Stock Analysis | Skyworks Solutions Outlook - Weak Technicals and Mixed Analyst Sentiment

Market Snapshot

Headline: Skyworks Solutions faces bearish signals with an internal diagnostic score of 2.32. The stock is currently in a weak technical position, with three bearish indicators outweighing zero bullish ones, suggesting investors should be cautious.

News Highlights

Recent Developments:

• Global Semiconductor Supply Chains Under Scrutiny: New research from McKinsey highlights the impact of U.S. tariffs on the semiconductor sector, which could affect Skyworks Solutions as a player in the chip market.
• Japanese Cooperation on Rare Earths and Semiconductors: Japan is proposing increased cooperation with the U.S. in rare earth materials and semiconductors. Such geopolitical moves could influence supply dynamics and pricing pressures for semiconductor manufacturers like Skyworks.
• Market Moves and Institutional Activity: A major fund, Lansforsakringar Fondforvaltning AB publ, made a $11.77 million investment in NXP Semiconductors, signaling continued institutional interest in the sector. This might indirectly reflect market sentiment toward players like Skyworks.

Analyst Views & Fundamentals

Analyst Consensus:

• Average Rating Score: The simple average rating is 2.33.
• Weighted Rating Score: The performance-weighted average is 1.17, indicating more pessimism in analyst expectations when accounting for historical performance.
• Rating Consistency: Analyst ratings are varied, with two neutral and one strong sell rating in the last 20 days. This dispersion points to uncertainty among analysts about Skyworks’ outlook.
• Alignment with Price Trend: The stock is currently down -2.48%, and the weighted ratings align with the bearish trend, as pessimistic forecasts match the negative price movement.

Key Fundamental Factors:

• Net Profit Attributable to Parent Company Shareholders / Net Profit (%): 100.0% (internal diagnostic score: 3.33)
• Net Cash Flow from Operating Activities per Share (YoY Growth Rate %): -7.24% (internal diagnostic score: 3.00)
• Total Profit (YoY Growth Rate %): -34.14% (internal diagnostic score: 0.00)
• Net Cash Flow from Operating Activities (YoY Growth Rate %): -26.84% (internal diagnostic score: 1.00)
• Cash-UP: 9.17% (internal diagnostic score: 0.00)
• Fixed Assets Turnover Ratio: 1.61 (internal diagnostic score: 1.00)
• Interest Coverage Ratio (EBIT / Interest Expense) (%): 22.53% (internal diagnostic score: 1.00)
• GPOA: 4.97% (internal diagnostic score: 3.00)
• Net Profit Attributable to Parent Company Shareholders (YoY Growth Rate %): -44.36% (internal diagnostic score: 1.00)
• Cash-MV: 32.79% (internal diagnostic score: 2.00)

Overall Fundamental Score: 3.33 (on an internal diagnostic scale of 0-10). While some cash flow metrics remain stable, significant declines in net profit and total profit raise concerns about Skyworks' profitability.

Money-Flow Trends

Big-Money vs. Retail Flow:

• Overall Inflow Ratio: 52.46%, indicating a positive flow of funds into the stock.
• Large and Extra-Large Inflows: Both large and extra-large investors are showing interest, with inflow ratios of 50.82% and 53.40%, respectively.
• Contrast with Retail: While big money is flowing in, small investors are less optimistic, with only 49.58% inflow ratio.
• Overall Trend: The fund-flow score is 7.65 (internal diagnostic score), labeled as "good," showing that institutional investors are currently more bullish than retail traders.

Key Technical Signals

Internal Diagnostic Scores for Technical Indicators (0-10):

• WR Overbought: 6.28 (internal diagnostic score) - suggests neutral strength.
• Ex-Dividend Date: 1.00 (internal diagnostic score) - indicates a bearish signal.
• Dividend Record Date: 1.00 (internal diagnostic score) - also bearish.
• Bullish Engulfing: 1.00 (internal diagnostic score) - despite the name, it has historically performed poorly.

Recent Chart Patterns:

• 2025-08-22: WR Overbought signal noted
• 2025-08-21: WR Overbought signal again
• 2025-08-26: Both Ex-Dividend and Dividend Record dates signaled, likely impacting short-term investor sentiment
• 2025-08-25: WR Overbought appeared again
• 2025-08-27: Bullish Engulfing pattern, but with a historically low success rate of 16.67%

Summary of Momentum and Trend: The technical outlook is clearly bearish, with three strong bearish indicators dominating over zero bullish ones. Recent patterns suggest weak momentum, and the overall trend advises avoiding the stock due to the high risk of price decline.

Conclusion

Actionable Takeaway: Given the weak technical indicators and mixed analyst ratings, investors should consider holding off on new positions in Skyworks Solutions. Instead, wait for a clearer upward trend or positive earnings reports to assess a potential entry point. The current internal diagnostic scores suggest caution, with a technical score of 2.32 and a fundamental score of 3.33 signaling a low-confidence environment for this stock at the moment.