GICS Sector : Technology
SkyWater Technology, Inc., together with its subsidiaries, provides semiconductor development and manufacturing services.The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, power discrete, microelectromechanical systems, and rad-hard integrated circuits.It serves customers operating in the computation, aerospace and defense, automotive and transportation, bio-health, consumer, and industrial/internet of things industries.
SkyWater Technology reported record Q3 revenues of $150.7 million, exceeding the midpoint of their guidance range by $15 million. The company's EPS came in at $0.24, significantly beating estimates of -$0.172. The strong revenue performance was driven by the acquisition of Fab 25 in Texas, which contributed nearly $87 million of wafer services revenue, and the ATS business, which saw revenues come in above expectations at over $54 million. The consolidated gross margin for the quarter was not explicitly stated, but the guidance for Q4 is expected to be in the range of 17% to 20%.
Publication Date: Nov -23
The ATS business is driven by strategic multiyear development programs with the government, and the company now expects Q4 ATS revenues of approximately $50 million. The Quantum computing market continues to be a growth area, with the company signing 4 new customer engagements since Q2, including Silicon Quantum Computing (SQC) and QuamCore. As Thomas Sonderman noted, "We see ourselves operating across all modalities, including ion trap. This allows us to earn Advanced Technology System (ATS) dollars and consolidate value chains."
The company expects Q4 revenues to reach a new record between $155 million and $165 million, driven by continued growth in wafer services and tools revenue. The guidance for adjusted EBITDA in Q4 is expected to be in the range of $16 million to $22 million. For 2026, analysts estimate revenue growth at 41.3%, indicating a strong outlook for the company's continued expansion.
Using the current valuation metrics, SkyWater Technology has a P/S Ratio of 1.93 and an EV/EBITDA of 6.19. These metrics suggest that the company's stock may be reasonably valued, considering its growth prospects. However, the ROE of 144.4% indicates a highly efficient use of equity, which may be a positive indicator for investors. As the company continues to grow and expand its operations, it will be essential to monitor its valuation metrics to determine if the current price is justified.
SkyWater Technology Announces Participation in 14th Annual NYC Summit
Dec -01
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SkyWater Technology and Silicon Quantum Computing Team to Advance Hybrid Quantum-Classical Computing
Nov -20
SkyWater Technology and QuamCore Announce Collaboration to Advance Scalable Superconducting Quantum Computing
Nov -06
SkyWater Technology and QuamCore Announce Collaboration to Fabricate Digital Superconducting Controller for Scalable Quantum Computing
Nov -06
SkyWater Technology, Inc. (SKYT) Q3 2025 Earnings Call Transcript
Nov -06
SkyWater Technology, Inc. (SKYT) Beats Q3 Earnings and Revenue Estimates
Nov -06
Growing demand for custom and radiation-hardened ICs in aerospace and defense, coupled with increasing adoption in commercial applications, drives the market growth. Advancements in technology and increasing investments in R&D are also expected to fuel growth.
SkyWater's Rad-Hard By Design (RHBD) technology provides a comprehensive approach to radiation-hardened design, ensuring high-reliability and fault-tolerant performance in extreme environments.
SkyWater's mixed-signal and analog technology offers a broad range of process nodes and design capabilities for high-performance, low-power applications.
SkyWater's HPC technology enables the development of high-performance, low-power computing solutions for datacenter and edge applications.
SkyWater's custom foundry services provide a flexible and scalable platform for designing and manufacturing custom integrated circuits (ICs) for various applications.
SkyWater's design enablement services provide a comprehensive suite of tools, IP, and design support for efficient and effective IC design and development.
SkyWater Technology, Inc. has a low threat of substitutes due to its unique technology and high barriers to entry in the semiconductor industry.
The bargaining power of customers is moderate for SkyWater Technology, Inc. as they have some negotiating power due to the presence of other foundry players, but the company's specialized technology and high switching costs reduce this power.
The bargaining power of suppliers is low for SkyWater Technology, Inc. as the company has a diversified supply chain and is not heavily dependent on any single supplier.
The threat of new entrants is high for SkyWater Technology, Inc. due to the increasing demand for semiconductor technology and the presence of new players entering the market.
The intensity of rivalry is high for SkyWater Technology, Inc. as the company operates in a highly competitive industry with established players and new entrants vying for market share.
| Value | |
|---|---|
| Debt Weight | 8.09% |
| Debt Cost | 14.38% |
| Equity Weight | 91.91% |
| Equity Cost | 18.56% |
| WACC | 18.22% |
| Leverage | 8.81% |
Value: 9.6
Growth: 3.0
Quality: 3.4
Yield: 0.0
Momentum: 7.5
Volatility: 3.7
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Value: 7.0
Growth: 4.8
Quality: 4.2
Yield: 0.0
Momentum: 6.5
Volatility: 1.0
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Value: 3.7
Growth: 6.1
Quality: 1.6
Yield: 0.0
Momentum: 9.0
Volatility: 1.0
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Value: 6.4
Growth: 3.4
Quality: 3.3
Yield: 0.0
Momentum: 7.5
Volatility: 0.7
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Value: 5.5
Growth: 4.7
Quality: 4.7
Yield: 0.0
Momentum: 5.0
Volatility: 1.3
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Value: 6.6
Growth: 6.9
Quality: 3.0
Yield: 0.0
Momentum: 3.5
Volatility: 0.3
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