Skyworks Solutions (SWKS)
Information Technology · $13.6B market cap · SEC CIK 0000004127
fundamentals score out of 100
No earnings date is scheduled in the next few months.
The case for SWKS
- Generated $1.1B of free cash flow in FY2025, 27% of revenue.
- Holds more cash ($1.6B) than long-term debt ($497M).
- Free cash flow of 8.1% of its market value a year: a lot of cash for the price.
- Pays a 2.9% dividend while you wait.
- Current assets cover the near-term bills 3.1 times over.
- Within 3% of its 52-week high: the trend is up.
The case against
- Earnings per share down 23.0%.
- Pricey at 46.8× earnings, against a long-run market average nearer 20×.
- Return on equity of only 5%.
- Revenue was flat on the year (+0.1%).
- Dividend takes 147% of earnings, leaving little cushion.
- Swings harder than the market (beta 1.54).
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 64 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 19 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 30 |
| Momentumhow the price has behaved lately | 81 |
| Stabilityhow violently it moves, what it owes and what it pays you | 71 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 46.8× |
|---|---|
| Price / book | 1.64× |
| Price / sales | 3.4× |
| Revenue growth (YoY) | +0.1% |
| EPS growth (YoY) | -23.0% |
| Gross margin | 41% |
| Operating margin | 8% |
| Net margin | 7% |
| Return on equity | 5% |
| Debt / equity | 0.09× |
| Current ratio | 3.10 |
| Dividend yield | 2.87% |
| Beta | 1.54 |
| 52-week range | $51.93 – $92.30 |
| Position in that range | 94% of the way up |
| 3-month return | +22.5% |
| 1-year return | +12.4% |
Five years of financials, as filed
Pulled from Skyworks Solutions's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $4.1B | $4.2B | $4.8B | $5.5B | $5.1B |
| Gross profit | $1.7B | $1.7B | $2.1B | $2.6B | $2.5B |
| Operating income | $500M | $637M | $1.1B | $1.5B | $1.6B |
| Net income | $477M | $596M | $983M | $1.3B | $1.5B |
| Operating cash flow | $1.3B | $1.8B | $1.9B | $1.4B | $1.8B |
| Capital expenditure | $195M | $157M | $210M | $489M | $638M |
| Total assets | $7.9B | $8.3B | $8.2B | $8.9B | $8.6B |
| Total liabilities | $2.1B | $1.9B | $2.0B | $3.4B | $3.3B |
| Shareholder equity | $5.8B | $6.4B | $6.2B | $5.5B | $5.3B |
| Cash | $1.6B | $1.6B | $1.0B | $820M | $876M |
| Long-term debt | $497M | $995M | $993M | $1.7B | $2.2B |
| Free cash flow | $1.1B | $1.7B | $1.6B | $935M | $1.1B |
| Gross margin | 41.2% | 41.2% | 44.2% | 47.5% | 49.2% |
| Operating margin | 12.2% | 15.3% | 23.6% | 27.8% | 31.6% |
| Net margin | 11.7% | 14.3% | 20.6% | 23.2% | 29.3% |
| Diluted shares | 155M | 162M | 160M | 163M | 167M |
Share count is down 7.1% over 4 years. Buybacks have been shrinking the pie.
What Skyworks Solutions says it does
Skyworks Solutions, Inc., together with its consolidated subsidiaries ("Skyworks" or the "Company"), is a leading developer, manufacturer and provider of analog and mixed-signal semiconductor products and solutions for numerous applications, including aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, smartphone, tablet, and wearables. Over the past two decades, Skyworks has made important investments to address key network technologies, from cellular to advanced Wi-Fi ® , enhanced GPS, and Bluetooth ® , among others. Capitalizing on both organic growth and strategic acquisitions, we are targeting high-growth verticals, while at the same time, seeking to diversify our revenue and customer set. Targeted investments in next-generation technology and solutions, technical talent, and fabrication capabilities have created the opportunity to expand into…
Risk factors SWKS lists in its 10-K
- Associated with the Proposed Transaction with Qorvo
- Risks Associated with Operating a Global Business
- Risks Associated with the Development, Manufacturing, and Sale of Our Products
- Risks Related to Acquisitions and Indebtedness
- Risks Associated with Cybersecurity and Intellectual Property Protection
- Risks Associated with Claims and Litigation
- Risks Associated with Owning our Common Stock
- Risks Associated with the Proposed Transaction with Qorvo
- Failure to realize the benefits expected from the Mergers could adversely affect our business, results of operations, and financial condition
- The Merger Agreement contains provisions that limit our ability to pursue alternative transactions to the Mergers which could discourage a potential third party from making an alternative transaction proposal
- While the Merger Agreement is in effect, we are subject to restrictions on our business activities
- Our outstanding indebtedness could reduce our flexibility to operate our business
- The risks of doing business internationally apply to all aspects of our operations
- Changes in tax laws and regulations could have an adverse impact on our operating results