Skyworks Solutions (SWKS)
Key Statistics
EV/EBIT = 21.9x
ROE = 9.6%
Debt/Equity = 19%
FCF Yield = 12.2%
Dividend Yield = 3%
Market Cap = $14.97 billion
The Company
Skyworks Solutions (SWKS) specializes in designing semiconductors focused on RF (radio frequency) technology, a critical component of wireless connectivity. They specialize in advanced technologies like 5G, Wi-Fi, GPS, and Bluetooth to support wireless connectivity and expand into high-growth markets like electric vehicles, smart homes, and data centers
As a leading supplier of RF components for smartphones and other electronics, the company has greatly benefited from the growing demand driven by 5G adoption.
Skyworks is well known for its advanced amplifiers, converters, and antenna systems that power increasingly complex 5G devices. With the capability to produce millions of RF products annually, it maintains a competitive edge and serves as a crucial supplier to Apple.
Geographically, the United States is Skyworks' largest market, contributing 77% of the company’s total revenue.
A substantial portion of Skyworks' revenue is heavily reliant on a small number of OEMs, with Apple alone contributing over 65% of the company’s revenue in recent years, far surpassing other major clients like Samsung and Huawei. This close dependency makes Skyworks’ performance closely tied to Apple’s success and the continuation of their partnership.