SkyWater Technology (SKYT) AI Stock Analysis

• Market Cap: $746.54M
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 2.26
• Revenue Growth: 0.19%
• EPS Growth: N/A
• Country: US
• Employees: 702
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.24
• Shares Outstanding: 48,508,000
• 10 Day Avg. Volume: 1,994,756
• 30 Day Avg. Volume: 2,293,914
• PEG Ratio: 1.26
• Price to Book (P/B): 11.82
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 94.59
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 3.09
• Enterprise Value/Gross Profit: 13.26
• Enterprise Value/Ebitda: 7.80
• 1Y Price Target: $21.50
• Price Target Upside: 39.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.46
• Revenue Forecast (FY): $417.53M

• Rating: 64 Neutral
• Price Target: $17.00 ▲(10.46% Upside)

SkyWater Technology's overall score is driven by strong earnings call results and attractive valuation, offset by concerns in financial performance due to high leverage and cash flow management issues. Technical analysis suggests mixed signals, with short-term bearish but long-term bullish trends.

Positive Factors

Revenue Growth

Record Q3 revenues indicate strong demand and effective market positioning, suggesting sustained growth potential in key segments.

Quantum Computing Expansion

Growth in quantum computing positions SkyWater as a leader in an emerging market, enhancing long-term competitive advantage.

Successful Acquisition Integration

The successful integration of Fab 25 boosts production capacity and revenue, supporting strategic growth initiatives.

Negative Factors

High Debt Levels

Significant leverage increases financial risk, potentially limiting investment flexibility and impacting long-term financial health.

Cash Flow Challenges

Poor cash flow management may hinder operational flexibility and investment in growth opportunities, affecting future stability.

Profitability Concerns

Ongoing profitability issues suggest challenges in cost management and pricing strategy, potentially impacting long-term viability.

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, which include contract manufacturing agreements with various clients across different industries. The company operates under a foundry model, where it charges customers for the fabrication of their semiconductor designs. Key revenue streams include fees for wafer fabrication, engineering services, and product development support. Additionally, SkyWater has established significant partnerships with government entities and private companies that enhance its capabilities and market reach, contributing to its earnings. The focus on specialized manufacturing processes, including those for defense and high-reliability applications, allows the company to command premium pricing and secure long-term contracts, further bolstering its financial performance.

SkyWater Technology Financial Statement Overview

Summary

SkyWater Technology shows strong revenue growth but struggles with profitability and cash flow management. High debt levels increase financial risk, and while gross profit margins have improved, the company needs to enhance profitability and manage leverage for long-term stability.

Income Statement

SkyWater Technology shows a positive revenue growth trend with a 19.65% increase in the TTM period. However, the company struggles with profitability, as indicated by a negative net profit margin of -5.69% and a low EBIT margin of -1.08%. The gross profit margin has improved to 22.33%, suggesting better cost management. Overall, while revenue growth is strong, profitability remains a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 7.77, indicating significant leverage and potential financial risk. Return on equity is positive at 1.44%, showing some profitability relative to equity. However, the high leverage could pose risks if not managed carefully, despite the positive equity ratio.

Cash Flow

Cash flow analysis shows challenges, with a negative free cash flow growth rate of -114.92% in the TTM period. The operating cash flow to net income ratio is 0.49, indicating limited cash generation relative to net income. The free cash flow to net income ratio is 0.64, suggesting some cash flow support, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	346.59M	342.27M	286.68M	212.94M	162.85M	140.44M
Gross Profit	80.67M	69.63M	59.29M	25.97M	-7.47M	22.69M
EBITDA	137.04M	25.25M	14.14M	-2.68M	-23.28M	9.57M
Net Income	126.01M	-6.79M	-30.76M	-39.59M	-50.70M	-20.62M
Balance Sheet
Total Assets	787.03M	313.77M	316.76M	305.76M	263.60M	263.21M
Cash, Cash Equivalents and Short-Term Investments	30.89M	18.84M	18.38M	30.02M	12.92M	7.44M
Total Debt	209.49M	76.76M	72.86M	103.04M	61.84M	72.60M
Total Liabilities	587.28M	250.28M	256.06M	251.79M	203.67M	264.79M
Stockholders Equity	192.80M	57.61M	53.74M	53.67M	61.13M	-16.00K
Cash Flow
Free Cash Flow	-6.46M	7.20M	-408.00K	-31.75M	-87.66M	6.34M
Operating Cash Flow	5.83M	18.46M	10.08M	-14.30M	-55.68M	96.19M
Investing Cash Flow	-102.37M	-11.21M	-10.49M	-17.45M	-29.82M	-88.18M
Financing Cash Flow	106.75M	-6.79M	-11.23M	48.86M	90.98M	-5.19M

SkyWater Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.39
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 15.39 is below the 20-day moving average (MA) of 16.78, below the 50-day MA of 17.06, and above the 200-day MA of 11.19, indicating a neutral trend. The MACD of -0.63 indicates Positive momentum. The RSI at 46.57 is Neutral, neither overbought nor oversold. The STOCH value of 34.77 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
SKYT	64 Neutral	$746.54M	5.97	101.23%	―	0.19%	―
IMOS	64 Neutral	$976.74M	129.10	0.98%	3.04%	0.96%	-85.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COHU	56 Neutral	$1.07B	―	-8.53%	―	-4.50%	-45.79%
ICHR	49 Neutral	$577.66M	―	-5.94%	―	16.86%	-26.89%
AOSL	48 Neutral	$609.65M	―	-11.17%	―	5.81%	-376.55%
INDI	44 Neutral	$781.89M	―	-34.90%	―	-4.99%	-12.11%

SkyWater Technology Corporate Events

SkyWater Technology Delays Quarterly Report Filing

SkyWater Technology, Inc. has announced a delay in the filing of its Form 10-Q (Quarter Report) for the financial period ending September 28, 2025. The delay is primarily due to the need for additional time to correct immaterial errors in financial statements from previous years, specifically overstatements in Advanced Technology Services revenues. The company has assured stakeholders that the report will be filed within the five-day extension period allowed by the SEC. Financial impacts include adjustments to the accumulated deficit and accounts receivable, with forward-looking statements indicating potential changes in operational results. SkyWater Technology is committed to resolving these issues and maintaining compliance, as indicated by the signature of CFO Steve Manko on the notification.

The most recent analyst rating on (SKYT) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on SkyWater Technology stock, see the SKYT Stock Forecast page.

SkyWater Technology’s Earnings Call: Record Growth Amid Challenges

SkyWater Technology Inc. recently held its earnings call, revealing a strong quarter characterized by record revenues and significant growth in its Quantum computing segment. The integration of Fab 25 has been successful, contributing positively to the company’s performance. However, there are challenges ahead, particularly in the Aerospace and Defense (A&D) sector, with potential additional costs in Q4 posing some risks.

SkyWater Technology Reports Record Q3 2025 Results

SkyWater Technology, Inc., a leading U.S.-based semiconductor foundry, specializes in advanced technology services and manufacturing for quantum computing and other emerging technologies. In its latest earnings report, SkyWater Technology announced record-breaking financial results for the third quarter of 2025, driven by robust growth in quantum computing revenues and the successful integration of its newly acquired Texas operations. The company reported a significant increase in total consolidated revenue, reaching $150.7 million, a 60.7% rise compared to the same quarter last year. This growth was bolstered by the acquisition of Fab 25 in Texas, which contributed $86.6 million in wafer services revenue. The company’s gross profit also saw a substantial increase, with a reported $36.2 million, up from $20.2 million in the previous year. SkyWater’s strategic focus on quantum computing has resulted in the signing of four new customers, contributing to a projected 30% growth in ATS revenues from this sector for the fiscal year. Additionally, the company’s operations in Texas have exceeded expectations, contributing positively to both revenue and profitability. Looking ahead, SkyWater Technology remains optimistic about its growth trajectory, with expectations of continued momentum in quantum computing and advanced packaging initiatives. The company anticipates further revenue growth in the coming quarters, supported by its strategic investments and expanding customer base.