Skyworks Solutions (SWKS)
Technology · NASDAQ · US
Fundamentals
Valuation and ratings
Skyworks Solutions trades at $57.63, which is 33% above the $38.34 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 43 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 25.2 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Skyworks Solutions
Skyworks Solutions, Inc., together with its subsidiaries, develops, manufactures, and markets analog and mixed-signal semiconductor products and solutions in the United States, Taiwan, China, South Korea, Europe, the Middle East, Africa, and the Asia Pacific. The company offers amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, wireless ASoC, DC/DC converters, demodulators, detectors, digital power isolators, diodes, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, and optocouplers/optoisolators. It also provides phase locked loops, phase shifters, power dividers/combiners, power over ethernet, power isolators, ProSLIC family of subscriber line interface circuits, receivers, system in package, switches, synthesizers, timing devices, voltage-controlled oscillators/synthesizers, and voltage regulators. The company sells its products through direct sales force, electronic component distributors, and independent sales representatives. Its products are used in aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, smartphone, tablet, and wearables applications. The company was founded in 1962 and is headquartered in Irvine, California.
SWKS passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
10 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Richard Pzena, PZENA INVESTMENT MANAGEMENT LLC$862.59M · 2.8% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$185.98M · 0.1% of book
- Capital Research Global, Capital Research Global Investors$108.28M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$93.31M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$39.34M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Skyworks Solutions (SWKS) undervalued?
Against our discounted cash flow estimate of $38.34, SWKS at $57.63 is 33% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own SWKS?
10 of the institutions we track reported a position in SWKS in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is SWKS's P/E ratio?
SWKS trades at 25.2 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for SWKS, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.