Skyworks Solutions Outlook - A Weak Technical Signal Amid Mixed Analyst Sentiment

Market Snapshot

Headline Takeaway: Skyworks Solutions (SWKS) is showing a weak technical signal with a score of 2.06, suggesting caution for investors. The price has recently fallen by 0.81%, aligning with a generally bearish market sentiment.

News Highlights

• US Semiconductors ETF Outflow: The US Semiconductors ETF (SOXX) experienced a net outflow of $750 million in May 2025, reflecting investor anxiety over the sector's future and possibly impacting Skyworks' performance as a major player in the industry.
• Japan-U.S. Cooperation on Semiconductors: Japan is reportedly considering proposals for closer cooperation with the U.S. on rare earths and semiconductors, which could indirectly benefit Skyworks by stabilizing supply chains and reducing reliance on China.
• NVIDIA Industry Comparisons: Several recent articles have highlighted comparisons of NVIDIA with its competitors in the semiconductor space. While Skyworks isn't directly mentioned, the broader sector's competitive dynamics suggest increased pressure for performance and innovation.

Analyst Views & Fundamentals

Average Rating Score (Simple Mean): 2.33. This is a low score, indicating a generally bearish outlook from analysts.

Weighted Rating Score (Performance-Weighted): 1.17. When adjusted for past performance, the sentiment is even more pessimistic.

Rating Consistency: Analysts have not shown strong agreement, with recent ratings ranging from "Strong Sell" to "Neutral". This dispersion highlights uncertainty about the company's direction.

Alignment with Price Trend: The bearish analyst outlook matches the recent price decline of -0.81%, suggesting a fairly coherent market narrative.

Key Fundamentals:

• Net cash flow from operating activities per share (YoY growth rate %): -93.24% (model score: 3.00). A sharp decline in operating cash flow per share indicates potential operational strain.
• EV/EBIT: 108.80x (model score: 1.00). A high EV/EBIT ratio suggests that the company is being valued at a premium, which could be a red flag if earnings are not growing to support it.
• Interest coverage ratio (EBIT / Interest expense) (%): 22.53% (model score: 2.00). A solid interest coverage indicates manageable debt obligations.
• CFOA (Cash flow from operating activities): 0.0519 (model score: 4.00). Despite the overall negative cash flow, CFOA remains positive and is the highest-scoring factor, indicating some strength in core operations.
• Gross Profit Margin (GPM): 41.08% (model score: 0.00). A declining GPM raises concerns about pricing power or cost control.

Money-Flow Trends

Big-money (institutional) and retail flows have shown divergent patterns. While large and extra-large investors are showing a positive trend, small and medium investors are also contributing to an overall positive flow. The overall inflow ratio is 0.55, suggesting modest net inflows into the stock recently. This contrasts with the bearish technical and fundamental signals, creating a mixed narrative for investors.

Key Technical Signals

The technical outlook for SWKS is weak, with 4 bearish indicators and 0 bullish signals. The technical score is 2.06, indicating caution. Here's how the indicators break down:

• WR Overbought - internal diagnostic score (0-10): 6.28. A neutral rise in the Williams %R indicator, suggesting no immediate danger but a lack of strong momentum.
• MACD Death Cross - internal diagnostic score (0-10): 1. A strong bearish signal that indicates a key trend reversal to the downside.
• Ex-Dividend Date - internal diagnostic score (0-10): 1. A bearish event that often coincides with price declines as shareholders sell before the ex-dividend date.
• Bullish Engulfing - internal diagnostic score (0-10): 1. A pattern typically seen as bullish, but here it's scored as bearish, highlighting a failure in reversal potential.
• Dividend Record Date - internal diagnostic score (0-10): 1. Another bearish signal as it precedes the ex-dividend date and can trigger selling pressure.

Recent Chart Patterns by Date:

• 2025-09-08: A Hanging Man candlestick pattern appeared—another bearish reversal signal.
• 2025-09-02: A MACD Death Cross formed, reinforcing the bearish bias.

Key Insight: The technical landscape is clearly bearish, with no bullish indicators to counterbalance. Investors are urged to avoid SWKS in the near term due to these weak signals.

Conclusion

Given the weak technical score of 2.06, low analyst ratings, and recent bearish price action, the outlook for Skyworks Solutions is cautiously bearish. While institutional money shows some inflow, the fundamentals and technicals don't align with a strong buy case. Consider waiting for a clearer breakout or waiting for stronger confirmation signals before committing capital to SWKS in the near future.