NASDAQ · Technology

Skyworks Solutions, Inc.

SWKS · Semiconductors

$72.45

▲ 3.07 (4.42%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

D⤢

Gross Profit Margin 40.8%

Operating Margin 5.6%

Net Income Margin 3.8%

Fin. Health

B⤢

Years to Pay Off Debt 33.4 yrs

Working Capital vs Long-Term Debt $1.3B

Working Capital $1.8B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.89x

Cash Flow

F⤢

Free Cash Flow -$38M

CapEx % of Net Income 246.6%

Owner Earnings $236M

Profitability

Gross Profit Margin 40.8%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 5.6%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 3.8%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 33.4 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt $1.3B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $1.8B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow -$38M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 246.6%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $236M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Skyworks Solutions, Inc.

Skyworks Solutions, Inc., together with its subsidiaries, develops, manufactures, and markets analog and mixed-signal semiconductor products and solutions in the United States, Taiwan, China, South Korea, Europe, the Middle East, Africa, and the Asia Pacific. The company offers amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, wireless ASoC, DC/DC converters, demodulators, detectors, digital power isolators, diodes, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, and optocouplers/optoisolators. It also provides phase locked loops, phase shifters, power dividers/combiners, power over ethernet, power isolators, ProSLIC family of subscriber line interface circuits, receivers, system in package, switches, synthesizers, timing devices, voltage-controlled oscillators/synthesizers, and voltage regulators. The company sells its products through direct sales force, electronic component distributors, and independent sales representatives. Its products are used in aerospace, automotive, broadband, cellular infrastructure, connected home, defense, entertainment and gaming, industrial, medical, smartphone, tablet, and wearables applications. The company was founded in 1962 and is headquartered in Irvine, California.

Market Data

Market Cap $10.9B

Enterprise Value $10.5B

P/E (TTM) 30.19

Dividend Yield 4.08%

Exchange NASDAQ

Key Margins

Gross Profit 40.8%

Operating Margin 5.6%

Net Margin 3.8%

Company Info

Sector Technology

Industry Semiconductors

Employees 10000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Skyworks Solutions, Inc. at $72.45.

The business passes only 2 of 7 of Graham's defensive criteria — well below his required standard.

At $72.45, the stock trades at a 403% premium to its Graham Number of $14.39. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Trading at 10.9x NCAV. Expected for most quality businesses — NCAV was designed to find depression-era bargains and rarely applies to modern profitable companies..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	40.8%▼	41.3%•	N/A
Operating Margin %	5.6%▼	11.1%•	N/A
Net Income %	3.8%▼	7.6%•	N/A
Diluted EPS	0.24▼	0.53•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025
Total Assets	$7.9B	$7.9B
Total Debt	$1.2B▼	$1.2B
Working Capital	$1.8B▲	$1.8B
Years to Pay Debt	33.42	15.06

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	-$38M▼	$325M•	N/A
Owner Earnings	$236M	$267M	N/A
CapEx % of Net Income	246.6%	89.3%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-2,354	-3,169
Tax Rate For Calcs	0	0
Normalized EBITDA	176,200	244,800
Total Unusual Items	-10,900	-11,400
Total Unusual Items Excluding Goodwill	-10,900	-11,400
Net Income From Continuing Operation Net Minority Interest	35,600	79,200
Reconciled Depreciation	112,400	117,400
Reconciled Cost Of Revenue	446,200	491,000
EBITDA	165,300	233,400
EBIT	52,900	116,000
Net Interest Income	-7,500	-6,300
Interest Expense	7,500	6,300
Normalized Income	44,146	87,431
Net Income From Continuing And Discontinued Operation	35,600	79,200
Total Expenses	890,700	920,200
Total Operating Income As Reported	42,100	103,800
Diluted Average Shares	150,600	150,500
Basic Average Shares	150,300	149,500
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	35,600	79,200
Net Income Common Stockholders	35,600	79,200
Net Income	35,600	79,200
Net Income Including Noncontrolling Interests	35,600	79,200
Net Income Continuous Operations	35,600	79,200
Tax Provision	9,800	30,500
Pretax Income	45,400	109,700
Other Income Expense	-100	800
Other Non Operating Income Expenses	10,800	12,200
Special Income Charges	-10,900	-11,400
Restructuring And Mergern Acquisition			1,600
Net Non Operating Interest Income Expense	-7,500	-6,300
Interest Expense Non Operating	7,500	6,300
Operating Income	53,000	115,200
Operating Expense	332,300	312,000
Depreciation Amortization Depletion Income Statement	200	200
Depreciation And Amortization In Income Statement	200	200
Amortization	200	200
Amortization Of Intangibles Income Statement	200	200
Research And Development	212,400	203,400
Selling General And Administration	119,700	108,400
Gross Profit	385,300	427,200
Cost Of Revenue	558,400	608,200
Total Revenue	943,700	1,035,400
Operating Revenue	943,700	1,035,400

Balance Sheet

	2026	2025
Ordinary Shares Number	150,374	149,930
Share Issued	150,374	149,930
Total Debt	1,189,600	1,192,900
Tangible Book Value	2,867,300	2,817,700
Invested Capital	6,762,200	6,755,100
Working Capital	1,809,900	1,808,000
Net Tangible Assets	2,867,300	2,817,700
Capital Lease Obligations	193,000	196,700
Common Stock Equity	5,765,600	5,758,900
Total Capitalization	6,262,300	6,255,500
Total Equity Gross Minority Interest	5,765,700	5,758,900
Stockholders Equity	5,765,600	5,758,900
Gains Losses Not Affecting Retained Earnings	-5,400	-5,400
Other Equity Adjustments	-5,400	-5,400
Retained Earnings	5,558,500	5,629,700
Additional Paid In Capital	175,000	97,100
Capital Stock	37,500	37,500
Common Stock	37,500	37,500
Total Liabilities Net Minority Interest	2,130,300	2,109,000
Total Non Current Liabilities Net Minority Interest	814,600	814,000
Other Non Current Liabilities	63,800	68,800
Tradeand Other Payables Non Current	97,600	90,300
Long Term Debt And Capital Lease Obligation	653,200	654,900
Long Term Capital Lease Obligation	156,500	158,300
Long Term Debt	496,700	496,600
Current Liabilities	1,315,700	1,295,000
Other Current Liabilities	106,900	92,800
Current Debt And Capital Lease Obligation	536,400	538,000
Current Capital Lease Obligation	36,500	38,400
Current Debt	499,900	499,600
Other Current Borrowings	499,900	499,600
Pensionand Other Post Retirement Benefit Plans Current	138,200	128,500
Payables And Accrued Expenses	534,200	535,700
Current Accrued Expenses	200,400	231,500
Payables	333,800	304,200
Total Tax Payable	67,600	94,900
Accounts Payable	266,200	209,300
Total Assets	7,896,000	7,867,900
Total Non Current Assets	4,770,400	4,764,900
Other Non Current Assets	101,600	74,500
Non Current Deferred Assets	385,900	375,600
Non Current Deferred Taxes Assets	385,900	375,600
Investments And Advances	14,600	9,900
Investmentin Financial Assets	14,600	9,900
Available For Sale Securities	14,600	9,900
Goodwill And Other Intangible Assets	2,898,300	2,941,200
Other Intangible Assets	721,600	764,500
Goodwill	2,176,700	2,176,700
Net PPE	1,370,000	1,363,700
Accumulated Depreciation	-3,217,400	-3,175,600
Gross PPE	4,587,400	4,539,300
Construction In Progress	118,800	100,100
Other Properties	182,200	184,700
Machinery Furniture Equipment	3,616,500	3,590,800
Buildings And Improvements	658,000	651,800
Land And Improvements	11,900	11,900
Current Assets	3,125,600	3,103,000
Other Current Assets	247,800	167,900
Prepaid Assets	234,400	210,500
Inventory	885,600	767,500
Finished Goods	270,700	205,300
Work In Process	554,500	512,400
Raw Materials	60,400	49,800
Receivables	336,000	398,400
Accounts Receivable	336,000	398,400
Allowance For Doubtful Accounts Receivable	-900	-900
Gross Accounts Receivable	336,900	399,300
Cash Cash Equivalents And Short Term Investments	1,421,800	1,558,700
Other Short Term Investments	8,500	8,300
Cash And Cash Equivalents	1,413,300	1,550,400

Cash Flow

	2026	2025	2024
Free Cash Flow	-37,500	324,800
Repurchase Of Capital Stock	-8,500	-39,000
Capital Expenditure	-87,800	-70,700
Interest Paid Supplemental Data	300	12,000
Income Tax Paid Supplemental Data	85,200	10,100
End Cash Position	1,413,300	1,550,400
Beginning Cash Position	1,550,400	1,161,300
Changes In Cash	-137,100	389,100
Financing Cash Flow	-95,200	-145,400
Cash Flow From Continuing Financing Activities	-95,200	-145,400
Proceeds From Stock Option Exercised			0
Cash Dividends Paid	-106,800	-106,400
Common Stock Dividend Paid	-106,800	-106,400
Net Common Stock Issuance	-8,500	-39,000
Common Stock Payments	-8,500	-39,000
Investing Cash Flow	-92,200	139,000
Cash Flow From Continuing Investing Activities	-92,200	139,000
Net Other Investing Changes	500	100
Net Investment Purchase And Sale	-4,900	209,600
Sale Of Investment	12,000	220,400
Purchase Of Investment	-16,900	-10,800
Net Intangibles Purchase And Sale	-5,400	-14,200
Purchase Of Intangibles	-5,400	-14,200
Capital Expenditure Reported	-82,400	-56,500
Operating Cash Flow	50,300	395,500
Cash Flow From Continuing Operating Activities	50,800	395,000
Change In Working Capital	-146,100	141,200
Change In Other Working Capital	-156,300	-8,900
Change In Payables And Accrued Expense	60,600	-27,700
Change In Payable	60,600	-27,700
Change In Account Payable	60,600	-27,700
Change In Inventory	-112,800	-21,900
Change In Receivables	62,400	199,700
Other Non Cash Items	600	-100
Stock Based Compensation	58,000	57,700
Asset Impairment Charge			0
Deferred Tax	-10,200	100
Deferred Income Tax	-10,200	100
Depreciation Amortization Depletion	112,400	117,400
Depreciation And Amortization	112,400	117,400
Amortization Cash Flow	43,000	44,500
Amortization Of Intangibles	43,000	44,500
Depreciation	69,400	72,900
Net Income From Continuing Operations	35,600	79,200

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $953M ▼ $944M -1.0%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 41.1% ▼ 40.8% -0.3pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 5.6% ▼ 5.6% +0.1pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 7.2% ▼ 3.8% -3.4pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$944M/qtr (≈$3.8B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

2.38x current ratio

vs ≥ 2.0x

❌ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

-$38M

vs Positive

Operating Cash Flow

$50M

Latest quarter · Buffett's cash reality check

ROIC

0.6%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

1.9x

Net Assets: $5.8B

Asset Context — Semiconductors

This company's primary assets are likely intangible (brand, IP, talent, network effects) and don't appear on the balance sheet. Net Assets may significantly understate intrinsic value. ROIC and free cash flow are more reliable indicators of business quality.

Peers & Industry Comparison

Semiconductors — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
SWKS	$72.45	$10.9B	30.19	40.8%	3.8%	$944M
NVDA NVIDIA Corporation	$210.69	$5,103.1B	32.3	74.1%	63.0%	$253.5B
AMD Advanced Micro Devices, Inc.	$537.37	$876.2B	179.7	53.1%	13.4%	$37.5B
INTC Intel Corporation	$133.99	$673.4B	N/A	37.2%	-5.9%	$53.8B
QCOM QUALCOMM Incorporated	$226.11	$238.3B	24.3	54.8%	22.3%	$44.5B
AVGO Broadcom Inc.	$411.35	$1,957.0B	68.2	76.3%	38.8%	$75.5B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.43%

Low — management has little skin in the game

Return on Equity (ROE)

0.6%

Weak — poor returns on equity

Return on Assets (ROA)

0.5%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$875M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-0.3% YoY

Debt is declining — management is deleveraging

Leadership Team

Philip Gordon Brace

CEO, President & Director

Age 54

Pay: $2,267,283

6.369% of net income

Philip Matthew Carter

Senior VP, CFO and Principal Financial & Accounting Officer

Age 46

Pay: $1,428,727

4.013% of net income

Karilee Durham

Senior Vice President of Human Resources

Age 56

Pay: $1,125,868

3.163% of net income

Rajvindra Gill

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	14.26%	21,440,852
Pzena Investment Management LLC	10.71%	16,108,138
Vanguard Portfolio Management LLC	6.72%	10,113,481
Vanguard Capital Management LLC	6.50%	9,776,475
State Street Corporation	5.61%	8,438,458
Invesco Ltd.	4.19%	6,295,434
Geode Capital Management, LLC	3.88%	5,835,936
FIL LTD	3.46%	5,205,445

⚠️ Short interest exceeds 20% — heavy bearish bets

Risk Analysis

Beta (Market Risk)

1.48

Moderate volatility — moves slightly more than market

Short Interest

29.6% of float

Heavy short selling — market has significant bearish bets

Debt-to-Equity

0.21x

Conservative balance sheet — low financial risk

Current Ratio

2.38x

Strong liquidity — Graham approved

52-Week Price Range

Low: $51.93 Current: $72.45 High: $90.90

Currently at 53% of 52-week range

Skyworks Solutions, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis