Skyworks Solutions, Inc. (SWKS) stock analysis

P/E above its 5-year median

Skyworks Solutions's P/E of 78.9 is above its own 5-year median of 18.4.

P/E above the industry

Skyworks Solutions's P/E of 78.9 is above the Electronic Components and Accessories median of 34.1.

EV/EBITDA above its 5-year median

Skyworks Solutions's EV/EBITDA of 50.4 is above its 5-year median of 15.4.

P/B below the industry

Skyworks Solutions's price-to-book of 2.37 is below the Electronic Components and Accessories median of 3.21.

Trading above fair value

The share price of $89.94 is above our fair value estimate of $46.61.

Margin of safety under 20%

The price is 93.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -6.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -42.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -63.9% over the last twelve months, against a 5-year average of -35.1% a year.

Growing slower than the industry

Revenue grew -3.1% over the last twelve months; the Electronic Components and Accessories median is 17.6%.

Guidance issued

The latest outlook (December quarter revenue, Nov 3, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 40.8% over the last twelve months, against 41.2% a year earlier.

Return on equity under 15%

Return on equity was 3.0% over the last twelve months and averaged 12.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 4.4%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Skyworks Solutions's return on equity of 3.0% is below the Electronic Components and Accessories median of 5.0%.

Earnings shrank over 5 years

Net income shrank 35.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 4.3% over the last twelve months, against a 5-year average of 14.8%.

Net margin above the industry

Skyworks Solutions's net margin of 4.3% is above the Electronic Components and Accessories median of 3.0%.

No debt

Skyworks Solutions has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

Operating income covers interest expense 5.2 times.

Short-term assets cover short-term debts

Current assets are 5.01 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.97; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Skyworks Solutions paid dividends worth 2.4% of the share price over the last twelve months.

Yield below Treasuries

The 2.4% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Skyworks Solutions yields 2.4%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Not covered by earnings

Dividends take 186% of net income, leaving little room.

Not covered by free cash flow

Dividends take 140% of free cash flow.