SkyWater Technology Inc. Common Stock (SKYT)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought at sensible prices. SkyWater is a U.S. specialty semiconductor foundry serving defense, aerospace, automotive and bio-health customers. That niche may be strategically valuable, but the numbers do not yet show a wide moat. In the latest reported quarter, fiscal Q2 2026, revenue was $156.4 million, yet net income was -$6.4 million, a -4.08% margin. Trailing free cash flow was -$102.0 million, a -6.3% FCF yield against the $1.6 billion market cap. The data show very high revenue growth but negative profit growth; without a stated period, I treat those as directional, and the quarterly loss confirms the business is not yet converting sales into profits. The balance sheet is leveraged: debt-to-equity is 1.36, and the Altman Z-Score of 1.74 is in a cautionary zone. Return on capital is poor—ROCE 0.28%—despite a 102.80% ROE that likely reflects a small equity base. At the 2026-08-07 close of $32.46, FairStock's P/E is 13.87, but that headline conflicts with the latest quarterly loss. Price-to-book is 8.84, and the Graham Number is $13.92, leaving a -133.19% margin of safety. The Piotroski F-Score is 4/9, mediocre. EV/EBITDA is 10.93. I would want consistent profits, positive free cash flow, and less leverage before calling this a value opportunity. Until then, it looks more like a speculative growth story than a Graham bargain.

In plain English: SkyWater makes specialty computer chips and related manufacturing services in the United States for industries like defense, aerospace, automotive and health. The business is growing sales but is losing money and using cash, and its debt load looks heavy. At the recent price, the shares look expensive compared with the company's accounting value and cash flow, even though reported earnings can make the headline price look lower.

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Data as of 2026-08-07 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer