Definitive Analysis
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Skyworks Solutions, Inc. (0L77.L)

Company Dividend Discount ModelIndustry: SemiconductorsSector: Technology

Valuation Snapshot

Stable Growth$35.18 - $57.82$45.25
Multi-Stage$45.39 - $49.52$47.42
Blended Fair Value$46.34
Current Price$77.10
Upside-39.90%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS7.10%13.39%2.772.812.592.392.181.961.751.551.371.29
YoY Growth---1.48%8.37%8.60%9.54%10.94%12.08%12.62%13.33%6.77%63.28%
Dividend Yield--3.59%3.11%2.30%2.62%1.40%1.28%1.43%2.31%1.45%1.72%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)477.10
(-) Cash Dividends Paid (M)432.60
(=) Cash Retained (M)44.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)95.4259.6435.78
Cash Retained (M)44.5044.5044.50
(-) Cash Required (M)-95.42-59.64-35.78
(=) Excess Retained (M)-50.92-15.148.72
(/) Shares Outstanding (M)156.40156.40156.40
(=) Excess Retained per Share-0.33-0.100.06
LTM Dividend per Share2.772.772.77
(+) Excess Retained per Share-0.33-0.100.06
(=) Adjusted Dividend2.442.672.82
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.02%3.02%4.02%
Fair Value$35.18$45.25$57.82
Upside / Downside-54.37%-41.31%-25.01%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)477.10491.51506.36521.66537.42553.66570.27
Payout Ratio90.67%90.54%90.40%90.27%90.13%90.00%92.50%
Projected Dividends (M)432.60445.01457.77470.90484.40498.30527.50

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.02%3.02%4.02%
Year 1 PV (M)403.94407.90411.86
Year 2 PV (M)377.18384.61392.11
Year 3 PV (M)352.18362.64373.31
Year 4 PV (M)328.85341.93355.40
Year 5 PV (M)307.06322.41338.36
PV of Terminal Value (M)5,330.535,596.955,873.92
Equity Value (M)7,099.747,416.447,744.95
Shares Outstanding (M)156.40156.40156.40
Fair Value$45.39$47.42$49.52
Upside / Downside-41.12%-38.50%-35.77%

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