Skyworks Solutions, Inc (NASDAQ:SWKS) Shows Near-Term Technical Weakness Despite Under-Valued Reading

Skyworks presents contrasting signals: WMDST values the stock as under-valued while recent operational moves and momentum divergence pressure the near-term outlook. Liquidity and cash generation remain strengths, but directional indicators point toward elevated volatility before a decisive trend emerges.

Recent News

Aug 25, 2025 — Skyworks appointed Phil Carter as chief financial officer. Aug 20, 2025 — the company unveiled an ultra-low jitter clock-buffer product for high-speed connectivity. Sep 2, 2025 — Skyworks scheduled presentations at a major industry conference. Sep 8, 2025 — broker consensus shifted toward a “reduce”/hold posture in recent analyst notes.

Technical Analysis

ADX sits at 26.52, indicating a discernible trend strength that can amplify near-term price moves and increase volatility; that strength amplifies the impact of any directional bias established by other indicators.

Directional indicators show a bearish bias: DI+ at 30.03 with a peak & reversal denotes a bearish signal, while DI- at 15.07 with a dip & reversal also denotes bearish pressure. Together, these readings favor downside momentum against the current valuation backdrop.

MACD registers 1.65 and trends increasing, with the MACD above the signal line at 1.23; that crossover represents a bullish momentum signal and supports the potential for short-term upward retracement despite the DI signals.

MRO equals -3.92, a negative reading that implies price sits below an internal target and therefore carries upward potential; its trend shows a peak & reversal, which tempers that potential and signals reduced strength in the momentum move.

RSI at 57.2 with a peak & reversal trend suggests previous upside momentum has lost steam and the oscillator now pressures price from the upper-neutral range; this aligns with directional indicator bearishness while leaving room for intermittent bounces.

Price sits above short- and medium-term averages: 12-day EMA at $78.25, 20-day average $77.08, 50-day average $73.66 and 200-day average $72.52, so the market retains a bullish mean-position even as momentum indicators reverse. Bollinger boundaries between $73.39 and $80.77 frame current amplitude; super trend lower support stands near $76.33.

 


Fundamental Analysis

Top-line and margins: total revenue for the period equals $965,000,000. Reported YoY revenue growth shows -109.217%, while the reported overall revenue growth reads 1.238%, creating a contrast between sequential and year-over-year metrics. Gross margin measures 41.554% and EBIT margin equals 12.29%, with EBIT margin improving QoQ by 7.28% but declining YoY by 20.51%. The EBIT margin sits below the industry peer mean of 18.249% and below the industry peer median of 24.792%.

Profitability and cash: GAAP net income registers $105,000,000 and EBIT equals $118,600,000. Operating cash flow totals $314,200,000 and free cash flow equals $246,000,000, producing a free cash flow yield of 2.30%, which sits above the industry peer median for free cash flow yield. Cash and short-term investments total $1,317,900,000, and cash alone equals $1,185,900,000, supporting capital flexibility.

Balance sheet and leverage: current ratio equals 2.39 and quick ratio equals 1.80, reflecting ample short-term liquidity. Total debt stands at $1,207,800,000 with debt-to-EBITDA at 5.15x, indicating material leverage relative to current earnings; interest coverage near 17.97x remains comfortable.

Earnings, payout and valuation context: reported EPS equals $1.33 versus an estimate of $1.24, a $0.09 beat and an EPS surprise of 7.26%. Dividend payout ratio reads 98.95% with a dividend coverage ratio of 1.01 and a dividend rate near $0.70 per share; that distribution consumes most reported earnings but links to strong free-cash coverage. Price multiples show P/E about 53.82 and forward P/E roughly 43.67; price-to-book stands near 1.89, below the industry peer mean of 4.19. WMDST values the stock as under-valued based on the firm’s cash generation, relative price/book and free-cash-flow dynamics.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-06-30
REPORT DATE: 2025-08-05
NEXT REPORT DATE: 2025-11-05
CASH FLOW  Begin Period Cash Flow 1.4 B
 Operating Cash Flow 314.2 M
 Capital Expenditures -68.20 M
 Change In Working Capital 37.9 M
 Dividends Paid -103.90 M
 Cash Flow Delta -201.90 M
 End Period Cash Flow 1.2 B
 
INCOME STATEMENT REVENUE
 Total Revenue 965.0 M
 Forward Revenue 545.5 M
COSTS
 Cost Of Revenue 564.0 M
 Depreciation 70.1 M
 Depreciation and Amortization 115.9 M
 Research and Development 199.4 M
 Total Operating Expenses 852.9 M
PROFITABILITY
 Gross Profit 401.0 M
 EBITDA 234.5 M
 EBIT 118.6 M
 Operating Income 112.1 M
 Interest Income
 Interest Expense 6.6 M
 Net Interest Income -6.60 M
 Income Before Tax 112.0 M
 Tax Provision 7.0 M
 Tax Rate 6.3 %
 Net Income 105.0 M
 Net Income From Continuing Operations 105.0 M
EARNINGS
 EPS Estimate 1.24
 EPS Actual 1.33
 EPS Difference 0.09
 EPS Surprise 7.258 %
 Forward EPS 1.60
 
BALANCE SHEET ASSETS
 Total Assets 7.7 B
 Intangible Assets 3.0 B
 Net Tangible Assets 2.6 B
 Total Current Assets 2.9 B
 Cash and Short-Term Investments 1.3 B
 Cash 1.2 B
 Net Receivables 396.2 M
 Inventory 706.5 M
 Long-Term Investments 77.2 M
LIABILITIES
 Accounts Payable 205.5 M
 Short-Term Debt 499.2 M
 Total Current Liabilities 1.2 B
 Net Debt
 Total Debt 1.2 B
 Total Liabilities 2.1 B
EQUITY
 Total Equity 5.7 B
 Retained Earnings 5.6 B
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share 38.09
 Shares Outstanding 148.400 M
 Revenue Per-Share 6.50
VALUATION
 Market Capitalization 10.7 B
 Enterprise Value 10.6 B
 Enterprise Multiple 45.129
Enterprise Multiple QoQ 1.702 %
Enterprise Multiple YoY -25.294 %
Enterprise Multiple IPRWA high: 209.03
mean: 58.329
median: 49.069
SWKS: 45.129
low: -326.325
 EV/R 10.967
CAPITAL STRUCTURE
 Asset To Equity 1.365
 Asset To Liability 3.741
 Debt To Capital 0.176
 Debt To Assets 0.157
Debt To Assets QoQ 2.067 %
Debt To Assets YoY 6450.628 %
Debt To Assets IPRWA high: 0.638
median: 0.206
mean: 0.194
SWKS: 0.157
low: 0.004
 Debt To Equity 0.214
Debt To Equity QoQ 4.935 %
Debt To Equity YoY 6770.74 %
Debt To Equity IPRWA high: 1.649
mean: 0.359
median: 0.318
SWKS: 0.214
low: -0.118
PRICE-BASED VALUATION
 Price To Book (P/B) 1.892
Price To Book QoQ 10.061 %
Price To Book YoY -27.312 %
Price To Book IPRWA high: 13.227
mean: 4.188
median: 2.914
SWKS: 1.892
low: -2.007
 Price To Earnings (P/E) 53.815
Price To Earnings QoQ 0.372 %
Price To Earnings YoY -36.939 %
Price To Earnings IPRWA high: 477.854
mean: 101.095
median: 91.639
SWKS: 53.815
low: -85.508
 PE/G Ratio 7.415
 Price To Sales (P/S) 11.081
Price To Sales QoQ 3.448 %
Price To Sales YoY -39.155 %
Price To Sales IPRWA high: 118.859
mean: 22.85
median: 16.194
SWKS: 11.081
low: 0.291
FORWARD MULTIPLES
Forward P/E 43.673
Forward PE/G 6.017
Forward P/S 19.6
EFFICIENCY OPERATIONAL
 Operating Leverage 6.954
ASSET & SALES
 Asset Turnover Ratio 0.124
Asset Turnover Ratio QoQ 5.24 %
Asset Turnover Ratio YoY 13.038 %
Asset Turnover Ratio IPRWA high: 0.362
mean: 0.136
SWKS: 0.124
median: 0.123
low: 0.003
 Receivables Turnover 2.513
Receivables Turnover Ratio QoQ 17.555 %
Receivables Turnover Ratio YoY 69.645 %
Receivables Turnover Ratio IPRWA high: 3.244
SWKS: 2.513
mean: 2.195
median: 2.051
low: 0.663
 Inventory Turnover 0.815
Inventory Turnover Ratio QoQ -0.065 %
Inventory Turnover Ratio YoY 24.749 %
Inventory Turnover Ratio IPRWA high: 1.313
SWKS: 0.815
mean: 0.688
median: 0.686
low: 0.159
 Days Sales Outstanding (DSO) 36.316
CASH CYCLE
 Cash Conversion Cycle Days (CCC) 116.436
Cash Conversion Cycle Days QoQ -1.534 %
Cash Conversion Cycle Days YoY -27.17 %
Cash Conversion Cycle Days IPRWA high: 421.858
median: 139.418
mean: 130.953
SWKS: 116.436
low: -168.954
CAPITAL DEPLOYMENT
 Cash Conversion Ratio 0.577
 CapEx To Revenue -0.071
 CapEx To Depreciation -0.973
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital 6.1 B
 Net Invested Capital 6.6 B
 Invested Capital 6.6 B
 Net Tangible Assets 2.6 B
 Net Working Capital 1.7 B
LIQUIDITY
 Cash Ratio 1.094
 Current Ratio 2.387
Current Ratio QoQ -51.779 %
Current Ratio YoY -58.517 %
Current Ratio IPRWA high: 10.851
mean: 3.259
median: 2.755
SWKS: 2.387
low: 0.359
 Quick Ratio 1.801
Quick Ratio QoQ -53.155 %
Quick Ratio YoY -58.05 %
Quick Ratio IPRWA high: 11.513
mean: 2.464
median: 1.962
SWKS: 1.801
low: 0.295
COVERAGE & LEVERAGE
 Debt To EBITDA 5.151
 Cost Of Debt 0.512 %
 Interest Coverage Ratio 17.97
Interest Coverage Ratio QoQ 11.899 %
Interest Coverage Ratio YoY -15.286 %
Interest Coverage Ratio IPRWA high: 106.184
median: 18.179
SWKS: 17.97
mean: 13.564
low: -86.97
 Operating Cash Flow Ratio 0.15
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO) 32.383
DIVIDENDS
 Dividend Coverage Ratio 1.011
 Dividend Payout Ratio 0.99
 Dividend Rate 0.70
 Dividend Yield 0.01
PERFORMANCE GROWTH
 Asset Growth Rate -2.17 %
 Revenue Growth 1.238 %
Revenue Growth QoQ -111.473 %
Revenue Growth YoY -109.217 %
Revenue Growth IPRWA high: 39.13 %
mean: 3.526 %
median: 1.591 %
SWKS: 1.238 %
low: -16.026 %
 Earnings Growth 7.258 %
Earnings Growth QoQ -132.258 %
Earnings Growth YoY -133.089 %
Earnings Growth IPRWA high: 122.222 %
median: 10.0 %
mean: 9.561 %
SWKS: 7.258 %
low: -120.0 %
MARGINS
 Gross Margin 41.554 %
Gross Margin QoQ 1.146 %
Gross Margin YoY 3.342 %
Gross Margin IPRWA high: 86.179 %
median: 55.075 %
mean: 47.311 %
SWKS: 41.554 %
low: -13.046 %
 EBIT Margin 12.29 %
EBIT Margin QoQ 7.28 %
EBIT Margin YoY -20.51 %
EBIT Margin IPRWA high: 61.973 %
median: 24.792 %
mean: 18.249 %
SWKS: 12.29 %
low: -152.931 %
 Return On Sales (ROS) 11.617 %
Return On Sales QoQ 1.405 %
Return On Sales YoY -24.863 %
Return On Sales IPRWA high: 61.973 %
median: 24.792 %
mean: 17.222 %
SWKS: 11.617 %
low: -152.931 %
CASH FLOW
 Free Cash Flow (FCF) 246.0 M
 Free Cash Flow Yield 2.301 %
Free Cash Flow Yield QoQ -35.329 %
Free Cash Flow Yield YoY 55.473 %
Free Cash Flow Yield IPRWA high: 2.561 %
SWKS: 2.301 %
median: 1.357 %
mean: -0.066 %
low: -14.288 %
 Free Cash Growth -32.287 %
Free Cash Growth QoQ -403.82 %
Free Cash Growth YoY 305.667 %
Free Cash Growth IPRWA high: 370.37 %
median: 10.052 %
mean: 9.796 %
SWKS: -32.287 %
low: -185.015 %
 Free Cash To Net Income 2.343
 Cash Flow Margin 18.736 %
 Cash Flow To Earnings 1.722
VALUE & RETURNS
 Economic Value Added 0.04
 Return On Assets (ROA) 1.346 %
Return On Assets QoQ 58.914 %
Return On Assets YoY -7.871 %
Return On Assets IPRWA high: 5.595 %
median: 2.489 %
mean: 2.373 %
SWKS: 1.346 %
low: -22.34 %
 Return On Capital Employed (ROCE) 1.822 %
 Return On Equity (ROE) 0.019
Return On Equity QoQ 60.588 %
Return On Equity YoY -2.621 %
Return On Equity IPRWA high: 0.098
mean: 0.042
median: 0.037
SWKS: 0.019
low: -0.221
 DuPont ROE 1.812 %
 Return On Invested Capital (ROIC) 1.673 %
Return On Invested Capital QoQ 58.278 %
Return On Invested Capital YoY -116.478 %
Return On Invested Capital IPRWA high: 19.024 %
mean: 3.166 %
median: 3.146 %
SWKS: 1.673 %
low: -13.453 %

Six-Week Outlook

Directional signals point to a choppy trading range with a downside bias. Strong ADX suggests moves can accelerate; DI+ and DI- collectively favor downside pressure while MACD and a negative MRO imply scope for counter-trend bounces. Price remaining above key moving averages supports the case for intermittent recovery attempts, but RSI peak-and-reverse and the DI configuration increase the probability of a corrective leg before any sustained upside. Liquidity and solid cash flow reduce tail-risk from a fundamental perspective, but elevated leverage versus EBITDA and high dividend payout concentrate sensitivity to revenue and margin slippage in the near term.

About Skyworks Solutions, Inc.

Skyworks Solutions, Inc. (NASDAQ:SWKS) develops and markets advanced semiconductor products, serving a broad spectrum of industries worldwide. Headquartered in Irvine, California, Skyworks crafts a diverse range of components including amplifiers, antenna tuners, and attenuators, among others. Their extensive product lineup also features automotive tuners, DC/DC converters, and wireless analog system on chip products, catering to the needs of various sectors such as aerospace, automotive, and broadband. Skyworks Solutions’ offerings extend to cellular infrastructure, connected home, and defense applications, as well as entertainment, gaming, industrial, medical, and military markets. Their semiconductors find integration into smartphones, tablets, and wearables, highlighting their versatility and widespread applicability. The company employs a direct sales force and collaborates with electronic component distributors and independent sales representatives to deliver its products globally, including markets in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and the broader Asia-Pacific region. Founded in 1962, Skyworks Solutions continues to innovate and support the evolving needs of its diverse clientele through its robust semiconductor solutions.



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