Skyworks solutions steering away from reliance on apple – skyworks solutions, inc. (nasdaq_swks) _ seeking alpha

The financial performance of Skyworks in the past few years have been nothing short of spectacular. Gas vs diesel Between fiscal years 2013 and 2015, Skyworks Solutions (NASDAQ: SWKS) saw its revenue grow by over 80% to $3.26 billion. 76 gas card payment At the same time net income grew 187% to $0.79 billion. Grade 6 electricity quiz During the same period, all margins improved as well. C gastritis im antrum As a result, the share price went from around $20 in 2013 to well over $100 in 2015. Grade 9 static electricity quiz But ever since reaching this high, the stock has underperformed significantly and has even seen $60 per share. O gastronomo Does this mean that the growth story has come to an end? I think not.

Skyworks’ share price is strongly correlated to Apple’s (NASDAQ: AAPL) because of the significant percentage of total revenue it derives from this company. Gas in texas Skyworks doesn’t directly sell its products to Apple, but sells them to Foxconn, which is a major supplier of Apple. Electricity vampires In fiscal years 2015 the total percentage of revenue derived from Foxconn was 44%. Electricity and magnetism ppt Therefore it comes as no surprise that a lot of investors focus on Apple when analyzing this stock. Electricity production in china When Apple’s share price performs well, so does Skyworks’ share price. Electricity dance moms full episode The same is true when Apple’s share price underperforms as we have seen happening since the summer of 2015. Gas appliance manufacturers association Now that Apple’s revenue growth has disappeared and its future growth seems uncertain, investors think the same way about Skyworks. Gas prices going up 2016 It almost seems like investors forget that although Skyworks derives a significant part of its revenue indirectly from Apple, the company is so much more than just a supplier for Apple’s products.

Together with its subsidiaries, the company produces innovative analog semiconductors and focuses on smartphone, automotive, broadband, medical, tablet and wearable markets among others. Electricity generation by source Besides Apple, a few of the key customers include: Cisco (NASDAQ: CSCO), Alphabet (NASDAQ: GOOG), Samsung, Microsoft (NASDAQ: MSFT) and General Electric (NYSE: GE).

Apple may not be a source of significant revenue growth going forward, but it will stay a reliable source of more or less steady income. Gas in oil pressure washer On top of that management has been working hard to make the company’s future less dependent on that of Apple’s. Origin electricity login The percentage of total revenue coming from Foxconn has already been declining. British gas jokes Other areas of growth have emerged for Skyworks as was again made clear in the 10-Q filing for the third quarter:

“The increase in revenue for the nine months ended July 1, 2016, was primarily driven by our success in capturing a higher share of the increasing RF and analog content per device as smartphones continue to displace traditional cellular phones, increased strength in emerging markets due to the adoption of 3G and 4G technologies, the increasing number of applications for the Internet of Things, and our expanding analog product portfolio supporting new vertical markets including automotive, industrial, medical and military, partially offset by the aforementioned decline in end-product demand from a key smartphone customer.”

Skyworks is also expected to profit a lot from 5G when that transition is in full swing. Power vocabulary words But I believe that the IoT market will grow out into the most profitable for Skyworks in the future. Y gasset This market has huge growth potential in the near- and long term. 5 gases that come from car emissions It’s currently expected that the total number of devices connected to the internet will increase to 34 billion by 2020, up from 10 billion in 2015. Gas in back shoulder Nearly $6 trillion is expected to be spend in the IoT market by that time. Power definition physics electricity Companies that have been working on improving their positions in this strong growth market have the opportunity to see significant financial growth in the coming years. Electricity test physics Skyworks is one of these companies since it has been investing heavily multiple areas of this market which can be seen here.

The fourth quarter results were released earlier this month. Electricity in india voltage During this quarter the company generated revenue worth $835.4 million. Gas near me now Although this was a decline of 5.2% yoy, Skyworks still managed to beat expectations by $4.1 million. Gas pump emoji EPS was realized above expectations as well: $1.47 compared to an expected $1.43, although this was still a 3% decline yoy. Gas in oil tank Operating income was $318.4 million, while CFO was realized at $455 million. Npower electricity meter reading At the end of the quarter the company had 0 debt on its balance sheet.

Obviously the yoy decline in both top line and bottom line comes as no surprise to anyone considering Apple’s performance. Electricity per kwh calculator But management seems to have high expectations for the future as was shown in the press release of the fourth quarter results: “As our results and outlook reflect, Skyworks is capitalizing on the strength of both Mobile and Internet of Things ecosystems,” said Liam K. K electric share price forecast Griffin, president and chief executive officer of Skyworks. Power outage houston zip code “Specifically, we are in the midst of a dramatic sea change in the usage case for wireless technologies and the way they are transforming how we live, work and play. Electricity origin As a virtual hub for e-commerce, enterprise to the cloud, social media, gaming and entertainment, mobile devices are rapidly evolving to address the massive demand for data and speed across an increasingly crowded spectrum. Electricity in water Skyworks is resolving this daunting complexity with customized system-level solutions to ultimately improve the user experience with higher levels of efficiency, enhanced streaming capabilities and expanded network coverage. Electricity word search As a result, we are well positioned to continue delivering above-market growth, profitability and shareholder value.”

If we look at Skyworks’ current share valuation, it looks significantly undervalued compared to its peers. Electricity experiments for preschoolers The company generates an operating margin of 33.7% versus its competitors’ average of 19%. Electricity and magnetism review Net margin is even double that of the 14.5% that its competitors generate. Electricity bill nye These high margins are achieved without generating any debt. O goshi Still, Skyworks’ P/E ratio of just 15.4 is notably lower than the industry average of 25.2. Electricity outage houston Because Skyworks still is expected to generate higher income in the future, the forward P/E ratio is currently valued at 11. Gas vs electric stove This undervaluation is the result the uncertainty that Apple’s future seems to bring. Gas news today But as stated earlier: Skyworks is a lot more than just an Apple supplier.

The company is currently positioning itself to capitalize on the growth market of IoT. C gastritis der antrumschleimhaut As a result the performance in share price and financials will start to outperform those of Apple. Static electricity review worksheet As progress becomes more and more obvious on this front, the stock’s valuation will increase significantly. Gas stations in texas Even if Skyworks’ stock price will be valued at a 20% discount (P/E of 20) to the industry average, with current financial results, this would mean a price target of $100 vs a current share price of $78. E85 gas stations colorado Multiple analysts seem to agree that the prospects for this stock’s future are improving. Gas approximation Earlier this month Cowen increased its price target to $80 and Craig Hallum to $90. Mafia 2 gas meter Expect more of these upgrades the coming months.