Important note

This AI stock analysis for Skyworks Solutions is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Skyworks Solutions - AI Stock Analysis

Analysis generated October 1, 2024

Skyworks Solutions Inc. (NASDAQ: SWKS) is a semiconductor company that designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property. The company's products are used primarily in mobile communications applications, which significantly benefit industries like smartphones, tablets, and wireless infrastructure. Skyworks Solutions consistently aims to transition to a more diversified product portfolio, including expanding into automotive, home automation, and IoT applications.

Fundamental Analysis

Analyzing the financial health and performance of Skyworks Solutions in the last quarter, the revenue was $906M. This figure represents a decrease of 13.43% compared to the previous quarter and a decrease of 15.47% compared to the same quarter last year. This significant decrease in revenue may indicate weakening demand or increased competition.

The company's net income for the last quarter was $121M, reflecting a substantial decrease of 34.04% from the prior quarter and 38.25% from the same quarter in the previous year. This drop suggests challenges in maintaining profitability amidst declining revenue.

EBITDA for the last quarter stood at $186M, down 24.24% from the prior quarter and 35.77% year-over-year. This trend confirms that the company faces difficulties managing its operational efficiency.

The current Price-to-Earnings (P/E) ratio of 20.41 falls within a typical range for the industry, neither exceptionally high nor low. While this provides some reassurance, the considerable insider selling of company stock recently could be interpreted as a bearish indicator, suggesting that internal personnel may lack confidence in immediate future growth.

Technical Analysis

Currently, Skyworks Solutions' stock price stands at $98.77, which is a decrease of 9.87% compared to a month ago, pointing to short-term concerns. However, compared to a year ago, the stock has seen a 3.33% increase, hinting at a positive long-term trend. The bullish trend aligns with the current Simple Moving Average (SMA10) of $98.59, which is slightly higher than the previous SMA10 of $98.49, indicating potential upward momentum in the stock price.

Additionally, the Relative Strength Index (RSI) is 37, an indicator relatively neutral. While not in the overbought or oversold territory, it suggests careful monitoring for potential movements either way.

Alternative Data Analysis

Examining alternative data sources, Skyworks Solutions currently has 455 open job positions, a 29% increase over the last couple of months. This growth in job postings could be an encouraging sign of the company looking to expand its capabilities and market reach, reflecting a potentially healthy business outlook.

Employee sentiment about the business outlook at Skyworks Solutions remains neutral, indicating neither strong optimism nor significant concerns among the workforce. Customer acquisition metrics show an estimated 160,000 webpage visitors, with numbers remaining stable over recent months, and their Twitter following is stable at 3,000 followers.

According to AltIndex’s AI score, Skyworks Solutions has a 58, which classifies as a hold signal, balancing the various fundamental, technical, and alternative data inputs.

Conclusion and Recommendation

In conclusion, Skyworks Solutions presents a mixed bag of indicators. While the fundamental analysis points to declining revenues and profitability, technical indicators show potential for upward price movements. The alternative data sources suggest ongoing efforts for company expansion, although employee sentiment is neutral and customer engagement remains steady.

Given this comprehensive analysis and the current AI score of 58, a hold recommendation seems appropriate at this time. Investors should closely monitor upcoming quarters for signs of recovery in financial performance and pay attention to any shifts in market conditions or company strategy that may impact future growth prospects.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.