Skyworks Solutions Inc. (NASDAQ: SWKS) stock price has lost 40% from $153 at 2020 end, to around $91 currently, primarily due to unfavorable changes in its P/S multiple. The company, in fact, witnessed a rise in sales and a drop in its outstanding share count over this period, but still failed to outperform the S&P, which returned just around 2% over this period.
In our interactive dashboard, Why Skyworks Solutions Stock Moved: SWKS Stock Has Lost 40% Since 2020, we break down the factors behind this move.
(A) Skyworks’ Total Revenue has grown 42% from $3.4 billion in FY 2020 to $5.1 billion currently
- Skyworks’ total revenue has risen strongly from $3.4 billion in FY ’20 to $5.1 billion in FY ’21 (Skyworks’ fiscal year ends in September), and currently stands at around the same level.
- As of FY ’21, 63% of Skyworks’ sales come from the United States, where the company sold $3.23 billion worth of its products.
- Taiwan and China came in second, bringing in around 27% of the company’s sales.
- As of FY ’21, the company operates across only one business segment, manufacturing semiconductors for use in radio frequency and mobile communications systems.
- For details about Skyworks Solutions revenues and comparison to peers, see Skyworks Solutions (SWKS) Revenue Comparison
(B) Revenue per share (RPS) increased 55% from $19.93 in FY ’20 to $30.93 currently
- SWKS revenue rose from $3.4 billion in FY ’20 to $5.1 billion currently, while the outstanding share count decreased from 168.3 million in FY ’20 to 163.5 million currently.
- Due to this, RPS has risen from $19.93 in FY ’20 to $30.93 currently.
(C) Price-To-Sales (P/S) multiple for Skyworks Solutions dropped from 7.3x in 2020-end to 4.9x by 2021-end and has further pulled back to 2.9x currently, much lower than its 2020 level
- Despite Skyworks’ stellar performance since FY ’20, its P/S multiple has dropped around 60% from 7.3x in 2020 to 2.9x currently.
- For additional details about the company stock returns and comparison to peers, see Skyworks Solutions (SWKS) Stock Return Comparison.
|S&P 500 Return||1%||-20%||71%|
|Trefis Multi-Strategy Portfolio||3%||-25%||200%|
 Month-to-date and year-to-date as of 7/4/2022
 Cumulative total returns since the end of 2016