margin in the future should it wish to do so.
Total Debt 0
Ratios
Price/Earnings (12 mo. trailing) 15.06
Price/Sales 4.28
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