Skyworks Solutions Inc ($SWKS) Possible Buy to $58 Confident Investor Rating: Good

Company name Skyworks Solutions Inc
Stock ticker SWKS
Live stock price [stckqut]SWKS[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $64.74
Target stock price (averages with growth) $88.9
Target stock price (averages with no growth) $65.28
Target stock price (manual assumptions) $59.66

The following company description is from Google Finance: http://www.google.com/finance?q=swks

Skyworks Solutions, Inc. (Skyworks) is a producer of analog semiconductors. The Company offers custom linear products automotive, broadband, cellular infrastructure, energy management, global positioning system (GPS), industrial, medical, military, wireless networking, smartphone and tablet applications. Its portfolio consists of amplifiers, attenuators, battery chargers, circulators, demodulators, detectors, diodes, directional couplers, front-end modules, hybrids, infrastructure RF subsystems, isolators, light emitting diode (LED) drivers, mixers, modulators, optocouplers, optoisolators, phase shifters, phase locked loops (PLLs)/synthesizers/VCOs, power dividers/combiners, power management devices, receivers, switches, voltage regulators and technical ceramics. Its customers include Cisco, Ericsson, Foxconn, Fujitsu, General Electric, Google, Honeywell, LG Electronics, Nest, Netgear, Nokia, Northrop Grumman, Rockwell Collins, Samsung, Sensus and ZTE.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Skyworks Solutions Inc.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Skyworks Solutions Inc calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $41.79

Growth: 0.18

Current EPS (TTM): $1.68

P/E: 25

Future EPS Calc: $3.84

Future Stock Price Calc: $96.08

Target stock price: $59.66

I hope that this makes you a better investor. [/s2If]

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