10Y annualized return is
negative
at -3.9% per year
SWKS has met or exceeded earnings expectations in
the majority of
recent quarters (8/10)
Attractive Price-to-Earnings Ratio
Reasonable Price-to-Sales Ratio
Strong Gross Profit Margin
Impressive Net Profit Margin
Strong Liquidity Ratios
Low Debt Levels
💪 Strong Financial Performance
📈 Diverse Market Presence
🔧 Strong R&D and Innovation
🚀 Multi-Year Growth Potential
🔄 Strategic Diversification
High EV/EBITDA Ratio
Moderate Return on Equity
High Dividend Payout Ratio
⚠️ Loss of Market Share
😟 Inventory Challenges
📉 Uncertain Revenue Trends
🔍 Competitive Landscape
Skyworks Solutions demonstrates a solid business model with strong financial performance and diverse market presence. However, challenges such as market share loss and inventory issues could impact future growth. The company's commitment to innovation and diversification presents opportunities, but competitive pressures remain a concern.
Analysis Date: February 5, 2025
Last Updated: April 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Skyworks Solutions, Inc. is a company that makes tiny electronic parts called semiconductors. These parts help devices like smartphones, tablets, and cars communicate and work better. They create products like amplifiers and antennas, which are essential for wireless connections. Skyworks sells its products to various industries, including technology, automotive, and healthcare, helping to power many everyday devices we rely on.
Streams of revenue
Estimations for reference only
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
NEW YORK, NY / ACCESS Newswire / April 22, 2025 / If you suffered a loss on your Skyworks Solutions, Inc. (NASDAQ:SWKS) investment and want to learn a...
NEW YORK, NY / ACCESS Newswire / April 22, 2025 / If you suffered a loss on your Skyworks Solutions, Inc. (NASDAQ:SWKS) investment and want to learn a...
NEW YORK CITY, NY / ACCESS Newswire / April 22, 2025 / WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Sky...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$126.42
Current Market Price: $50.53
IV/P Ratio: 2.50x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
60.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for SWKS
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (16.07)
P/B ratio ≤ 1.5 (1.32)
Current ratio ≥ 2.0 (5.94x)
Long-term debt < Net current assets (0.41x)
Margin of safety (60.0%)
SWKS meets all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
8.28%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
40.94%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
13.02%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
With a gross profit margin of 40.94%, SWKS demonstrates effective cost management and a strong ability to generate profit from sales.
A net profit margin of 13.02% indicates that SWKS is effectively converting revenue into profit, showcasing strong earnings quality.
The return on equity of 8.28% suggests that while the company is generating profit, there may be room for improvement in utilizing shareholder equity more effectively.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.18x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q1 2025
Current Ratio
Current assets divided by current liabilities
5.94x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q1 2025
A current ratio of 5.94 and a quick ratio of 4.73 indicate that SWKS is in a strong position to cover short-term liabilities with its current assets.
With a debt-to-equity ratio of 0.18 and a debt-to-assets ratio of 0.14, SWKS maintains low leverage, indicating a strong balance sheet.
A dividend payout ratio of 84.05% suggests that a large portion of earnings is returned to shareholders, which could limit reinvestment for growth.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Skyworks reported solid revenue of $1.068 billion and earnings per share of $1.60, indicating strong financial health. The company generated free cash flow of $338 million, showcasing effective cash management.
Skyworks has a diversified business model, with mobile revenue constituting 67% of total revenue and growth in Broad Markets. The company is also positioned well in multiple growth areas such as automotive electrification and edge IoT.
The company continues to invest in technology and product roadmaps, indicating a commitment to innovation. This is crucial for maintaining competitive advantages in RF solutions.
Skyworks is experiencing a decline in content share with its largest customer, transitioning from single sourcing to dual sourcing, which is expected to impact revenue negatively.
The industrial segment remains a headwind due to persistent inventory challenges, which affects overall demand and growth potential in that area.
The company anticipates growth opportunities from trends such as generative AI in smartphones and Wi-Fi 6e and 7 systems, indicating a positive outlook for the future.
Skyworks is committed to diversifying its customer base and product offerings beyond its primary customer, which may mitigate risks associated with dependency on a single client.
The expected decline in mobile business and inventory headwinds in industrial and infrastructure markets present challenges for short-term growth, with guidance suggesting a decline in revenue for Q2.
Intensifying competition, especially from competitors improving performance, may hinder Skyworks' ability to regain lost market share in the highly competitive RF solutions market.