Skyworks Solutions (SWKS) AI Stock Analysis

• Market Cap: $8.20B
• Dividend Yield: 5.65%
• Average Volume (3M): 3.88M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.43
• Revenue Growth: -12.91%
• EPS Growth: -42.12%
• Country: US
• Employees: 10,100
• Sector: Technology
• Sector Strength: 40
• Industry: Semiconductors
• EPS (TTM): 3.26
• Shares Outstanding: 153,574,830
• 10 Day Avg. Volume: 3,594,674
• 30 Day Avg. Volume: 3,884,958
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.67
• Price to Cash Flow (P/CF): 7.20
• P/FCF Ratio: 7.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $69.40
• Price Target Upside: 15.15% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 20

Skyworks Solutions boasts strong financial stability with robust profitability margins and low leverage risk. However, challenges in revenue growth and declining content with a major customer are concerns. The technical analysis suggests cautious near-term outlook due to trading below key moving averages. Despite these challenges, attractive valuation metrics and high dividend yield offer potential value to investors. The new CEO's appointment is a positive strategic move, expected to drive growth and market presence.

Positive Factors

Earnings and Outlook

Despite challenges, Skyworks posted solid December quarter results and an encouraging outlook for its March period, with revenue and EPS slightly ahead of expectations.

Growth Opportunities

Skyworks is seeing better momentum in Edge IoT, with increasing adoption of Wi-Fi 6E and 7 systems and connected car design wins converting to revenue.

Strategic Developments

The Board of Directors authorized a new repurchase agreement up to approximately $2 billion.

Negative Factors

Financial Performance

Skyworks has been experiencing pressure from a softer cyclical smartphone market and has seen revenue contraction since CY22.

Market Share and Revenue Loss

Skyworks is facing a significant loss of market share at Apple due to dual sourcing of a major component for the upcoming iPhone models.

Profitability Challenges

Management noted factory underutilization from the Apple content loss would be a headwind to gross margins.

Skyworks Solutions Business Overview & Revenue Model

Company Description

Skyworks Solutions, Inc. is a prominent American semiconductor company specializing in the design and manufacturing of innovative analog and mixed-signal semiconductors. With a focus on enabling connectivity, Skyworks serves a wide range of markets including smartphones, tablets, wireless infrastructure, automotive, aerospace, and IoT (Internet of Things). The company's products include amplifiers, attenuators, circulators, detectors, diodes, and switches, which are integral to facilitating wireless communication in various applications.

How the Company Makes Money

Skyworks Solutions generates revenue primarily through the sale of its semiconductor products to original equipment manufacturers (OEMs) and other technology companies. The company's key revenue streams include product sales in the mobile communications sector, where its components are used in smartphones and other mobile devices, and the broad markets sector, which encompasses automotive, aerospace, and IoT applications. Skyworks maintains significant partnerships with leading technology firms, leveraging these relationships to expand its market reach and drive sales. Additionally, the company's focus on innovation and the development of cutting-edge solutions in wireless technology contribute to its earnings by enabling it to meet the evolving demands of the industry.

Skyworks Solutions Financial Statement Overview

Summary

Skyworks Solutions demonstrates a solid financial foundation with strong profitability margins and low leverage. While the income statement highlights a challenge in revenue growth, the balance sheet and cash flow statements provide comfort with stability and strong cash generation. The company is well-positioned financially, but addressing revenue growth will be key to enhancing future performance.

Income Statement

Skyworks Solutions' income statement shows a declining revenue trend with the latest TTM revenue at $4.045 billion, down from $4.778 billion in the previous annual period. Despite this, the company maintains a strong gross profit margin of approximately 40.94% and a net profit margin of 13% for the TTM. The EBIT margin stands at 13.88% and EBITDA margin at 22.86%, indicating operational efficiency. However, the recent decline in revenue and profits poses a concern for growth stability.

Balance Sheet

The balance sheet reflects a solid equity position with a stockholders' equity of $6.401 billion, resulting in a strong equity ratio of 76.82% in the latest TTM period. The debt-to-equity ratio is conservative at 0.18, suggesting low leverage risk. Return on equity (ROE) is 8.23%, indicating moderate but stable profitability. Overall, the balance sheet is robust, providing financial stability and low leverage risk.

Cash Flow

Skyworks Solutions shows a strong operating cash flow of $1.427 billion in the TTM, with a healthy free cash flow of $1.235 billion. However, the free cash flow has decreased compared to $1.667 billion in the prior annual period, indicating a negative growth trend. The operating cash flow to net income ratio is high at 2.71, showing efficient cash generation relative to net income. Despite the decrease in free cash flow, the company maintains a strong cash flow position.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.04B	4.18B	4.77B	5.49B	5.11B	3.36B
	Gross Profit
1.66B	1.72B	2.11B	2.60B	2.51B	1.61B
	EBIT
561.40M	637.40M	1.13B	1.53B	1.61B	891.80M
	EBITDA
924.90M	1.12B	1.76B	2.21B	2.05B	1.26B
	Net Income Common Stockholders
526.70M	596.00M	982.80M	1.28B	1.50B	814.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
453.26M	1.56B	734.40M	586.80M	1.03B	980.00M
	Total Assets
1.56B	8.28B	8.43B	8.91B	8.59B	5.11B
	Total Debt
74.74M	1.20B	1.51B	2.71B	2.24B	150.70M
	Net Debt
-378.51M	-168.20M	790.50M	2.14B	1.35B	-829.30M
	Total Liabilities
247.46M	1.95B	2.34B	3.44B	3.29B	942.50M
	Stockholders Equity
1.32B	6.34B	6.08B	5.47B	5.30B	4.16B
Cash Flow		Free Cash Flow
1.23B	1.67B	1.62B	914.90M	1.12B	806.00M
	Operating Cash Flow
1.43B	1.82B	1.86B	1.42B	1.77B	1.20B
	Investing Cash Flow
-324.90M	-355.90M	-224.40M	-378.90M	-3.13B	-581.40M
	Financing Cash Flow
-529.30M	-819.00M	-1.48B	-1.36B	1.68B	-907.70M

Skyworks Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWKS, the sentiment is Negative. The current price of 60.27 is below the 20-day moving average (MA) of 64.27, below the 50-day MA of 68.10, and below the 200-day MA of 89.10, indicating a bearish trend. The MACD of -1.64 indicates Positive momentum. The RSI at 37.84 is Neutral, neither overbought nor oversold. The STOCH value of 18.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SWKS.

Skyworks Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAMT	76 Outperform	$2.85B	25.76	23.12%	2.13%	36.10%	48.15%
MTSI	75 Outperform	$6.68B	138.48	-9.49%	―	26.40%	-234.22%
TER	75 Outperform	$11.72B	21.94	20.29%	0.71%	5.52%	16.59%
SWKS	72 Outperform	$8.20B	16.36	8.34%	5.65%	-12.91%	-42.12%
AMKR	65 Neutral	$3.80B	10.76	8.73%	2.16%	-2.85%	-1.90%
Sector *	57 Neutral	$20.31B	10.03	-14.49%	2.79%	5.15%	-23.76%
QRVO	52 Neutral	$5.27B	179.60	0.77%	―	9.51%	―

Skyworks Solutions Corporate Events

Skyworks Solutions Appoints New Executive VP and CTO

On March 12, 2025, Skyworks Solutions announced the appointment of Reza Kasnavi to the new role of Executive Vice President, Chief Operations and Technology Officer, effective March 15, 2025. This promotion includes an increase in his annual base salary and enhanced cash incentive awards under the company’s Fiscal Year 2025 Executive Incentive Plan, reflecting the company’s focus on achieving target performance metrics for the fiscal year.

Skyworks Solutions Appoints Philip Brace as CEO

On February 4, 2025, Skyworks Solutions, Inc. announced the appointment of Philip G. Brace as the new Chief Executive Officer and President, effective February 17, 2025, succeeding Liam K. Griffin, who will step down on the same date. Concurrently, Christine King, previously Lead Independent Director, was appointed Chairman of the Board. The leadership transition was part of a comprehensive succession process with Brace bringing extensive experience from the semiconductor, server, IoT, and storage industries. His appointment is expected to drive Skyworks’ long-term initiatives and enhance its market presence, particularly in the wireless networking revolution. The announcement also included details of Brace’s compensation package, performance-based incentives, and severance agreements designed to align his interests with the company’s performance goals.