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Why Fundamental Investors Might Love Skyworks Solutions, Inc. (NASDAQ:SWKS)

Simply Wall St

Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Skyworks Solutions, Inc. (NASDAQ:SWKS) due to its excellent fundamentals in more than one area. SWKS is a company with great financial health as well as a an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Skyworks Solutions here.

Flawless balance sheet with proven track record

SWKS has a strong track record of performance. In the previous year, SWKS delivered an impressive double-digit return of 23%. Unsurprisingly, SWKS surpassed the Semiconductor industry return of 12%, which gives us more confidence of the company's capacity to drive earnings going forward. SWKS's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that SWKS has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. SWKS currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is rather impressive for a US$13b market cap company. SWKS has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

NasdaqGS:SWKS Income Statement, August 19th 2019

Next Steps:

For Skyworks Solutions, I've compiled three essential aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for SWKS’s future growth? Take a look at our free research report of analyst consensus for SWKS’s outlook.
  2. Valuation: What is SWKS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SWKS is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SWKS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.