SkyWater Technology (SKYT) AI Stock Analysis

• Market Cap: $842.35M
• Dividend Yield: N/A
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.22
• Revenue Growth: -10.53%
• EPS Growth: 36.86%
• Country: US
• Employees: 702
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.11
• Shares Outstanding: 48,175,816
• 10 Day Avg. Volume: 1,738,991
• 30 Day Avg. Volume: 2,114,256
• PEG Ratio: 1.26
• Price to Book (P/B): 11.82
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 94.59
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 7.85
• Enterprise Value/Ebitda: 40.59
• 1Y Price Target: $16.40
• Price Target Upside: -6.18% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 56 Neutral
• Price Target: $17.50 ▲(0.11% Upside)

SkyWater Technology's overall stock score is driven by significant financial challenges and valuation concerns, despite positive technical indicators and strong earnings call highlights. The company's high leverage and ongoing profitability issues weigh heavily on the score, while the recent acquisition and growth prospects in quantum computing provide some optimism.

Positive Factors

Transformative Acquisition

The acquisition of Infineon's Fab 25 is expected to double SkyWater's revenue scale and adjusted EBITDA, significantly enhancing its market position and operational capacity.

Quantum Computing Expansion

SkyWater's focus on quantum computing positions it at the forefront of a rapidly growing sector, potentially driving substantial revenue growth and technological leadership.

Advanced Packaging Progress

The progress in advanced packaging enhances SkyWater's capabilities in high-demand areas, supporting long-term growth and competitive advantage in semiconductor manufacturing.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting SkyWater's ability to invest in growth opportunities and weather economic downturns.

Declining Revenue Growth

Declining revenue growth indicates challenges in maintaining market share and competitiveness, which could hinder long-term financial performance and strategic initiatives.

Profitability Issues

Ongoing profitability issues reflect operational challenges and may affect SkyWater's ability to generate sustainable earnings, impacting its long-term financial health.

SkyWater Technology Business Overview & Revenue Model

Company Description

SkyWater Technology (SKYT) is a leading semiconductor foundry based in the United States, specializing in advanced manufacturing processes for a range of applications including aerospace, automotive, industrial, and consumer electronics. The company focuses on providing a wide array of services, including research and development, prototyping, and production of integrated circuits and semiconductor devices. SkyWater is known for its commitment to innovation and quality, utilizing cutting-edge technology to meet the specific needs of its clients in various sectors.

How the Company Makes Money

SkyWater Technology generates revenue primarily through its semiconductor manufacturing services, which include contract manufacturing agreements with various clients across different industries. The company operates under a foundry model, where it charges customers for the fabrication of their semiconductor designs. Key revenue streams include fees for wafer fabrication, engineering services, and product development support. Additionally, SkyWater has established significant partnerships with government entities and private companies that enhance its capabilities and market reach, contributing to its earnings. The focus on specialized manufacturing processes, including those for defense and high-reliability applications, allows the company to command premium pricing and secure long-term contracts, further bolstering its financial performance.

SkyWater Technology Financial Statement Overview

Summary

SkyWater Technology faces significant financial challenges, with declining revenue and profitability, high leverage, and mixed cash flow performance. While there are some operational improvements, the company needs to address its high debt levels and improve profitability to enhance its financial health.

Income Statement

SkyWater Technology's income statement reveals challenges in profitability, with negative net profit margins and declining revenue growth in the TTM period. The gross profit margin has improved over the years, indicating some operational efficiency. However, the negative EBIT and net income margins highlight ongoing profitability issues.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, particularly in the TTM period, indicating significant leverage and potential financial risk. The negative return on equity suggests that the company is not generating sufficient returns on its equity base. The equity ratio is low, reflecting a higher reliance on debt financing.

Cash Flow

Cash flow analysis indicates a decrease in free cash flow growth in the TTM period, although the operating cash flow remains positive. The operating cash flow to net income ratio is below 1, suggesting that cash generation is not fully covering net losses. However, the free cash flow to net income ratio is relatively healthy, indicating some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2020	Dec 2019	Dec 2018
Income Statement
Total Revenue	289.66M	342.27M	286.68M	140.44M	136.72M	132.17M
Gross Profit	64.69M	69.63M	59.29M	22.69M	25.35M	31.34M
EBITDA	12.51M	25.25M	14.14M	9.57M	3.23M	28.97M
Net Income	-16.49M	-6.79M	-30.76M	-19.71M	-16.42M	-65.00K
Balance Sheet
Total Assets	581.96M	313.77M	316.76M	263.21M	190.44M	148.27M
Cash, Cash Equivalents and Short-Term Investments	56.37M	18.84M	18.38M	7.44M	4.61M	498.00K
Total Debt	351.46M	76.76M	72.86M	72.60M	47.99M	35.85M
Total Liabilities	351.46M	250.28M	256.06M	264.79M	166.27M	109.67M
Stockholders Equity	45.24M	57.61M	53.74M	-16.00K	24.17M	38.60M
Cash Flow
Free Cash Flow	43.28M	7.20M	-408.00K	6.34M	1.96M	7.04M
Operating Cash Flow	67.34M	18.46M	10.08M	96.19M	10.92M	12.59M
Investing Cash Flow	-26.76M	-11.21M	-10.49M	-88.18M	-7.37M	-4.28M
Financing Cash Flow	-9.57M	-6.79M	-11.23M	-5.19M	552.00K	-7.82M

SkyWater Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYT, the sentiment is Positive. The current price of 17.48 is above the 20-day moving average (MA) of 17.36, above the 50-day MA of 15.00, and above the 200-day MA of 10.58, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 68.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKYT.

SkyWater Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IMOS	―	$757.45M	158.80	0.66%	3.88%	0.15%	-92.08%
COHU	―	$1.11B	-15.18	-8.53%	―	-4.50%	-45.79%
INDI	―	$1.16B	―	-36.20%	―	-7.49%	-64.33%
SKYT	―	$842.35M	―	-34.11%	―	-10.53%	36.86%
AOSL	―	$843.01M	―	-11.32%	―	5.92%	-746.07%
ICHR	―	$778.54M	―	-2.98%	―	15.45%	49.82%

SkyWater Technology Corporate Events

SkyWater Technology’s Optimistic Earnings Call Highlights Growth

SkyWater Technology Inc. recently held its earnings call, revealing a generally optimistic outlook despite some challenges. The company reported strong revenue achievements and strategic advancements, particularly in the quantum computing sector and the successful acquisition of Fab 25. However, it acknowledged challenges in the aerospace and defense sector due to government funding delays and anticipated short-term gross margin compression due to the acquisition. Overall, the positive developments significantly outweigh the negatives.

SkyWater Technology’s Strategic Moves and Q2 2025 Results

SkyWater Technology, Inc., a U.S.-based semiconductor manufacturer, is recognized for its Technology as a Service model, which facilitates the production of innovative technologies across various sectors including aerospace, defense, and quantum computing. In its latest earnings report for the second quarter of 2025, SkyWater Technology announced financial results that met the upper end of their expectations, alongside the completion of its acquisition of Infineon’s U.S. fab, Fab 25, in Austin, Texas. This acquisition is expected to significantly boost the company’s revenue and cash flow starting in the third quarter, with Fab 25 projected to contribute at least $300 million annually.