SWKS Stock Analysis — Skyworks Solutions
Sector: Semiconductors
AI Verdict
Skyworks trades at 13.2x next year’s earnings with 110.9% EPS growth expected — that’s cheap for the growth on offer if its OEM relationships and RF chip moat hold up, but the bet hinges on a sharp earnings rebound materializing.
Competitive Moat
Skyworks Solutions designs and manufactures analog and mixed-signal semiconductors, especially RF chips critical to wireless connectivity in smartphones and IoT devices. Its moat comes from deep integration with major OEMs and high switching costs for customers reliant on Skyworks' custom RF front-end modules.
Summary
Skyworks is notable for its expected 110.9% forward EPS growth despite a -2.2% revenue decline last year.
Where It Stands
With a 1-year return of -2.10%, an RSI of 61.2 (neutral), and a forward P/E of 13.2x versus the sector median of 25x, the stock is priced well below typical semiconductor peers.
Key Metrics
- RSI: 61.2 — Near Overbought
- Trailing P/E: 27.8x
- Forward P/E: 13.2x
- PEG Ratio: 0.25
- Earnings Growth: +1.1%
- Revenue Growth: -0.0%
- Market Cap: $10.0B
- Dividend Yield: 0.04%
- 1-Year Return: -2.10%
- 52-Week High: $90.90
- 52-Week Low: $51.93
Analyst Consensus
11 Buy · 20 Hold · 2 Sell (33 analysts)
Bull Case
Analysts expect earnings to more than double (+110.9%) next year while you pay just 13.2x forward earnings, making it cheap for the growth expected.
Bear Case
If the P/E reverts to the sector median of 25x after earnings normalize, the upside is capped unless revenue growth turns positive from its recent -2.2%.
Catalyst to Watch
Watch for design wins in upcoming flagship smartphones or a rebound in IoT demand, as either could validate the aggressive earnings growth forecast.