Skyworks Solutions (SWKS): Exploring Valuation After a Steep Share Price Pullback

Skyworks Solutions (SWKS) has been grinding through a tough stretch, with the stock down sharply over the past year even as revenue and net income still managed to grow modestly.

See our latest analysis for Skyworks Solutions.

That weak year to date share price return of around negative 27 percent and a roughly negative 26 percent total shareholder return over the past year suggest sentiment has cooled, even as modest growth keeps longer term recovery potential on the table.

If Skyworks has you rethinking your chip exposure, it could be worth scanning other high growth tech names via high growth tech and AI stocks for fresh opportunities.

With shares trading at a steep discount to analyst targets despite positive revenue and earnings growth, is Skyworks an overlooked value in the chip space, or is the market correctly pricing in a slower growth runway?

Most Popular Narrative: 22.9% Undervalued

With Skyworks last closing at $64.51 versus a narrative fair value near the mid $80s, the story leans toward a sizable valuation gap with clear operating levers behind it.

Ongoing optimization of the manufacturing footprint (notably the Woburn facility closure and consolidation into Newbury Park) is expected to improve fab utilization, lower fixed costs, and expand gross margins over time, bolstering net income and free cash flow.

Read the complete narrative.

Curious how modest top line growth, rising margins, and a leaner share count can still justify a richer future earnings multiple? Unpack the full playbook driving this valuation setup.

Result: Fair Value of $83.63 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, concentration in Apple driven mobile demand and intense RF pricing pressure could derail margin expansion and keep Skyworks trading at a discount.

Find out about the key risks to this Skyworks Solutions narrative.

Build Your Own Skyworks Solutions Narrative

If this perspective does not fully match your own view or you prefer hands on analysis, you can build a personalized narrative in just minutes, Do it your way.

A great starting point for your Skyworks Solutions research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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