Skyworks is an internet-of-things stock that is actually successful with good stable finances, growing rapidly, and selling at under 20 times. I’ll give you their revenue and earnings and if this kind of growth interests you, you can research it further.
2012 - xxx xxx 421 454
2013 - 425 436 477 505
2014 - 481 587
You can see that growth actually seems to be accelerating.
Here’s earnings, which also seem to be accelerating.
2012 - xx xx 53 55
2013 - 48 54 64 67
2014 - 62 83
Incredible rate of growth.
Here’s running 12 month trailing earnings:
06 2013 $2.10
09 2013 $2.21
12 2013 $2.33
03 2014 $2.47
06 2014 $2.76
With trailing earnings of $2.76 and a stock price of about $52 they are at about 19 times earnings
I copied the format for the layout of earnings from another post. the phrase incredible rate of growth was copied along with the format from the earlier post and doesn’t really belong with SWKS. I just didn’t notice it was still there.
The more I invest, the more committed I am to learning all I can about the company’s leadership and culture–just as I would if I were investing with a partner in a small business down the road. To that end, after I learn about the growth and financials (thanks again Saul), I check glassdoor.com ratings on all my companies and looking for videos of the CEO.
Here’s the glassdoor.com rating on SWKS: http://www.glassdoor.com/Overview/Working-at-Skyworks-Soluti…
91% approval of CEO is great. 3.6% satisfaction ratio isn’t bad. The main page also includes news links on the company. This one happens to include the following tmf article: http://www.fool.com/investing/general/2014/07/24/3-reasons-w…. I don’t know the author and he doesn’t have a CAPS score, so I don’t know how reliable his analysis is, but still some useful info. Sounds like some great opportunity ahead. But I am always a little uncomfortable when Apple is a key customer due to Apple’s ability to squeeze or change suppliers (there was another TMF rec that this happened to a few years ago–only one data point, and SWKS has many other customers, so it shouldn’t be overemphasized, but it always reminds me of the risk).
I also read thru several of the reviews (esp. the 2-4 ratings) to better understand employees’ perspectives of the company–in this case, the common pros: great training and technical expertise and product development; common cons: the leadership focuses too much on earnings and needs some organizational development and more strategy.
Here’s a link to videos on skyworks and with David Aldrich (CEO): https://www.google.com/webhp?sourceid=chrome-instant&ion…
Here’s some background info on Aldrich: https://www.google.com/webhp?sourceid=chrome-instant&ion…
Here’s the CAPS page for SWKS: http://caps.fool.com/Ticker/SWKS.aspx
Here’s the “my scorecard” page summary: http://www.fool.com/quote/nasdaq/skyworks-solutions-inc/swks… (this is a helpful resource I haven’t seen before–many links to company info and articles)
My initial conclusion/hypothesis: SWKS has smart, experienced leadership with great products and a culture of innovation and there is a continued market growth opportunity in IOT.
Denton - thank you for the fantastic research and due diligence.
Saul - I never knew of these guys as a IoT company. I knew that they were pretty tied to Apple and I had a bad experience with a company that was over reliant on Apple in the past so I stayed away from these guys but they may be worth a second look. Thanks for letting us know about them! And out of curoiousity, which MF service recommends them?
Wow, Denton, You accumulated a lot of data and interesting links in a short time! Thanks.
And out of curoiousity, which MF service recommends them?
Jason, Here’s a hint from Denton’s post: