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SkyWater Technology (SKYT)
NASDAQ:SKYT
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SkyWater Technology
(NASDAQ:SKYT)
55Neutral
Positive Factors
Acquisition
SkyWater Technology's acquisition of Fab 25 from Infineon adds capacity and mitigates the risk of having just one front-end fab.
Domestic Demand
As one of the few US semi fab operators, SkyWater Technology will benefit from domestic demand in the long run.
Financial Outlook
The company's CY25 outlook projects a return to profitability driven by growth in Advanced Technology Services and Wafer Services.
Negative Factors
Budget Constraints
Advanced Technology Services core revenue decreased due to aerospace and defense customer budget constraints.
Government Spending
The 1Q25 guide came in a bit soft due to pauses in government spending as the new administration settles in.
Revenue Decline
Wafer Services sales experienced a significant decrease due to prolonged weakness in the automotive and industrial markets.
SkyWater Technology (SKYT) vs. S&P 500 (SPY)
Market Cap
$340.29M
Dividend YieldN/A
Average Volume (3M)682.11K
Price to Earnings (P/E)―
Beta (1Y)2.14
Revenue Growth19.39%
EPS Growth78.56%
CountryUS
Employees702
SectorTechnology
Sector Strength42
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.14
Shares Outstanding47,995,080
10 Day Avg. Volume542,518
30 Day Avg. Volume682,105
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.10
Price to Cash Flow (P/CF)-73.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.67Price Target Upside95.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
SkyWater Technology Business Overview & Revenue Model
Company DescriptionSkyWater Technology (SKYT) is a U.S.-based semiconductor foundry company that specializes in advanced manufacturing services. The company operates in the semiconductor sector, focusing on the design and production of integrated circuits (ICs) and microelectromechanical systems (MEMS). SkyWater provides a range of services including custom design solutions, volume manufacturing, and support for a variety of end markets such as aerospace, defense, medical, and automotive, among others.
How the Company Makes MoneySkyWater Technology generates revenue primarily through its semiconductor manufacturing services. The company operates a pure-play foundry model, offering fabrication services for custom ICs and MEMS, which allows clients to leverage SkyWater’s advanced manufacturing capabilities without owning their production facilities. Key revenue streams include wafer fabrication, engineering services, and technology licensing. SkyWater partners with various organizations, including government agencies and commercial entities, to deliver specialized solutions tailored to specific applications. The company also benefits from strategic collaborations and government contracts, which contribute significantly to its earnings by enhancing its technological capabilities and expanding its service offerings.
SkyWater Technology Financial Statement Overview
Summary
SkyWater Technology exhibits significant revenue growth and improved operational efficiency, but profitability remains elusive with negative net margins and ROE. Cash flow improvements and a stronger balance sheet show progress towards financial stability despite ongoing challenges in achieving positive net income.Income Statement
SkyWater Technology has shown a significant revenue growth from $162.8M in 2022 to $342.3M in 2024, indicating strong market demand. The gross profit margin improved to 20.34% from negative figures in prior years, highlighting enhanced operational efficiency. However, the net profit margin is negative at -1.98%, showing continued challenges in achieving profitability. The EBIT and EBITDA margins have improved, but are still modest at 1.92%.68
Positive
Balance Sheet
The debt-to-equity ratio reduced significantly, indicating improved financial structure and reduced leverage risk. The equity ratio is 18.37%, showing a moderate equity base. However, the return on equity remains negative due to negative net income, suggesting the company is not yet generating returns for shareholders.55
Neutral
Cash Flow
Operating cash flow has improved substantially, reaching $15.2M in 2024, a positive sign for liquidity. Free cash flow turned positive, showing effective capital expenditure management. The operating cash flow to net income ratio is robust, indicating efficient cash conversion despite negative net income.72
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Mar 2023 | Mar 2022 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 345.94M | 342.27M | 286.68M | 212.94M | 162.85M | 140.44M | Gross Profit |
| 63.02M | 69.63M | 59.29M | 25.97M | -7.47M | 22.69M | EBIT |
| -124.00K | 6.56M | -14.79M | -29.77M | -57.10M | -8.64M | EBITDA |
| 14.36M | 6.56M | 14.14M | -2.68M | -23.28M | 9.57M | Net Income Common Stockholders |
| -16.44M | -6.79M | -30.76M | -36.87M | -47.40M | -19.71M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 20.00M | 18.84M | 18.38M | 30.02M | 12.92M | 7.44M | Total Assets |
| 312.28M | 313.77M | 316.76M | 305.76M | 263.60M | 263.21M | Total Debt |
| 81.80M | 5.07M | 72.86M | 92.85M | 59.45M | 72.60M | Net Debt |
| 61.80M | -13.77M | 54.48M | 62.83M | 46.53M | 65.16M | Total Liabilities |
| 252.88M | 95.96M | 256.06M | 251.79M | 203.67M | 264.79M | Stockholders Equity |
| 51.34M | 57.61M | 53.74M | 53.67M | 61.13M | -16.00K |
| Cash Flow | Free Cash Flow | ||||
| 29.62M | 29.00K | -408.00K | -31.24M | -87.66M | 6.34M | Operating Cash Flow |
| 51.48M | 15.24M | 10.08M | -15.86M | -50.97M | 96.19M | Investing Cash Flow |
| -21.72M | -18.48M | -10.49M | -15.38M | -34.54M | -88.18M | Financing Cash Flow |
| -26.34M | 3.70M | -11.23M | 48.86M | 90.98M | -5.19M |
SkyWater Technology Technical Analysis
Negative
7.00
Price Trends
9.01
Negative
9.88
Negative
9.24
Negative
Market Momentum
-0.56
Positive
33.89
Neutral
15.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYT, the sentiment is Negative. The current price of 7 is below the 20-day moving average (MA) of 7.81, below the 50-day MA of 9.01, and below the 200-day MA of 9.24, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 33.89 is Neutral, neither overbought nor oversold. The STOCH value of 15.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKYT.
SkyWater Technology Risk Analysis
SkyWater Technology disclosed 55 risk factors in its most recent earnings report. SkyWater Technology reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SkyWater Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $26.04B | 85.36 | 4.71% | 3.74% | -44.31% | -86.74% | |
67 Neutral | $17.15B | 11.06 | 18.97% | ― | -14.19% | -27.42% | |
65 Neutral | $4.46B | 12.64 | 8.73% | 1.78% | -2.85% | -1.90% | |
64 Neutral | $7.22B | 119.78 | 8.71% | ― | -30.90% | -76.39% | |
64 Neutral | $3.96B | 19.70 | 8.17% | ― | 0.94% | -60.23% | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% | |
55 Neutral | $340.29M | ― | -12.20% | ― | 19.39% | 78.56% |
* Technology Sector Average
Performance Comparison
SKYT
SkyWater Technology
7.15
-2.75
-27.78%
AMKR
Amkor
18.63
-11.85
-38.88%
LSCC
Lattice Semiconductor
51.22
-23.89
-31.81%
MCHP
Microchip
48.93
-37.07
-43.10%
ON
ON Semiconductor
40.76
-29.97
-42.37%
TSEM
Tower
37.34
4.53
13.81%
SkyWater Technology Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -20.81% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance in Q4 2024 and the full year, driven by significant revenue growth and strategic expansions, such as the Fab 25 acquisition. However, challenges persist in the Wafer Services segment and conservative growth forecasts for 2025 due to external factors affecting government contracts.Highlights
Strong Financial Results for Q4 2024
Total revenue topped $75 million with a gross margin of nearly 27%, exceeding expectations. EPS for the quarter was $0.04, contributing to full-year positive earnings of $0.06 per share for fiscal 2024.
Record Full Year Revenue
Full-year revenues totaled a record $342 million, up 19% from fiscal 2023. The ATS business delivered strong 13% revenue growth compared to 2023.
Expansion in Aerospace and Defense
Significant end-market strength in aerospace and defense sectors, with SkyWater establishing a trusted position for domestic semiconductor capabilities.
ThermaView Solutions Launch
SkyWater introduced ThermaView Solutions, marking its entry into the thermal imaging market with support from Raytheon Vision Systems.
Fab 25 Acquisition
Announced acquisition of Infineon’s Fab 25 in Austin, expected to contribute approximately $300 million of annual Wafer Services revenue and enhance SkyWater's U.S. manufacturing capabilities.
Lowlights
Decline in Wafer Services Revenue
Wafer Services business declined significantly due to prolonged weakness in the automotive and industrial segments.
Conservative Revenue Outlook for 2025
SkyWater expects modest year-over-year growth in ATS and Wafer Services, with a conservative view due to ongoing federal budget negotiations.
Q1 2025 Revenue Guidance
Guidance for Q1 2025 is conservative, with expected revenue of $59 million to $63 million, reflecting continuing resolution impacts on ATS revenues.
Company Guidance
During SkyWater Technology's Fourth Quarter 2024 Financial Results Conference Call, the company provided guidance for the upcoming year, highlighting several key metrics. For fiscal year 2025, SkyWater expects combined Advanced Technology Services (ATS) and Wafer Services revenue growth of approximately 5%, plus or minus 2%, compared to $266 million in 2024. The company anticipates tools revenue of around $30 million, primarily in the second half of the year. Gross margin for the combined ATS and Wafer Services business is expected to expand into the 30% range in the second half, resulting in high 20s for the full year. The non-GAAP gross margin for the total revenue, including tools, is projected to be in the 23% to 27% range. SkyWater plans to keep operating expenses for 2025 within a 10% to 15% increase over the previous year. With these forecasts, the company aims to achieve slightly positive non-GAAP EPS and strong adjusted EBITDA of at least 10% of total revenue for the year.SkyWater Technology Corporate Events
Executive/Board Changes
SkyWater Technology Appoints New Board Members
Neutral
Apr 1, 2025
On March 30, 2025, SkyWater Technology, Inc. announced the election of Timothy E. Baxter, Andrew D. C. LaFrence, and Tammy J. Miller to its Board of Directors, effective March 31, 2025. These appointments are set to last until the company’s 2025 Annual Meeting of Stockholders. The new directors are deemed independent under Nasdaq rules and have been appointed to the Audit Committee, with Ms. Miller also joining the Compensation Committee. Their compensation aligns with the company’s Non-Employee Director Compensation Policy and will be pro-rated based on their service duration. The appointments are not influenced by any arrangements or transactions requiring disclosure.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.