GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Skyworks Solutions Inc (NAS:SWKS) » Definitions » Owner Earnings per Share (TTM)

Skyworks Solutions (Skyworks Solutions) Owner Earnings per Share (TTM) : 7.19 (As of Mar. 2024)


View and export this data going back to 1984. Start your Free Trial

What is Skyworks Solutions Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Skyworks Solutions's Owner Earnings per Share (TTM) ended in Mar. 2024 was $7.19. It's Price-to-Owner-Earnings ratio for today is 15.62.


The historical rank and industry rank for Skyworks Solutions's Owner Earnings per Share (TTM) or its related term are showing as below:

SWKS' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 10.61   Med: 17.8   Max: 40.14
Current: 15.62


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Skyworks Solutions was 40.14. The lowest was 10.61. And the median was 17.80.


SWKS's Price-to-Owner-Earnings is ranked better than
69.62% of 418 companies
in the Semiconductors industry
Industry Median: 29.215 vs SWKS: 15.62

Skyworks Solutions's Earnings per Share (Diluted) for the three months ended in Mar. 2024 was $1.14. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2024 was $5.32. It's PE Ratio ratio for today is 21.11.

Skyworks Solutions's EPS without NRI for the three months ended in Mar. 2024 was $1.14. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2024 was $7.04. It's PE Ratio without NRI ratio for today is 15.96.


Skyworks Solutions Owner Earnings per Share (TTM) Historical Data

The historical data trend for Skyworks Solutions's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Skyworks Solutions Owner Earnings per Share (TTM) Chart

Skyworks Solutions Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.54 4.36 7.11 4.97 7.68

Skyworks Solutions Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Owner Earnings per Share (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.29 7.09 7.68 7.72 7.19

Competitive Comparison of Skyworks Solutions's Owner Earnings per Share (TTM)

For the Semiconductors subindustry, Skyworks Solutions's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Skyworks Solutions's Price-to-Owner-Earnings Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Skyworks Solutions's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Skyworks Solutions's Price-to-Owner-Earnings falls into.



Skyworks Solutions Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Skyworks Solutions's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 855
Depreciation, Depletion and Amortization 516
Change In Deferred Tax -97
5Y Average of Maintenance Capital Expenditure 333
Change In Working Capital 220
Shares Outstanding (Diluted Average) 161

1. Start with "Net Income" from income statement. Skyworks Solutions's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was $855 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Skyworks Solutions's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Mar. 2024 was $516 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Skyworks Solutions's Change In Deferred Tax for the trailing twelve months (TTM) ended in Mar. 2024 was $-97 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $333 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Skyworks Solutions's 5-Year Average Maintenance Capital Expenditure = $333 Mil

5. "Change In Working Capital" is from cashflow statement. Skyworks Solutions's Change In Working Capital for the trailing twelve months (TTM) ended in Mar. 2024 was $220 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Skyworks Solutions's Shares Outstanding (Diluted Average) for the months ended in Mar. 2024 was 161.400 Mil.

Skyworks Solutions's Onwer Earnings Per Share for Mar. 2024 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 855.2 +515.5+-97.3
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-332.89952267726+219.7)/161.400
=7.19

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=112.33/7.19
=15.62

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Skyworks Solutions Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Skyworks Solutions's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Skyworks Solutions (Skyworks Solutions) Business Description

Address
5260 California Avenue, Irvine, CA, USA, 92617
Skyworks Solutions produces semiconductors for wireless handsets and other devices that are used to enable wireless connectivity. Its main products include power amplifiers, filters, switches, and integrated front-end modules that support wireless transmissions. Skyworks' customers are mostly large smartphone manufacturers, but the firm also has a growing presence in nonhandset applications such as wireless routers, medical devices, and automobiles.
Executives
Karilee A Durham officer: SVP, Human Resources 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Reza Kasnavi officer: SVP, Tech. & Manufacturing 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Robert John Terry officer: VP, General Counsel &Secretary 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Kris Sennesael officer: SVP & Chief Financial Officer 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Kevin L Beebe director ONE ALLIED DRIVE, LITTLE ROCK AR 72202
Liam Griffin officer: VP, Sales and Marketing 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Philip Matthew Carter officer: VP, Corp. Controller 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Maryann Turcke director C/O NORTHERN STAR INVESTMENT CORP. II, 405 LEXINGTON AVENUE, NEW YORK NY 10174
Suzanne E. Mcbride director C/O IRIDIUM COMMUNICATIONS INC., 1750 TYSONS BOULEVARD, SUITE 1400, MCLEAN VA 22102
Eric Guerin director 1950 HASSELL ROAD, HOFFMAN ESTATES IL 60169
Carlos S Bori officer: VP, Sales & Marketing 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Timothy R Furey director 5260 CALIFORNIA AVENUE, IRVINE CA 92617
P Mcglade David director 5260 CALIFORNIA AVENUE, IRVINE CA 92617
David J Aldrich director, officer: President and CEO 20 SYLVAN ROAD, WOBURN MA 01801
Christine King director AMIS HOLDINGS, INC., 2300 BUCKSKIN RD, POCATELLO ID 83201