SkyWater Technology (SKYT) AI Stock Analysis

• Market Cap: $568.96M
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.29
• Revenue Growth: -10.53%
• EPS Growth: 36.86%
• Country: US
• Employees: 702
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): -0.11
• Shares Outstanding: 48,175,816
• 10 Day Avg. Volume: 1,856,258
• 30 Day Avg. Volume: 1,010,946
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 7.85
• Enterprise Value/Ebitda: 40.59
• 1Y Price Target: $14.00
• Price Target Upside: 22.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: $13.00 ▲(13.94% Upside)

SkyWater Technology's overall stock score is driven by strong earnings call insights and positive technical indicators, which are offset by significant financial challenges and valuation concerns. The company's strategic advancements and growth prospects in quantum computing and the Fab 25 acquisition provide optimism, but high leverage and profitability issues remain critical risks.

Positive Factors

Financial Performance

The company's gross margin for the March quarter exceeded prior guidance, aided by a warranty reversal, and is expected to improve further as sales volumes increase.

Wafer Services Growth

New products drove 50% of wafer service revenue in the March '25 Q and are expected to represent upwards of 60% of CY25 WS revenue.

Negative Factors

Contract Timing Uncertainty

Limited visibility towards the timing of government ATS contracts.

Government Spending Delays

Federal budget negotiations have delayed R&D program funding, deferring the anticipated 2Q25 recovery in ATS to C2H25.

SkyWater Technology Business Overview & Revenue Model

Company Description

SkyWater Technology, Inc., together with its subsidiaries, provides semiconductor development and manufacturing services. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, power discrete, microelectromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive and transportation, bio-health, consumer, and industrial/internet of things industries. The company was incorporated in 2017 and is headquartered in Bloomington, Minnesota.

How the Company Makes Money

SkyWater Technology generates revenue primarily through its semiconductor manufacturing services. The company operates as a foundry, offering custom fabrication services for integrated circuits and other microelectronics. Its revenue streams include fabrication services, design services, and non-recurring engineering (NRE) fees associated with custom projects. SkyWater's business model involves partnering with customers to co-develop semiconductor solutions tailored to specific applications, which allows the company to secure long-term contracts and partnerships. Additionally, SkyWater benefits from collaborations with government entities and private sector clients who require secure and reliable semiconductor manufacturing capabilities. The company's strategic focus on niche markets and advanced technology nodes helps it differentiate from larger, commodity-driven semiconductor foundries, providing a competitive edge in the industry.

SkyWater Technology Financial Statement Overview

Summary

SkyWater Technology is experiencing gradual financial recovery, evidenced by improving operational margins and cash flow. However, the company continues to face profitability challenges, as reflected in its net losses and low return on equity. The reduction in debt levels is a positive sign of financial stabilization.

Income Statement

SkyWater Technology's revenue has shown a fluctuating growth pattern, with a notable increase in 2023, but a decline in TTM (Trailing-Twelve-Months). Gross profit margins are improving, but net profit margins remain negative due to consistent net losses. The EBIT margin has improved from negative to positive territory in TTM, indicating operational improvements.

Balance Sheet

The company's debt-to-equity ratio has decreased, reflecting reduced leverage. However, equity growth remains slow, and the equity ratio is relatively low. The return on equity remains negative, highlighting ongoing profitability challenges. The recent improvements in reducing debt are promising for financial stability.

Cash Flow

SkyWater Technology has shown strong improvement in operating cash flow, with a significant increase in free cash flow. The operating cash flow to net income ratio has improved, indicating better cash earnings. However, the free cash flow to net income remains constrained by persistent net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	289.66M	342.27M	286.68M	212.94M	162.85M	140.44M
Gross Profit	64.69M	69.63M	59.29M	25.97M	-7.47M	22.69M
EBITDA	12.51M	25.25M	14.14M	-2.68M	-23.28M	9.57M
Net Income	-16.49M	-6.79M	-30.76M	-36.87M	-47.40M	-19.71M
Balance Sheet
Total Assets	581.96M	313.77M	316.76M	305.76M	263.60M	263.21M
Cash, Cash Equivalents and Short-Term Investments	56.37M	18.84M	18.38M	30.02M	12.92M	7.44M
Total Debt	351.46M	76.76M	72.86M	92.85M	59.45M	72.60M
Total Liabilities	351.46M	250.28M	256.06M	251.79M	203.67M	264.79M
Stockholders Equity	45.24M	57.61M	53.74M	53.67M	61.13M	-16.00K
Cash Flow
Free Cash Flow	43.28M	7.20M	-408.00K	-31.24M	-87.66M	6.34M
Operating Cash Flow	67.34M	18.46M	10.08M	-15.86M	-50.97M	96.19M
Investing Cash Flow	-26.76M	-11.21M	-10.49M	-15.38M	-34.54M	-88.18M
Financing Cash Flow	-9.57M	-6.79M	-11.23M	48.86M	90.98M	-5.19M

SkyWater Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYT, the sentiment is Positive. The current price of 11.41 is above the 20-day moving average (MA) of 10.77, above the 50-day MA of 10.11, and above the 200-day MA of 9.48, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 54.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKYT.

SkyWater Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	¥242.18B	15.61	6.62%	2.44%	9.08%	2.46%
NVEC	67 Neutral	$306.43M	21.08	23.09%	6.31%	-9.22%	-13.57%
LASR	61 Neutral	$1.31B	―	-20.63%	―	9.79%	10.28%
SKYT	58 Neutral	$568.96M	―	-34.11%	―	-10.53%	36.86%
INDI	56 Neutral	$1.01B	―	-36.20%	―	-7.49%	-64.33%
NVTS	55 Neutral	$1.55B	―	-32.05%	―	-25.65%	-130.95%
WOLF	40 Underperform	$202.31M	―	-180.49%	―	-9.62%	-30.36%

SkyWater Technology Corporate Events

SkyWater Technology Completes Acquisition of Spansion Fab 25

On June 30, 2025, SkyWater Technology, Inc. amended its Membership Interest Purchase Agreement with Spansion LLC, increasing the purchase price by $18 million and eliminating a $25 million payment tied to a supply agreement. This amendment was part of SkyWater’s acquisition of Spansion Fab 25, LLC, which involved acquiring assets related to Infineon Technologies AG’s fab in Austin, Texas. Additionally, SkyWater entered into an Amended and Restated Loan and Security Agreement with several lenders, establishing a $350 million revolving line of credit. This agreement aims to refinance existing debts, fund the acquisition, and support working capital and equipment needs. The transaction was completed on June 30, 2025, with a total purchase price of approximately $93 million paid in cash.

The most recent analyst rating on (SKYT) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on SkyWater Technology stock, see the SKYT Stock Forecast page.

SkyWater Technology Elects Directors at Annual Meeting

SkyWater Technology, Inc. held its annual meeting of stockholders on May 21, 2025, where stockholders elected nine directors to serve until the 2026 annual meeting. Additionally, the appointment of KPMG LLP as the independent registered public accounting firm for fiscal 2025 was ratified. These decisions are expected to impact the company’s governance and financial oversight, potentially influencing its strategic direction and stakeholder confidence.

The most recent analyst rating on (SKYT) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on SkyWater Technology stock, see the SKYT Stock Forecast page.