Skyworks Solutions Inc
Exchange: NASDAQSector: TechnologyIndustry: Semiconductors
Skyworks Solutions, Inc. is empowering the wireless networking revolution. We are a leading developer, manufacturer and provider of analog and mixed-signal semiconductors and solutions for numerous applications, including aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, smartphone, tablet and wearables. Skyworks is a global company with engineering, marketing, operations, sales and support facilities located throughout Asia, Europe and North America and is a member of the S&P 500® market index.
Did you know?
Free cash flow has been growing at 2.2% annually.
Current Price
$63.65
+3.41%GoodMoat Value
$97.14
52.6% undervaluedProfile
Valuation (TTM)
Market Cap$9.46B
P/E24.00
EV$7.70B
P/B1.64
Shares Out148.68M
P/Sales2.33
Revenue$4.05B
EV/EBITDA9.67
Skyworks Solutions Inc (SWKS) Stock Analysis
GoodMoat Analysis
Skyworks Solutions is a semiconductor company with a potentially durable competitive moat, but its current financial quality is mixed. The stock appears deeply undervalued relative to the GoodMoat target, but this is offset by weak recent performance and quality metrics.
Read full analysis
Skyworks Solutions designs and manufactures semiconductors, primarily for the wireless communications market, including smartphones and infrastructure. Applying the GoodMoat framework, the company likely possesses a moat through criteria such as technology leadership, strategic partnerships with major smartphone OEMs, and supply chain advantages, which would warrant a Moat Score of at least 5. However, its Quality Indicators are concerning. While its Free Cash Flow Yield of 13.2% is strong and its Debt/Equity ratio of 0.20 is low, other metrics are weak: an ROE of 6.8% is far below the 15-20% target, revenue growth is negative at -3.1% YoY, and profit margins are in the single digits. This profile suggests a Quality rating of 'Adequate' at best, not 'High Quality'. The Decision Framework's first gate is therefore a borderline 'PROCEED'. On valuation, the GoodMoat target of $97.14 implies a margin of safety of over 40% from the current $56.19 price, which the framework classifies as 'Deeply Undervalued'. This creates a tension: the business shows a moat and extreme undervaluation but lacks the high-quality financials typically sought. For a value investor, this makes Skyworks a company worth investigating further to understand if the weak metrics are cyclical or structural, and if the moat is durable enough to support a recovery. Analysis based on data as of 2024-05-15.
Market Cap$9.46B
Current Price$63.65
P/E Ratio24.00
Forward P/E—
PEG Ratio-0.51
EPS$3.08
Book Value$38.72
P/B Ratio1.64
SWKS Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 2.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 5M
Revenue
3.4B
FY19
3.4B
FY20
5.1B
FY21
5.5B
FY22
4.8B
FY23
4.2B
FY24
4.1B
FY25
Net Income
854M
FY19
815M
FY20
1.5B
FY21
1.3B
FY22
983M
FY23
596M
FY24
477M
FY25
SWKS 52-Week Range
$52.50
$81.07
50-Day MA: $57.15200-Day MA: $65.42
Did you know?
Free cash flow has been growing at 2.2% annually.
Skyworks Solutions Inc (SWKS) Financial Summary
Skyworks Solutions Inc (SWKS) is a Technology company in the Semiconductors industry, listed on NASDAQ. The stock currently trades at $63.65 with a market capitalization of $9.46B.
Key valuation metrics include a P/E ratio of 24.00, price-to-book ratio of 1.64, and EPS of $3.08. The company reports a profit margin of 9.7% and return on equity of 6.8%.
SWKS Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $9.46B |
| P/E Ratio | 24.00 |
| EPS | $3.08 |
| P/B Ratio | 1.64 |
| P/S Ratio | 2.33 |
| EV/EBITDA | 9.67 |
| Dividend Yield | 4.57% |
| Profit Margin | 9.7% |
| Return on Equity | 6.8% |
| Debt/Equity | 0.20 |
SWKS Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $3.38B | $853.60M |
| FY20 | $3.36B | $814.80M |
| FY21 | $5.11B | $1.50B |
| FY22 | $5.49B | $1.28B |
| FY23 | $4.77B | $982.80M |
| FY24 | $4.18B | $596.00M |
| FY25 | $4.09B | $477.10M |
Skyworks Solutions Inc (SWKS) Valuation
Based on GoodMoat's DCF model, Skyworks Solutions Inc has a fair value estimate of $97.14. At the current price of $63.65, the stock appears 34.5% undervalued relative to our intrinsic value estimate.
SWKS Quality Indicators
Skyworks Solutions Inc maintains a profit margin of 9.7% and an operating margin of 12.2%. Return on equity stands at 6.8%. The current ratio is 2.33. Debt-to-equity ratio is 0.20.
About Skyworks Solutions Inc
Skyworks Solutions, Inc. is empowering the wireless networking revolution. We are a leading developer, manufacturer and provider of analog and mixed-signal semiconductors and solutions for numerous applications, including aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, smartphone, tablet and wearables. Skyworks is a global company with engineering, marketing, operations, sales and support facilities located throughout Asia, Europe and North America and is a member of the S&P 500® market index.
SWKS Free Cash Flow
Skyworks Solutions Inc generated $1.11B in trailing twelve-month free cash flow, representing an FCF yield of 11.68%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
SWKS Shares Outstanding
Skyworks Solutions Inc has 0.15 billion shares outstanding at a share price of $63.65, giving it a market capitalization of $9.46B.