SWKS Stock Analysis — Skyworks Solutions
Sector: Semiconductors
AI Verdict
Skyworks trades at 12.7x next year’s earnings with sky-high growth expectations, so you’re getting a cheap price if the RF chip moat delivers, but there’s real risk if those numbers don’t materialize.
Competitive Moat
Skyworks Solutions designs and manufactures analog and mixed-signal semiconductors, with a defensible position in radio frequency (RF) chips for mobile devices and IoT hardware. Its moat comes from deep integration in customer supply chains and proprietary RF front-end modules that are hard to replace in high-volume devices.
Summary
Skyworks is on watch because analysts expect a dramatic 188.2% jump in earnings next year, slashing its forward P/E to 12.7x.
Where It Stands
Despite a -0.65% one-year return and an RSI of 66.5 (elevated, with pullback risk), Skyworks trades at 12.7x forward earnings—half the 25x sector median for semis—on the back of huge expected EPS growth.
Key Metrics
- RSI: 66.5 — Near Overbought
- Trailing P/E: 36.6x
- Forward P/E: 12.7x
- PEG Ratio: 0.19
- Earnings Growth: +1.9%
- Revenue Growth: +0.0%
- Market Cap: $10.6B
- Dividend Yield: 0.03%
- 1-Year Return: -0.65%
- 52-Week High: $90.90
- 52-Week Low: $51.93
Analyst Consensus
3 Buy · 21 Hold · 6 Sell (30 analysts)
Bull Case
The 188.2% forward EPS growth rate means you’re paying just 12.7x next year’s earnings for a company that could triple profits, which is cheap if those estimates hold.
Bear Case
With an RSI of 66.5 and a trailing P/E of 36.6x (well above the sector’s 25x), any disappointment in earnings could trigger a sharp pullback as the stock rerates to lower multiples.
Catalyst to Watch
Watch for the next quarterly earnings report—if Skyworks delivers on the triple-digit EPS growth, the low forward multiple could quickly look like a bargain.