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SWKSSkyworks Solutions, Inc.
$89.96$13.5B
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  4. Financial Ratios

Skyworks Solutions, Inc. (SWKS) Financial Ratios

Latest Ratios: P/E Ratio 29.2x · EV/EBITDA 14.1x · ROE 7.9%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

SWKS Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$13.5B$12.0B$16.0B$15.8B$13.9B$27.4B$24.9B$13.5B$16.6B$19.0B$14.6B
Enterprise Value$13.6B$12.0B$15.8B$16.6B$15.8B$28.9B$24.6B$12.7B$15.9B$17.4B$13.5B
P/E Ratio →29.2125.0326.7916.0810.9218.2730.5915.8418.1118.8414.70
P/S Ratio3.312.933.823.312.545.367.434.004.305.214.45
P/B Ratio2.422.082.522.602.555.175.993.284.064.684.13
P/FCF12.2410.819.579.7515.2224.4430.9514.3220.0316.4616.24
P/OCF10.419.198.758.519.7715.4520.719.8913.1812.9313.35

P/E links to full P/E history page with 30-year chart

SWKS EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—2.943.783.482.885.667.323.754.114.774.12
EV / EBITDA14.1012.4614.519.547.1114.1019.559.579.8111.549.91
EV / EBIT27.1621.6723.6814.5210.3517.9327.5413.1812.0313.8812.05
EV / FCF—10.859.4710.2417.2425.8130.4713.4219.1515.0615.04

SWKS Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin41.2%41.2%41.2%44.2%47.5%49.2%48.1%47.5%50.4%50.4%50.6%
Operating Margin12.2%12.2%15.3%23.6%27.8%31.6%26.6%28.2%34.1%34.3%34.0%
Net Profit Margin11.7%11.7%14.3%20.6%23.2%29.3%24.3%25.3%23.7%27.7%30.3%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE7.9%7.9%9.6%17.0%23.7%31.7%19.7%20.8%22.5%26.6%29.7%
ROA5.9%5.9%7.1%11.4%14.6%21.9%16.4%17.7%19.5%24.0%26.3%
ROIC6.3%6.3%7.3%11.9%16.2%22.8%19.0%21.5%34.0%38.3%36.7%
ROCE7.0%7.0%8.4%14.9%19.6%25.6%19.5%21.4%30.6%32.0%32.4%

SWKS Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.210.210.190.250.440.460.04————
Debt / EBITDA1.251.251.100.871.091.180.14————
Net Debt / Equity—0.01-0.030.130.340.29-0.09-0.21-0.18-0.40-0.31
Net Debt / EBITDA0.040.04-0.150.450.830.75-0.31-0.64-0.45-1.07-0.79
Debt / FCF—0.04-0.100.492.021.37-0.48-0.90-0.88-1.40-1.20
Interest Coverage20.4420.4421.7317.7531.83120.31—————

SWKS Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio2.332.335.543.332.634.355.175.975.806.799.52
Quick Ratio1.761.764.242.161.643.013.374.344.555.527.51
Cash Ratio1.041.042.590.770.481.552.172.822.644.175.16
Asset Turnover—0.520.500.570.620.590.660.700.800.800.85
Inventory Turnover3.193.193.132.382.382.932.162.913.913.673.83
Days Sales Outstanding—53.4244.4566.1072.7954.0238.9950.2961.8845.4546.23

SWKS Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield3.1%3.6%2.8%2.6%2.7%1.2%1.2%2.0%1.5%1.1%1.4%
Payout Ratio90.7%90.7%73.7%41.2%29.3%22.7%37.7%32.1%26.5%21.2%20.2%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield3.4%4.0%3.7%6.2%9.2%5.5%3.3%6.3%5.5%5.3%6.8%
FCF Yield8.2%9.2%10.4%10.3%6.6%4.1%3.2%7.0%5.0%6.1%6.2%
Buyback Yield0.3%0.4%0.7%1.3%7.0%0.9%2.7%5.0%4.9%2.5%4.1%
Total Shareholder Yield3.4%4.0%3.5%3.9%9.7%2.2%4.0%7.1%6.3%3.7%5.5%
Shares Outstanding—$155M$162M$160M$163M$167M$170M$175M$183M$187M$192M

Key Metrics

Growth RegimeDecelerating
ProfitabilityStrained
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Customer concentration and margin pressure

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

Margin Compression Reflects Underutilization

Gross margin slipped to 40.1% in 2026Q3 from 41.6% a year earlier, as reported in financial statements, while operating margin halved to 5.2%, indicating fixed-cost underabsorption amid weak demand.

The sequential decline in operating margin from 11.1% in 2026Q1 to 5.2% in 2026Q3, despite a relatively stable gross margin around 40%, suggests that operating expenses, particularly R&D, are not flexing down with revenue. This implies that the company's high fixed-cost fab model is operating below optimal utilization, and the margin trajectory may not recover until volumes improve. Investors should monitor whether the 40% gross margin becomes a new baseline or a cyclical trough, as the company's ability to pass on costs to a concentrated customer base appears limited.

Return on Capital Decays to Cyclical Lows

ROIC fell to 0.7% in 2026Q3 from 2.2% in 2024Q2, as per quarterly data, reflecting a sharp decline in operating income relative to invested capital, signaling a cyclical trough in capital efficiency.

The ten-quarter trend shows ROIC oscillating between 0.6% and 2.2%, with the latest quarter near the bottom, indicating that the company is not compounding returns on its capital base. The decline is driven by margin compression rather than asset growth, as total assets have contracted modestly. This suggests that the company's capital intensity, particularly in fab equipment, is not generating adequate returns during the current demand downturn, and a recovery in utilization is necessary to restore historical return levels.

Working Capital Drag Intensifies Cash Strain

Cash conversion cycle lengthened to 144 days in 2026Q3 from 121 days a year earlier, as per financial statements, driven by a spike in days inventory outstanding to 155, indicating slower inventory turnover.

The increase in DIO from 110 days in 2025Q4 to 155 days in 2026Q3 suggests that inventory is building relative to sales, likely due to softening demand or preparation for new product ramps. This working capital absorption contributed to the negative free cash flow of -$254.7M in the quarter, as reported in the cash flow statement. The company's ability to manage inventory levels will be critical to restoring cash generation, especially given its high fixed-cost structure and the risk of obsolescence in RF components.

Low Leverage Masks Refinancing Comfort

Debt-to-equity remains low at 0.12 in 2026Q3, with interest coverage of 9.27x, as per balance sheet data, indicating that debt service is not a near-term concern despite weak operating income.

While the absolute debt level is modest, the interest coverage ratio has declined from 29.0x in 2025Q1 to 9.27x in 2026Q3, reflecting the sharp drop in operating income. This suggests that the company's cushion for debt service is thinning, though still adequate. The low leverage provides financial flexibility, but investors should monitor whether the company's cash position, which fell to $790M, continues to decline, as it may limit future capital returns or strategic investments.

Liquidity Buffer Thins but Remains Adequate

Current ratio fell to 3.10 in 2026Q3 from 5.19 in 2024Q2, as per quarterly data, while cash dropped to $790M, indicating a reduced but still comfortable liquidity cushion.

The quick ratio of 1.94 suggests that even without inventory, the company can cover current liabilities, but the trend is concerning as the current ratio has halved over two years. The negative free cash flow in 2026Q3, coupled with continued dividend payments, may further erode the cash balance if the operational downturn persists. However, the low debt levels and access to credit markets, as evidenced by the recent debt issuance, provide additional liquidity support, though the company's reliance on a single customer remains a key risk.

P/E Misleads on Earnings Power

The trailing P/E of 19.9 appears reasonable, but forward P/E of 12.2 implies a sharp earnings recovery, as per valuation data, which may overstate near-term earnings power given margin pressures.

The wide gap between trailing and forward P/E suggests the market is pricing in a significant rebound in earnings, likely driven by expected content gains in upcoming smartphone cycles. However, this optimism may be misplaced if the current margin compression persists, as the company's high fixed costs and customer concentration could limit earnings recovery. Investors should focus on EV/EBITDA, which at 9.62x is more reflective of the company's cash-generating ability, and consider normalizing earnings for the cyclical trough before applying a multiple.

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SWKS — Frequently Asked Questions

Quick answers to the most common questions about buying SWKS stock.

What is Skyworks Solutions, Inc.'s P/E ratio?

Skyworks Solutions, Inc.'s current P/E ratio is 29.2x. The historical average is 24.3x. This places it at the 85th percentile of its historical range.

What is Skyworks Solutions, Inc.'s EV/EBITDA?

Skyworks Solutions, Inc.'s current EV/EBITDA is 14.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.3x.

What is Skyworks Solutions, Inc.'s ROE?

Skyworks Solutions, Inc.'s return on equity (ROE) is 7.9%. The historical average is 9.7%.

Is SWKS stock overvalued?

Based on historical data, Skyworks Solutions, Inc. is trading at a P/E of 29.2x. This is at the 85th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Skyworks Solutions, Inc.'s dividend yield?

Skyworks Solutions, Inc.'s current dividend yield is 3.10% with a payout ratio of 90.7%.

What are Skyworks Solutions, Inc.'s profit margins?

Skyworks Solutions, Inc. has 41.2% gross margin and 12.2% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does Skyworks Solutions, Inc. have?

Skyworks Solutions, Inc.'s Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.