Skyworks Solutions (SWKS) AI Stock Analysis

• Market Cap: $9.54B
• Dividend Yield: 4.52%
• Average Volume (3M): 4.18M
• Price to Earnings (P/E): 19.0
• Beta (1Y): 1.45
• Revenue Growth: -12.91%
• EPS Growth: -42.12%
• Country: US
• Employees: 10,100
• Sector: Technology
• Sector Strength: 63
• Industry: Semiconductors
• EPS (TTM): 3.26
• Shares Outstanding: 153,574,830
• 10 Day Avg. Volume: 3,508,692
• 30 Day Avg. Volume: 4,181,804
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.14
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $67.88
• Price Target Upside: 10.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 21

Skyworks Solutions shows a solid financial foundation with strong profitability margins and low leverage, but faces challenges with revenue growth. Technical indicators suggest a bearish trend, but the valuation remains reasonable with a solid dividend yield. The earnings call reflects mixed sentiment, with growth in some segments countered by challenges with a major customer and inventory issues. The overall score reflects the need to address revenue growth and technical weaknesses while valuing the company's financial stability and strategic leadership changes.

Positive Factors

Guidance and Financial Performance

Skyworks reported solid December quarter results and an encouraging outlook for the March period, with revenue and EPS slightly ahead of expectations.

Market Expansion

The company 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.

Share Buyback

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

Negative Factors

Earnings Growth

The persistent lack of positive earnings growth has led to the reiteration of a Hold rating on the stock.

Market Share 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.

Revenue Loss

Skyworks loses key iPhone 17 socket, with some small wins to mitigate some of the downside.

Skyworks Solutions Business Overview & Revenue Model

Company Description

Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and rest of Asia-Pacific. Its product portfolio includes amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, circulators/isolators, DC/DC converters, demodulators, detectors, diodes, wireless analog system on chip products, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, receivers, switches, synthesizers, timing devices, technical ceramics, voltage controlled oscillators/synthesizers, and voltage regulators. The company provides its products for use in the aerospace, automotive, broadband, cellular infrastructure, connected home, entertainment and gaming, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. The company was incorporated in 1962 and is headquartered in Irvine, California.

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

Skyworks Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 61.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWKS, the sentiment is Neutral. The current price of 61.6 is above the 20-day moving average (MA) of 57.96, below the 50-day MA of 63.72, and below the 200-day MA of 86.12, indicating a neutral trend. The MACD of -1.06 indicates Negative momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 92.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SWKS.

Skyworks Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TER	75 Outperform	$12.36B	23.13	21.55%	0.62%	5.52%	16.59%
CAMT	74 Outperform	$3.03B	27.39	23.12%	2.00%	36.10%	48.15%
MTSI	71 Outperform	$7.74B	138.48	-9.49%	―	26.40%	-234.22%
SWKS	69 Neutral	$9.54B	19.03	8.34%	4.52%	-12.91%	-42.12%
AMKR	67 Neutral	$4.32B	12.24	7.76%	1.84%	-2.85%	-1.90%
Sector *	59 Neutral	$10.71B	10.35	-6.77%	3.02%	7.32%	-11.27%
QRVO	52 Neutral	$5.96B	225.52	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.