Learn more about whether Skywater Technology Inc is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (SKYT) grades on certain investment factors and determine whether it meets your investment needs.
Latest Skywater Technology Inc Stock News
As of November 29, 2022, Skywater Technology Inc had a $383.8 million market capitalization, putting it in the 52nd percentile of companies in the Semiconductors industry.
Skywater Technology Inc does not have a meaningful P/E due to negative earnings over the last 12 trailing months. Skywater Technology Inc’s trailing 12-month revenue is $186.4 million with a -34.1% profit margin. Year-over-year quarterly sales growth most recently was 49.4%. Analysts expect adjusted earnings to reach $-0.823 per share for the current fiscal year. Skywater Technology Inc does not currently pay a dividend.
There is a positive fundamental outlook for the semiconductors sub-industry over the next twelve months. The industry is poised to continue growing due to the mainstream adoption of Internet of Things (IoT), 5G and the automotive sector’s increasing demand for semiconductors. According to a survey conducted in the fourth quarter of 2020 with 156 senior executives from global semiconductor companies, 79% are predicting an industry-wide increase in profitability in 2021 with 73% planning to increase capital spending and 71% planning to spend more on research & development. The industry is dealing with supply constraints more severe than any we have seen in the last 20 years, largely reflecting the sharper than expected recovery in demand as consumers appear well-positioned to spend. Specifically, the automotive space was caught flat-footed as demand was already weak entering the pandemic and digested inventories amid the downturn while factories were shut down. As demand recovered, the entire industry rushed to place orders. However, with demand already booming in other end markets, such as data centers/notebooks and automotive, historically not being a key area of growth for chipmakers, these customers were put on the back burner. Due to these constraints, both the Chinese and U.S. governments are looking to build capacity within their home territory to better manage supply chains and prioritize national security. There is possible industry growth of 15% in 2021 and 6% in 2022, after a 7% rise in 2020. We see cloud/enterprise investments remaining healthy and they should benefit from new server cycles that began in the second quarter.
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Grading Skywater Technology Inc Stock
Before you choose to buy, sell or hold Skywater Technology Inc stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (SKYT) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Skywater Technology Inc’s stock grades for value, growth and quality. Learn more about A+ Investor here!
Skywater Technology Inc Stock Value Grade
|Price/Free Cash Flow||na||26.2|
Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. To decide if Skywater Technology Inc stock is a buy or sell, you’ll want to evaluate its fair market price or intrinsic value.
Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.
AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
Stocks with a Value Score from 81-100 are considered deep value, those with a score between 61-80 are value and so on.
Skywater Technology Inc has a Value Score of 15, which is Ultra Expensive.
Skywater Technology Inc Stock Growth Grade
|Metric||Metric Score||SKYT||Sector Median|
|Sales Growth 5yr Ann'l||0||0.0%||9.3%|
|Sales Increases YoY Last 5 yrs||48||3 of 5||3 of 5|
|Cash from Operations Ann'l Positive Last 5 yrs||49||3 of 5||3 of 5|
The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.
In order to compute the Growth Score and assign it a letter grade, the percentile ranks for each of the three individual components—consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations—must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.
The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered Very Weak, while those in the top 20% receive A grades, which are considered Very Strong.
Skywater Technology Inc has a Growth Score of 45, which is Average.
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Skywater Technology Inc Stock Momentum Grade
|Relative Price Strength (Q1)||22||(28.1%)||(12.4%)|
|Relative Price Strength (Q2)||98||102.0%||(4.0%)|
|Relative Price Strength (Q3)||15||(36.1%)||(14.3%)|
|Relative Price Strength (Q4)||14||(38.6%)||(14.0%)|
|Relative Price Strength (weighted 4 qtr)||41||(5.8%)||(10.1%)|
Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.
Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.
Skywater Technology Inc has a Momentum Score of 41, which is Average.
Other Skywater Technology Inc Stock Grades
In addition to Value, Momentum and Growth, A+ Investor also provides grades for Estimate Revisions and Quality.
The Earnings Estimate Revisions Grade takes into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises—or at least continued sales growth (the exact opposite is generally true, too). AAII’s stock screen that follows the companies with the highest earnings estimate revisions (i.e., the best grades) has a 23.3% backtested annual return since inception, whereas an example screen following those with the worst revisions has a backtested annual return since inception of under 5%.
AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the Quality Grade is the percentile rank of the composite return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.
These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether Skywater Technology Inc’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.
Should I Buy Skywater Technology Inc Stock?
Overall, Skywater Technology Inc stock has a Value Grade of F, Growth Grade of C, Momentum Grade of C .
Whether or not you should buy Skywater Technology Inc stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.
Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how Skywater Technology Inc stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.
Skywater Technology Inc (SKYT) Competitors
Companies similar to Skywater Technology Inc in the Semiconductors industry.
|Company name||Ticker||Market Cap|
|Transphorm Technology Inc||TGAN||$325.70Mil|
|Silex Systems Ltd (ADR)||SILXY||$395.63Mil|
|Valens Semiconductor Ltd||VLN||$457.42Mil|
|Magnachip Semiconductor Corp||MX||$466.84Mil|
Skywater Technology Inc Stock: Bottom Line
You can use the information about how Skywater Technology Inc stock is graded to determine if you should invest in this specific company. However, you should decide whether Skywater Technology Inc stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.
We encourage investors to do their own due diligence and research through programs of education that teach you to invest for yourself. In this way, you can effectively become a manager of your own wealth—without having to rely on others for your financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
So, if you’re still on the fence about whether Skywater Technology Inc stock is a buy, sell or hold, you can utilize our expansive and robust screening tools like A+ Investor to help make your decision.
A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs and understand your portfolio at a more detailed level.