SkyWater Technology, Inc.
SkyWater Technology, Inc. Fundamental Analysis
SkyWater Technology, Inc. (SKYT) shows strong financial fundamentals with a PE ratio of 11.27, profit margin of 26.90%, and ROE of 99.25%. The company generates $0.4B in annual revenue with strong year-over-year growth of 29.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SKYT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSKYT demonstrates superior asset utilization.
Valuation Score
ExcellentSKYT trades at attractive valuation levels.
Growth Score
ExcellentSKYT delivers strong and consistent growth momentum.
Financial Health Score
WeakSKYT carries high financial risk with limited liquidity.
Profitability Score
ModerateSKYT maintains healthy but balanced margins.
Key Financial Metrics
Is SKYT Expensive or Cheap?
P/E Ratio
SKYT trades at 11.27 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SKYT's PEG of -1.96 indicates potential undervaluation.
Price to Book
The market values SkyWater Technology, Inc. at 7.14 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.91 times EBITDA. This is generally considered low.
How Well Does SKYT Make Money?
Net Profit Margin
For every $100 in sales, SkyWater Technology, Inc. keeps $26.90 as profit after all expenses.
Operating Margin
Core operations generate 0.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $99.25 in profit for every $100 of shareholder equity.
ROA
SkyWater Technology, Inc. generates $16.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SkyWater Technology, Inc. generates limited operating cash flow of $-24.18M, signaling weaker underlying cash strength.
Free Cash Flow
SkyWater Technology, Inc. generates weak or negative free cash flow of $-53.25M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.10 in free cash annually.
FCF Yield
SKYT converts -3.97% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.99
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How SKYT Stacks Against Its Sector Peers
| Metric | SKYT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.27 | 34.43 | Better (Cheaper) |
| ROE | 99.25% | 1135.00% | Weak |
| Net Margin | 26.90% | -134663.00% (disorted) | Strong |
| Debt/Equity | 1.19 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 0.60 | 5.77 | Weak Liquidity |
| ROA | 16.21% | -310462.00% (disorted) | Strong |
SKYT outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SkyWater Technology, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
155.22%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
567.58%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-120.35%
Industry Style: Growth, Innovation, High Beta
Declining