SkyWater Technology Inc. Common Stock (SKYT)

FairStock Score: 48/100 — MIXED

Key Financials

Strengths

• High return on equity of 95.9% demonstrating efficient capital deployment
• Revenue growth of 126.6% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($15) with negative 128% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Weak Piotroski F-Score of 1/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 1.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

SkyWater Technology Inc. Common Stock is a micro-cap technology company valued at $1.6 billion. Revenue stands at $442 million, though the company is currently unprofitable. From a quality standpoint, SkyWater shows weak Piotroski F-Score of 1/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.8 warrants caution. On valuation, the stock is attractively valued at 13.7x earnings, with trades far above its Graham Number ($15) with no margin of safety. Growth dynamics show revenue growing at 126.6% and profit growth of -1045.8%. Our composite FairStock Score of 48/100 reflects mixed fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

SkyWater's 127% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Without a clear path to profitability, continued cash burn forces either dilutive equity raises or debt accumulation that destroys shareholder value. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer