SkyWater Technology (SKYT) AI Stock Analysis

• Market Cap: $708.67M
• Dividend Yield: N/A
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 7.3
• Beta (1Y): 2.24
• 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: 48,175,816
• 10 Day Avg. Volume: 1,805,555
• 30 Day Avg. Volume: 2,067,134
• PEG Ratio: 1.21
• Price to Book (P/B): 11.35
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 90.84
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $21.60
• Price Target Upside: 15.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $20.00 ▲(6.89% Upside)

SkyWater Technology's overall stock score reflects a mix of strong technical indicators and positive earnings call highlights, counterbalanced by significant financial challenges. The company's undervaluation presents an opportunity, but high leverage and profitability issues remain concerns.

Positive Factors

Quantum Computing Growth

The significant growth in quantum computing revenues positions SkyWater as a leader in an emerging market, enhancing its competitive edge and long-term revenue potential.

Successful Acquisition

The successful integration of Fab 25 boosts production capacity and revenue, strengthening SkyWater's market position and operational capabilities.

Record Q3 Revenues

Achieving record revenues indicates robust demand and effective business strategies, supporting long-term growth and financial stability.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Profitability Challenges

Ongoing profitability issues may hinder reinvestment in the business and affect long-term financial health and shareholder value.

Aerospace and Defense Revenue Decline

Declining A&D revenues could reduce diversification and stability, impacting overall revenue streams and growth potential.

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 faces significant financial challenges, with declining revenue and profitability, high leverage, and mixed cash flow performance. While there are some operational improvements, the company needs to address its high debt levels and improve profitability to enhance its financial health.

Income Statement

SkyWater Technology's income statement reveals challenges in profitability, with negative net profit margins and declining revenue growth in the TTM period. The gross profit margin has improved over the years, indicating some operational efficiency. However, the negative EBIT and net income margins highlight ongoing profitability issues.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, particularly in the TTM period, indicating significant leverage and potential financial risk. The negative return on equity suggests that the company is not generating sufficient returns on its equity base. The equity ratio is low, reflecting a higher reliance on debt financing.

Cash Flow

Cash flow analysis indicates a decrease in free cash flow growth in the TTM period, although the operating cash flow remains positive. The operating cash flow to net income ratio is below 1, suggesting that cash generation is not fully covering net losses. However, the free cash flow to net income ratio is relatively healthy, indicating some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2020	Dec 2019	Dec 2018
Income Statement
Total Revenue	214.18M	342.27M	286.68M	140.44M	136.72M	132.17M
Gross Profit	45.39M	69.63M	59.29M	22.69M	25.35M	31.34M
EBITDA	7.03M	25.25M	14.14M	9.57M	3.23M	28.97M
Net Income	-15.81M	-6.79M	-30.76M	-19.71M	-16.42M	-65.00K
Balance Sheet
Total Assets	334.69M	313.77M	316.76M	263.21M	190.44M	148.27M
Cash, Cash Equivalents and Short-Term Investments	56.37M	18.84M	18.38M	7.44M	4.61M	498.00K
Total Debt	74.60M	76.76M	72.86M	72.60M	47.99M	35.85M
Total Liabilities	282.73M	250.28M	256.06M	264.79M	166.27M	109.67M
Stockholders Equity	45.24M	57.61M	53.74M	-16.00K	24.17M	38.60M
Cash Flow
Free Cash Flow	38.60M	7.20M	-408.00K	6.34M	1.96M	7.04M
Operating Cash Flow	68.62M	18.46M	10.08M	96.19M	10.92M	12.59M
Investing Cash Flow	-31.35M	-11.21M	-10.49M	-88.18M	-7.37M	-4.28M
Financing Cash Flow	-4.42M	-6.79M	-11.23M	-5.19M	552.00K	-7.82M

SkyWater Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.71
• 50DMA: Positive
• 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 18.71 is above the 20-day moving average (MA) of 16.77, above the 50-day MA of 15.45, and above the 200-day MA of 10.70, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 56.54 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	66 Neutral	$708.67M	7.27	101.23%	―	0.19%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IMOS	60 Neutral	$806.79M	164.34	0.66%	3.75%	0.15%	-92.08%
COHU	59 Neutral	$1.06B	-14.47	-8.53%	―	-4.50%	-45.79%
INDI	49 Neutral	$1.04B	―	-34.90%	―	-4.99%	-12.11%
AOSL	48 Neutral	$814.17M	―	-11.17%	―	5.81%	-376.55%
ICHR	45 Neutral	$574.22M	―	-5.94%	―	16.86%	-26.89%

SkyWater Technology Corporate Events

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.

SkyWater Technology’s Optimistic Earnings Call Highlights Growth

SkyWater Technology Inc. recently held its earnings call, revealing a generally optimistic outlook despite some challenges. The company reported strong revenue achievements and strategic advancements, particularly in the quantum computing sector and the successful acquisition of Fab 25. However, it acknowledged challenges in the aerospace and defense sector due to government funding delays and anticipated short-term gross margin compression due to the acquisition. Overall, the positive developments significantly outweigh the negatives.

SkyWater Technology’s Strategic Moves and Q2 2025 Results

SkyWater Technology, Inc., a U.S.-based semiconductor manufacturer, is recognized for its Technology as a Service model, which facilitates the production of innovative technologies across various sectors including aerospace, defense, and quantum computing. In its latest earnings report for the second quarter of 2025, SkyWater Technology announced financial results that met the upper end of their expectations, alongside the completion of its acquisition of Infineon’s U.S. fab, Fab 25, in Austin, Texas. This acquisition is expected to significantly boost the company’s revenue and cash flow starting in the third quarter, with Fab 25 projected to contribute at least $300 million annually.