Stock Analysis | Skyworks Solutions Outlook - Bearish Signals Dominate Amid Mixed Analyst Views

Market Snapshot

Headline: Skyworks Solutions (SWKS) faces a bearish technical outlook with a weak score of 2.06. The stock is currently down 2.70%, aligning with recent analyst pessimism and bearish technical indicators.

News Highlights

• Global Supply Chain Shifts: New research from McKinsey & Co highlights the impact of U.S. tariff policies on the semiconductor industry, a sector in which Skyworks Solutions operates. This suggests a potential long-term challenge for growth and margins.
• Semiconductor ETF Outflows: The US Semiconductors ETF (SOXX) saw a net outflow of $750 million in May 2025. This indicates broader sector weakness, which could affect Skyworks Solutions' performance in the short term.
• Japan-U.S. Cooperation on Rare Earths and Semiconductors: Japan is offering U.S. proposals for cooperation on rare earths and semiconductors, potentially helping to counter Chinese dominance. This could be a long-term positive for the industry but does not immediately benefit SWKS.

Analyst Views & Fundamentals

Three analysts and three institutions are currently active on Skyworks Solutions, with a simple average rating of 2.33 and a performance-weighted rating of 1.17. The ratings are not consistent—there are both "Strong Sell" and "Neutral" ratings, indicating a lack of consensus.

• Citigroup (Atif Malik): "Strong Sell" with a historical win rate of 33.3%.
• Susquehanna (Christopher Rolland): "Neutral" with a historical win rate of 33.3% and a poor average return of -2.15%.
• UBS (Timothy Arcuri): "Neutral" with a 50.0% win rate and an average return of 8.06%.

The stock’s current price trend (down -2.70%) aligns with the generally bearish sentiment expressed by analysts, suggesting a weak near-term outlook.

Key Fundamental Factors

• Net cash flow from operating activities per share (YoY growth rate): -95.06% (score: 3) — a sharp decline indicating liquidity pressure.
• Net profit attributable to parent company shareholders / Net profit: 100.00% (score: 2) — full retention of profits, but no growth.
• EV/EBIT: 108.80 (score: 3) — relatively high multiple, suggesting overvaluation or weak earnings.
• Net cash flow from operating activities (YoY growth rate): -26.84% (score: 2) — falling operating cash flow.
• Total profit (YoY growth rate): -34.14% (score: 0) — strong decline in profitability.
• Cash-UP: 9.17% (score: 0) — weak cash position relative to market value.
• Interest coverage ratio: 22.53% (score: 1) — adequate coverage but not robust.
• Total assets turnover ratio: 25.01% (score: 1) — low efficiency in using assets.
• Net profit attributable to parent company shareholders (YoY growth rate): -44.36% (score: 2) — significant drop in profits.
• Cash-MV: 32.79% (score: 2) — modest cash relative to market value.

Money-Flow Trends

Big-money investors are showing positive inflows into Skyworks Solutions, with block inflow at 60.02% and extra-large inflow at 61.79%. Small, medium, and large investors are also contributing to a positive overall trend. The overall inflow ratio stands at 58.80%, indicating that institutional and large investors are accumulating the stock despite the bearish technical backdrop.

Key Technical Signals

The technical outlook for Skyworks Solutions is weak, with an internal diagnostic score of 2.06. Bearish indicators dominate (4 vs 0 bullish), and key insights suggest a high risk of decline.

Internal Diagnostic Scores (0-10)

• WR Overbought: 6.28 — a neutral signal with mixed returns.
• MACD Death Cross: 1 — a strong bearish signal with a 0% win rate.
• Ex-Dividend Date: 1 — historically bearish with 25% win rate and -1.73% average return.
• Bullish Engulfing: 1 — bearish despite the name, with -3.18% average return.
• Dividend Record Date: 1 — bearish, with -1.73% average return.

Recent Chart Patterns

• August 22, 2025: WR Overbought triggered.
• August 25, 2025: WR Overbought again.
• August 26, 2025: Ex-Dividend Date and Dividend Record Date occurred, both bearish signals.
• September 2, 2025: MACD Death Cross triggered — a major bearish signal.
• August 27, 2025: Bullish Engulfing pattern formed — historically bearish for this stock.

Conclusion

Despite positive money flows and mixed analyst views, the technical outlook for Skyworks Solutions remains bearish with an internal diagnostic score of 2.06. Key indicators suggest a weak momentum and high risk of further declines. Given the current environment, investors are advised to consider avoiding the stock or waiting for a clearer reversal signal before committing capital.