Could Cash Machine Skyworks Solutions Stock Be Your Next Buy?
Skyworks Solutions (SWKS) could be an interesting pick for your portfolio, with its high cash yield, good fundamentals, and discounted valuation
Skyworks Solutions is actively diversifying, evidenced by its Q4 fiscal 2025 revenue of $1.1 billion, where mobile grew 7% year-over-year but faces a projected low-to-mid teens sequential decline in Q1 FY2026. A pivotal move, the announced $22 billion merger with Qorvo on October 28, 2025, fundamentally reshapes its structural growth. This strategic consolidation boosts exposure to high-growth areas like AI data centers and automotive, where the automotive business segment achieved a record $65 million quarterly run rate.
Let’s talk numbers:
- Cash Yield: Not many stocks offer free cash flow yield of 10.4%, but Skyworks Solutions stock does
- Fundamentals: Last 12 month revenue growth of -2.2% and operating margin of 12.8% show reasonable fundamentals
- Valuation: SWKS stock currently trading at 40% below 2Y high, 13% below 1M high, and at a PS lower than 3Y average.
Free Cash Flow Yield refers to free cash flow per share / stock price. Why it matters? If a company produces high amount of cash per share, it can be used to fuel additional revenue growth, or simply paid through dividends or buybacks to shareholders. For quick background, Skyworks Solutions provides proprietary semiconductor products for aerospace, automotive, broadband, cellular, connected home, entertainment, industrial, medical, military, and wearable technology markets.
Individual stocks can soar or tank but one thing matters: staying invested. High Quality Portfolio helps you do that.
| SWKS | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Semiconductors | – |
| Free Cash Flow Yield | 10.4% | 4.2% |
| Revenue Growth LTM | -2.2% | 6.0% |
| Revenue Growth 3YAVG | -9.2% | 5.5% |
| Operating Margin LTM | 12.8% | 18.8% |
| Operating Margin 3YAVG | 18.6% | 18.2% |
| LTM Operating Margin Change | -4.4% | 0.2% |
| PE Ratio | 21.7 | 23.6 |
But do these numbers tell the full story? Read Buy or Sell SWKS Stock to see if Skyworks Solutions still has an edge that holds up under the hood.
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
The Point? The Market Can Notice, And Reward
The below statistics are from high FCF yield selection strategy between 12/31/2016 and 6/30/2025. The stats are calculated based on selections made monthly, and assuming that a stock once picked, can not be re-picked for next 180 days.
- Average 6-month and 12-month forward returns of 10.4% and 20.4% respectively
- Win rate (percentage of picks returning positive) of about 74% for 12-month period
- Not over dependent on market crashes. During non-crash periods as well, this strategy has 12-month average return of nearly 18% with 70% win rate.
But Consider The Risk
That said, Skyworks Solutions (SWKS) isn’t immune to big sell-offs. It plunged over 81% in the Dot-Com crash and took a 66% hit in the Global Financial Crisis. The inflation shock hit it nearly 60%. Even the more recent dips in 2018 and during the Covid pandemic dragged it down around 47%. Good fundamentals don’t mean bulletproof protection when markets turn sour.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read SWKS Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.