One-glance verdict
Undervalued
$97.57 our estimate vs market $75.38
Wall Street consensus: $68.35 (-29.9% lower than our fair-value estimate)
23% below our estimate, below the bear case
Fundamentals snapshot
Skyworks Solutions, Inc.
SWKS · NMS · Technology · Semiconductors
Current price
$75.38
52-week range
$51.93 - $90.90
Market cap
$11.34B
Balance sheet
Healthy
19.34x Strong cushion
Net cash $118.10M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Free cash flow was positive in 10/10 years.
- Reward Dividend yield is 4.1% with 13-year payout history.
- Risk Stock trades 98.4% above its 5-year average P/E.
- Risk Operating margin compressed from 28.4% to 8.8% over 3 years.
What this company does
Skyworks Solutions, Inc.
Skyworks Solutions makes the special computer chips (semiconductors) that allow our devices like smartphones, cars, and smart home gadgets to communicate wirelessly. The company makes most of its money selling these crucial parts to the world's largest electronics companies, particularly major smartphone manufacturers. Because its products are a key part of the modern electronics supply chain (the network of companies that create and distribute a product), the company's health is often tied to how many new gadgets customers are buying.
How the company got here
Skyworks was officially created in 2002, but its roots go back to a company from 1962. It was formed by merging two existing businesses that made specialized electronics for wireless communication. This new company focused on making the crucial components inside mobile phones. As smartphones became popular, Skyworks grew by supplying key parts to major phone makers. More recently, it bought another company's automotive and infrastructure business in 2021 to expand beyond just phones.
What it actually does
Skyworks makes tiny electronic components called semiconductors, which are essential for wireless communication. Think of them as the translators and amplifiers that help your smartphone, smart watch, or car connect to cellular networks, Wi-Fi, and Bluetooth. Their main products are things like power amplifiers (chips that boost the signal so your phone can reach a cell tower without draining the battery) and filters (which block unwanted signals to give you a clear connection). You can't buy these in a store, but they are critical parts inside the electronics you use every day.
Mobile
This is the company's largest business, making the essential chips that go into smartphones and tablets from major manufacturers like Apple and Samsung. These components manage all the radio frequency (the invisible waves that carry data) tasks, like connecting to 4G and 5G networks. When a phone maker designs a new model, they buy these specialized chips from Skyworks to handle the complex job of sending and receiving signals clearly and efficiently. This part of the business provides the majority of the company's revenue (the total money it brings in from sales).
Broad Markets
This part of the company sells chips for almost everything else that isn't a smartphone. This includes technology for connected cars, wireless routers for your home, smart home devices, medical equipment, and the cellular infrastructure (the equipment in cell towers) that makes the whole network run. While smaller than the mobile business, this is a key area of growth for the company. The goal is to sell to a wider variety of customers so the company doesn't depend too heavily on the yearly cycle of new phone releases.
What management is betting on now
The company's main strategy is to continue providing the high-performance chips needed for the latest 5G smartphones, which require more complex technology. At the same time, management is heavily focused on diversifying its business by growing its 'Broad Markets' segment. They are pushing to get their chips into more electric vehicles, factory automation, and 5G infrastructure. This reduces their dependence on any single customer or market and taps into other major technology trends.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$393.30M
FY2025 Q1
$338.20M
FY2025 Q2
$370.90M
FY2025 Q3
$252.70M
FY2025 Q4
$144.00M
FY2026 Q1
$339.00M
FY2026 Q2
$-32.10M
FY2026 Q3
$-16.70M
Revenue
$934.80M
Net income
$33.90M
Diluted EPS
0.22
Operating cash flow
$70.40M
Free cash flow
$-16.70M
Fetching…
Sources
Revenue
$943.70M
Net income
$35.60M
Diluted EPS
0.24
Operating cash flow
$50.30M
Free cash flow
$-32.10M
Fetching…
Sources
Revenue
$1.04B
Net income
$79.20M
Diluted EPS
0.53
Operating cash flow
$395.50M
Free cash flow
$339.00M
Fetching…
Sources
Revenue
$1.10B
Net income
$141.40M
Diluted EPS
0.95
Operating cash flow
$200.00M
Free cash flow
$144.00M
Fetching…
Sources
Revenue
$965.00M
Net income
$105.00M
Diluted EPS
0.70
Operating cash flow
$314.20M
Free cash flow
$252.70M
Fetching…
Sources
Revenue
$953.20M
Net income
$68.70M
Diluted EPS
0.43
Operating cash flow
$409.40M
Free cash flow
$370.90M
Fetching…
Sources
Revenue
$1.07B
Net income
$162.00M
Diluted EPS
1.00
Operating cash flow
$377.20M
Free cash flow
$338.20M
Fetching…
Sources
Revenue
$1.02B
Net income
$60.50M
Diluted EPS
0.36
Operating cash flow
$476.10M
Free cash flow
$393.30M
Fetching…
Sources
Is it cheap or expensive?
Fair value $97.57 vs current price $75.38
Wall Street consensus is the average analyst price target: $68.35 (-29.9% lower than our fair-value estimate).
Our most-likely fair value is $97.57 a share — about 29.4% above today's price of $75.38, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $118.1M - more cash than debt. Interest coverage 19.3x.
Net debt
$-118.10M
Interest coverage
19.34x
Skyworks Solutions, Inc.'s profit covers its interest bill about 19.3 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
SWKS
BASELINE
Skyworks Solutions, Inc.
Total debt $681.10M Interest coverage 19.34x This is the baseline the peer rows are being compared against.
Total debt $15.27B Interest coverage 18.67x -4% vs SWKS Has roughly the same debt cushion as SWKS.
Total debt $59.42B Interest coverage 8.12x -58% vs SWKS Carries about 2.4x less debt cushion than SWKS.
Total debt $1.55B Interest coverage 6.75x -65% vs SWKS Carries about 2.9x less debt cushion than SWKS.
Total debt $10.98B Interest coverage 6.51x -66% vs SWKS Carries about 3.0x less debt cushion than SWKS.
Total debt $9.16B Interest coverage 9.45x -51% vs SWKS Carries about 2.0x less debt cushion than SWKS.
What you should know
The case for and against SWKS
2 Rewards
2 Risks
Rewards
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 4.1% with 13-year payout history.
Risks
-
Stock trades 98.4% above its 5-year average P/E.
-
Operating margin compressed from 28.4% to 8.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
39.06x
Forward P/E
15.19x
P/B
1.98x
P/S
2.83x
EV/EBITDA
12.75x
PEG ratio
10.48x
Profitability
How much profit each dollar creates
Gross margin
40.7%
Operating margin
8.8%
Net margin
7.2%
ROE
5.1%
ROA
3.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.12x
Current ratio
3.10x
Quick ratio
1.31x
Total debt
$681.10M
Total cash
$799.20M
Growth
How the business has been compounding
Revenue TTM
$4.01B
Revenue 5Y CAGR
-5.4%
EPS TTM
1.93
EPS 5Y CAGR
-26.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$716.20M
Free CF TTM
$1.11B
FCF margin
27.5%
Dividend
Shareholder payout
Yield
4.1%
Payout ratio
147.2%
Last ex-div date
2026-05-26