One-glance verdict
Within fair range
$85.37 our estimate vs market $83.43
Wall Street consensus: $77.51 (-9.2% lower than our fair-value estimate)
2% below our estimate
Fundamentals snapshot
Skyworks Solutions, Inc.
SWKS · NMS · Technology · Semiconductors
Current price
$83.43
52-week range
$51.93 - $92.80
Market cap
$19.62B
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
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 119.5% 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 important computer chips used in things like smartphones and cars, with most of their money coming from selling these chips to big technology companies. This matters because their chips are key parts in the devices we use every day, so how well they sell affects the company's overall success and profitability.
How the company got here
Skyworks Solutions was formed in 2002 when Alpha Industries merged with Conexant's wireless communications division. [1] Its roots go back even further, to Alpha Industries. [4] The company has grown through strategic acquisitions, including Axiom Microdevices in 2009 and Avnera in 2018. [1, 7] A significant move was the acquisition of Silicon Labs' Infrastructure & Automotive business in 2021, which expanded Skyworks' reach into new, high-growth markets. [7]
What it actually does
Skyworks designs and manufactures analog and mixed-signal semiconductors. [3] These are tiny electronic components that help devices communicate wirelessly and manage power. [2, 11] Think of them as the essential building blocks inside your smartphone, car, or smart home devices that allow them to send and receive signals, like Wi-Fi or cellular data, and ensure they operate efficiently. [2, 10, 11]
Mobile
This is Skyworks' largest business segment, making up about 60% of its revenue. [1] The company provides critical radio frequency (RF) components, such as amplifiers and filters, that are essential for smartphones to connect to cellular networks and Wi-Fi. [2, 10] As smartphones become more advanced with technologies like 5G, they require more sophisticated chips, which benefits Skyworks. [2, 5]
Broad Markets
This segment, representing about 40% of Skyworks' revenue, is a key area for growth. [1, 2] It includes semiconductors for a wide range of applications beyond mobile phones, such as in cars (for features like connected driving and infotainment), the Internet of Things (IoT) devices (like smart home gadgets), and industrial equipment. [2, 4, 5] Skyworks is actively expanding in this area because these markets can offer more stable revenue streams and less dependence on the fast-changing smartphone market. [4]
What management is betting on now
Skyworks' main strategy is to maintain its strong position in the mobile market, especially in premium smartphones, while aggressively growing its "Broad Markets" segment. [4, 5] They are investing in new technologies to keep up with the increasing complexity of wireless communication, particularly with the rollout of 5G. [5, 10] By diversifying into areas like automotive and IoT, Skyworks aims to reduce its reliance on any single customer or market and create more stable, long-term growth. [4, 7]
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 $85.37 vs current price $83.43
Wall Street consensus is the average analyst price target: $77.51 (-9.2% lower than our fair-value estimate).
Our most-likely fair value is $85.37 a share — about 2.3% away from today's price of $83.43, so the stock currently looks fairly priced.
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
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 119.5% 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)
43.23x
Forward P/E
14.17x
P/B
2.19x
P/S
4.89x
EV/EBITDA
14.13x
PEG ratio
1.72x
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
0.0%
Payout ratio
147.2%
Last ex-div date
2026-05-26