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Skyworks: Quantitative Standout
02/13/2014 8:00 am EST
"The Internet of Things" has become a popular catch phrase to describe the interconnectedness of devices using sensors and actuators that are embedded in physical objects, such as cars, smartphones, computers, home appliances, clothing, you name it, explains Chuck Carlson, editor of DRIP Investor.
One firm that plans to have a major stake in this growth is Skyworks Solutions (SWKS). The company manufactures analog semiconductors that're essential to expanding the Internet of Things.
These products are embedded in products in a variety of industries, from wireless communications and automotive, to medical and energy. The company is perhaps best known for being a supplier to Apple's iPhone smart phones.
The stock popped recently on the company's impressive December quarter. Revenues advanced 11% in the quarter to $505 million. Per share profits of $0.67 were up nearly 22% over the year-earlier quarter.
The company looks for its momentum to continue in 2014. For fiscal 2014 ending in September, the firm should post per-share profits of at least $2.60, representing an 18% increase over fiscal 2013 results.
Financially, the firm is rock solid. The company finished 2013 with nearly $649 million in cash and virtually no debt. The strong finances and earnings growth should fund additional stock buybacks—the firm repurchased 670,000 shares during the December quarter.
Skyworks does not currently pay a dividend, but management said on the latest earnings call that a dividend “is a possibility in the future, no question.”
The stock sports some of the strongest Quadrix numbers among the some 4,700 stocks we currently score in our Quadrix universe.
The Overall score is 100 with Value and Momentum scores of 80 and 97. Skyworks also scores well relative to its peers, with its two sector-specific scores coming in at 94 and 100 (all scores are out of a possible 100).
Please note that Skyworks offers a direct-purchase plan, whereby any investor may buy the first share, and every share, directly. Minimum initial investment is $1,000.
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