Skyworks Solutions, Inc. (SWKS)
Valuation Overview•Is Skyworks Solutions, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 53/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
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Verdict: Average quality business weighed down by significant growth concerns.
Wall Street is cautious, forecasting potential downside alongside robust expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
SWKS struggles with subpar profitability and pressured margins. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company is facing top-line contraction (-9.3% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 7.9%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $934.8M | -2.2% | -9.3% | +4.0% | +2.3% | |
| EBITDA | $165.2M | — | -24.3% | — | — | |
| Net Income | $33.9M | -19.9% | -27.9% | — | -5.0% | |
| EPS (Diluted) | $0.22 | -16.5% | -26.7% | -8.5% | -2.8% | |
| Free Cash Flow | -$254.7M | -33.7% | +6.5% | +6.5% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 40.7% | 42.2% | 44.6% | 47.0% |
| Operating Margin | 7.9% | 17.0% | 22.1% | 26.8% |
| Net Margin | 7.2% | 15.5% | 19.8% | 23.0% |
| FCF Margin | 4.9% | 33.6% | 27.9% | 27.2% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $1.03 | $1.08 | +4.9% | ||
| Q2'26 | $1.04 | $1.15 | +10.6% | ||
| Q1'26 | $1.40 | $1.54 | +10.0% | ||
| Q4'25 | $1.52 | $1.76 | +15.8% | ||
| Q3'25 | $1.24 | $1.33 | +7.3% | ||
| Q2'25 | $1.20 | $1.24 | +3.3% | ||
| Q1'25 | $1.57 | $1.60 | +1.9% | ||
| Q4'24 | $1.52 | $1.55 | +2.0% |
Total return is +9.5% (1Y), lagging the benchmark by -6.5%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +40.0% | +26.8% | — |
| 1Y | +9.5% | -6.5% | +2.6% |
| 3YCAGR | +0.0% | -22.2% | +8.0% |
| 5YCAGR | -9.9% | -22.2% | +7.3% |
| 10YCAGR | +3.6% | -9.9% | — |
The S&P 500 is at 31.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Skyworks Solutions, Inc. (SWKS) valuation, health, and returns.
Skyworks Solutions, Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $88.17)
Skyworks Solutions, Inc. has multiple valuation anchors: DCF Intrinsic Value: $88.17 | Peer Relative Fair Value: $200.96 | Wall Street Analyst Target: $71.75 (implying -19.1% upside). A convergence of these signals offers higher conviction.
Skyworks Solutions, Inc. displays fair financial health with a composite quality score of 53/100, supported by a Altman Z-Score of 5.6 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 6.3%.
Skyworks Solutions, Inc. pays a 3.1% dividend yield, covered by a 91% payout ratio with 12 years of growth, supplemented by a 0.3% buyback yield.
Skyworks Solutions, Inc.'s current growth trajectory is Accelerating. The company achieved -2.2% 1Y revenue growth and -16.5% 1Y EPS growth, compared to its 3Y revenue CAGR of -9.3%.
Wall Street consensus is Buy based on 60 analysts, beating EPS expectations in 92% of recent quarters with a 8-quarter streak. The consensus price target represents a -19.1% change from current levels.
Investment risks for Skyworks Solutions, Inc. include: -36.7% 1-year max drawdown, high beta (1.52x market volatility), stretched payout ratio. Volatility risk is characterized by a beta of 1.52x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.