Skyworks Solutions, Inc. (SWKS) | Investment Case

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on SWKS

Skyworks Solutions' recent performance was negatively impacted by analyst expectations of a decline in earnings. Asset Management One Co. Ltd. significantly reduced its stake in the company by 89.9%, selling 60,096 shares. Despite Q4 revenue of $1.10 billion exceeding guidance, and EPS of $1.76, concerns surrounding future earnings and potential merger with Qorvo, Inc. may have affected investor sentiment. A law firm, Halper Sadeh LLC, is investigating the fairness of the proposed merger to Skyworks shareholders.

1.c. Company Highlights

Last Price	69.32
Change Percentage	0.45%
Open	68.95
Previous Close	69.01
Market Cap ( Millions)	10306
Volume	2331397
Year High	95.46
Year Low	47.93
M A 50	71.96
M A 200	70.43

FCF Yield	10.59%
Dividend Yield	4.07%
ROE	8.04%
Debt / Equity	20.90%
Net Debt / EBIDTA	4.11%
Price To Book	1.86
Price Earnings Ratio	22.43
Price To FCF	9.44
Price To sales	2.52
EV / EBITDA	10.18

2. Skyworks' Strong Q4 Results Driven by Mobile and Broad Markets

Skyworks delivered a robust fourth fiscal quarter, with revenue reaching $1.1 billion, exceeding the high end of their guidance range. Earnings per share (EPS) came in at $1.76, significantly above estimates of $1.45. Gross profit was $511 million, with a gross margin of 46.5%. The company's strong performance was fueled by a significant upside in mobile and sustained strength across broad markets. Operating expenses were $247 million, slightly above the high end of their guidance range, partly due to an extra week in the quarter, which added about $7 million.

Publication Date: Nov -13

                                    📋 Highlights
                                    Revenue and Earnings:
                                                Skyworks reported $1.1 billion revenue, surpassing guidance, with $1.76 earnings per share and $1.1 billion free cash flow for fiscal 2025.
Mobile Segment Growth:
                                                Mobile revenue rose 21% sequentially and 7% YoY, driven by strong sell-through at top customers and Android growth.
Broad Markets Momentum:
                                                Edge IoT, automotive, and data centers drove Broad Markets growth, with WiFi 7 adoption accelerating and automotive run rate hitting a record high.
Financial Margins:
                                                Gross profit reached $511 million at 46.5% margin, while operating expenses were $247 million, slightly above guidance.
Fiscal 2026 Outlook:
                                                Free cash flow expected to remain solid at ~27% margin, with Q1 guidance of $975M–$1.025B revenue and mobile demand projected to decline mid-teens sequentially.

                                

Segment Performance

The mobile segment was a key driver, with revenue up 21% sequentially and 7% year-over-year, driven by healthy sell-through and a richer product mix at their top customer, as well as continued growth in Android. Broad Markets also delivered a solid quarter, with revenue growing 3% sequentially and 7% year-over-year, driven by growth across edge IoT, automotive, and data center. The company's outperformance in mobile reflects the increasing demand for RF content, driven by internal modem adoption, added AI functionality, and higher RF complexity.

Growth Drivers

Skyworks is well-positioned for long-term growth, with multiple drivers, including WiFi 7 and WiFi 8 adoption, automotive connectivity, in-vehicle entertainment, and broadcast radio. The company is investing in segments with higher growth opportunities and longer revenue cycles. The data center infrastructure business is also expected to continue its recovery, driven by broad-based demand and increasing design win activity for next-generation 800-gig platforms.

Valuation

With a P/E Ratio of 22.48 and an EV/EBITDA of 10.2, Skyworks appears to be reasonably valued. The company's dividend yield of 4.05% and free cash flow yield of 10.57% are also attractive. Analysts estimate next year's revenue growth at -9.2%, but Skyworks' strong track record and diversified growth drivers suggest that the company is well-positioned for long-term success. The company's return on equity (ROE) of 8.04% and return on invested capital (ROIC) of 6.35% are also respectable.

Outlook

Looking ahead to the first quarter of fiscal '26, Skyworks expects revenue to be between $975 million to $1.025 billion, with mobile declining low to mid-teens sequentially and broad markets up slightly sequentially. The company's guidance suggests a continued strong performance in broad markets, driven by the ongoing adoption of WiFi 7 and the growth of their automotive business. Overall, Skyworks' strong Q4 results and positive outlook suggest that the company is on track to deliver long-term value to shareholders.

3. NewsRoom

American Century Companies Inc. Grows Stock Position in Skyworks Solutions, Inc. $SWKS

Dec -03

Source: defenseworld.net

Skyworks Solutions, Inc. (SWKS) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

Advisors Asset Management Inc. Increases Stock Holdings in Skyworks Solutions, Inc. $SWKS

Nov -26

Source: defenseworld.net

Skyworks to Present at UBS Global Technology and AI Conference

Nov -25

Source: globenewswire.com

Skyworks Solutions, Inc. (NASDAQ:SWKS) Given Consensus Recommendation of “Hold” by Analysts

Nov -22

Source: defenseworld.net

Skyworks Solutions, Inc. $SWKS Shares Purchased by Allworth Financial LP

Nov -19

Source: defenseworld.net

Here are Tuesday's Top Wall Street Analyst Research Calls: Coreweave, Instacart, Qorvo, Robinhood Markets, Skyworks Solutions, Viasat and More

Nov -11

Source: 247wallst.com

Could Cash Machine Skyworks Solutions Stock Be Your Next Buy?

Nov -10

Source: forbes.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.85%)

6. Segments

Distibutors

Expected Growth: 0.8%

Skyworks Solutions' distributors segment growth of 0.8 is driven by increasing demand for 5G-enabled smartphones, growing adoption of IoT devices, and rising need for high-performance filters and amplifiers in wireless infrastructure. Additionally, the company's strategic partnerships and expanding presence in emerging markets contribute to its growth momentum.

Direct Customers

Expected Growth: 1.2%

Skyworks Solutions' direct customers, such as Apple, Samsung, and Huawei, drive growth through increasing demand for 5G-enabled smartphones and IoT devices. Additionally, the adoption of Wi-Fi 6 and 5G-enabled laptops contributes to the 1.2% growth. Furthermore, the company's diversification into emerging markets and its focus on developing innovative RF and analog semiconductor solutions also support this growth.

7. Detailed Products

Amplifiers

Skyworks' amplifiers are designed to provide high linearity, low noise, and high output power for a variety of wireless communication systems.

Attenuators

Skyworks' attenuators are used to reduce the power level of a signal in a communication system, providing a precise amount of attenuation.

Circulators and Isolators

Skyworks' circulators and isolators are used to control the direction of signal flow and prevent signal reflection in communication systems.

Front-end Modules (FEMs)

Skyworks' FEMs integrate multiple components into a single module, providing a complete RF front-end solution for wireless communication systems.

Low Noise Amplifiers (LNAs)

Skyworks' LNAs are designed to provide high gain and low noise figure, making them ideal for use in wireless communication systems.

Power Amplifiers

Skyworks' power amplifiers are designed to provide high output power and efficiency, making them ideal for use in wireless communication systems.

Switches

Skyworks' switches are used to control the flow of signals in communication systems, providing high isolation and low insertion loss.

Voltage-Controlled Oscillators (VCOs)

Skyworks' VCOs are used to generate a stable frequency signal in wireless communication systems.

8. Skyworks Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Skyworks Solutions, Inc. is medium due to the presence of alternative semiconductor solutions from competitors.

Bargaining Power Of Customers

The bargaining power of customers for Skyworks Solutions, Inc. is low due to the company's strong relationships with its customers and the lack of buyer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Skyworks Solutions, Inc. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Skyworks Solutions, Inc. is low due to the high barriers to entry in the semiconductor industry, including significant capital requirements and technological expertise.

Intensity Of Rivalry

The intensity of rivalry for Skyworks Solutions, Inc. is high due to the competitive nature of the semiconductor industry, with multiple players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	20.74%
Debt Cost	5.47%
Equity Weight	79.26%
Equity Cost	10.67%
WACC	9.59%
Leverage	26.17%

11. Quality Control: Skyworks Solutions, Inc. passed 8 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Cirrus Logic

A-Score: 5.0/10

Value: 4.0

Growth: 7.1

Quality: 8.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

Skyworks Solutions

A-Score: 4.9/10

Value: 4.6

Growth: 4.3

Quality: 6.8

Yield: 6.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

Amkor Technology

A-Score: 4.3/10

Value: 4.6

Growth: 5.4

Quality: 4.8

Yield: 3.0

Momentum: 4.0

Volatility: 3.7

1-Year Total Return ->

Universal Display

A-Score: 4.2/10

Value: 1.2

Growth: 6.6

Quality: 8.6

Yield: 2.0

Momentum: 1.5

Volatility: 5.3

1-Year Total Return ->

Veeco Instruments

A-Score: 4.0/10

Value: 3.0

Growth: 5.9

Quality: 5.9

Yield: 0.0

Momentum: 5.0

Volatility: 4.3

1-Year Total Return ->

Vishay

A-Score: 3.8/10

Value: 7.5

Growth: 1.9

Quality: 2.7

Yield: 4.0

Momentum: 3.0

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.68%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.59%

Skyworks Solutions, Inc. - US83088M1027

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SWKS

1.c. Company Highlights

Higher Yield

Better Quality

Medium Volatility

Earnings Beats

Revenues Beats

Revenues Miss

Average Growth

Stable Momentum

Average Quality

Weak Momentum

2. Skyworks' Strong Q4 Results Driven by Mobile and Broad Markets

Segment Performance

Growth Drivers

Valuation

Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.85%)

6. Segments

Distibutors

Expected Growth: 0.8%

Direct Customers

Expected Growth: 1.2%

7. Detailed Products

Amplifiers

Attenuators

Circulators and Isolators

Front-end Modules (FEMs)

Low Noise Amplifiers (LNAs)

Power Amplifiers

Switches

Voltage-Controlled Oscillators (VCOs)

8. Skyworks Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Skyworks Solutions, Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

69.32$

Current Price

69.32$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA