Should i buy skywork solutions
8/4/2024 02:31am
**Skyworks Solutions appears to be a solid investment option**, based on the following analysis:
1. **Financial Performance**: Skyworks Solutions has reported a net income of $120.9 million and a diluted EPS of $0.75. This indicates a strong profitability level.
|Ticker|Name|Total Revenue|Net Income|Diluted EPS|Date|code|market_code|
|---|---|---|---|---|---|---|---|
|SWKS.O|Skyworks Solutions|9.055E8|1.209E8|0.75|2024 Q3|SWKS|185|
2. **Growth Rates**: The company has experienced a net income growth rate of -38.25% and a revenue growth rate of -15.47%. While the revenue growth is negative, the net income growth is even more significant, which could be a concern.
|Ticker|Name|Net Income year-on-year growth rate|Total Revenue year-on-year growth rate|Diluted EPS QoQ growth rate|Date|code|market_code|
|---|---|---|---|---|---|---|---|
|SWKS.O|Skyworks Solutions|-38.253319713993875|-15.468633308439134|-34.210526315789465|20240930|SWKS|185|
3. **Valuation Metrics**: The Price-to-Earnings (P/E) ratio is 21.43, the Price-to-Sales (P/S) ratio is 3.98, and the Price-to-Book (P/B) ratio is 2.64. These ratios are within industry norms and suggest that the stock is trading at a reasonable valuation.
|Ticker|Name|Price to Book Ratio|P/S|P/E(TTM)|Date|code|market_code|
|---|---|---|---|---|---|---|---|
|SWKS.O|Skyworks Solutions|2.639085923189824|3.977712665009515|21.430608|20240802|SWKS|185|
4. **Analyst Ratings and Price Targets**: The stock has a consensus rating of "Neutral" from analysts, with an average price target of $103.13. This suggests that analysts believe the stock has potential for growth but also indicates a lack of strong buy recommendations.
5. **Market Sentiment**: Despite a recent dividend announcement, the stock price has fallen, which could be a sign of market concerns about future growth.
6. **Industry Trends**: Skyworks Solutions operates in the semiconductor industry, which is known for its cyclical nature. The company's products are used in wireless handsets and other devices, which are sensitive to economic fluctuations.
In conclusion, Skyworks Solutions shows strong financial performance and is trading at a reasonable valuation. However, the negative revenue growth rate and the significant decline in net income growth rate could be a concern. Investors should consider their investment horizon and risk tolerance before investing in this stock.