SMITH & WESSON BRANDS INC (SWBI) Stock Fundamental Analysis
USA - NASDAQ:SWBI - US8317541063 - Common Stock
8.63 USD
-0.08 (-0.92%)
8.63 USD
0 (0%)
Overall SWBI gets a fundamental rating of 4 out of 10. We evaluated SWBI against 33 industry peers in the Leisure Products industry. SWBI has only an average score on both its financial health and profitability. SWBI is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SWBI was profitable.
In the past year SWBI had a positive cash flow from operations.
SWBI had positive earnings in each of the past 5 years.
Of the past 5 years SWBI 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.19%, SWBI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
SWBI's Return On Equity of 3.33% is fine compared to the rest of the industry. SWBI outperforms 69.70% of its industry peers.
The Return On Invested Capital of SWBI (3.22%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SWBI is in line with the industry average of 7.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 3.33% | ||
| ROIC | 3.22% |
ROA(3y)5.46%
ROA(5y)22.38%
ROE(3y)7.86%
ROE(5y)34.43%
ROIC(3y)7.06%
ROIC(5y)28.78%
1.3 Margins
SWBI has a better Profit Margin (2.57%) than 75.76% of its industry peers.
SWBI's Profit Margin has declined in the last couple of years.
SWBI's Operating Margin of 4.58% is fine compared to the rest of the industry. SWBI outperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of SWBI has declined.
Looking at the Gross Margin, with a value of 26.76%, SWBI is in line with its industry, outperforming 45.45% of the companies in the same industry.
SWBI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.58% | ||
| PM (TTM) | 2.57% | ||
| GM | 26.76% |
OM growth 3Y-45.37%
OM growth 5Y-12.94%
PM growth 3Y-49.91%
PM growth 5YN/A
GM growth 3Y-14.58%
GM growth 5Y-2.89%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWBI is destroying value.
SWBI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SWBI has been reduced compared to 5 years ago.
SWBI has a worse debt/assets ratio than last year.
2.2 Solvency
SWBI has an Altman-Z score of 3.99. This indicates that SWBI is financially healthy and has little risk of bankruptcy at the moment.
SWBI's Altman-Z score of 3.99 is fine compared to the rest of the industry. SWBI outperforms 72.73% of its industry peers.
SWBI has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, SWBI is in line with its industry, outperforming 42.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.99 |
ROIC/WACC0.3
WACC10.76%
2.3 Liquidity
A Current Ratio of 5.21 indicates that SWBI has no problem at all paying its short term obligations.
SWBI's Current ratio of 5.21 is amongst the best of the industry. SWBI outperforms 100.00% of its industry peers.
SWBI has a Quick Ratio of 1.37. This is a normal value and indicates that SWBI is financially healthy and should not expect problems in meeting its short term obligations.
SWBI's Quick ratio of 1.37 is in line compared to the rest of the industry. SWBI outperforms 48.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.21 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
SWBI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -65.28%.
Measured over the past years, SWBI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.68% on average per year.
SWBI shows a decrease in Revenue. In the last year, the revenue decreased by -7.55%.
Measured over the past years, SWBI shows a decrease in Revenue. The Revenue has been decreasing by -2.17% on average per year.
EPS 1Y (TTM)-65.28%
EPS 3Y-58.09%
EPS 5Y-17.68%
EPS Q2Q%-300%
Revenue 1Y (TTM)-7.55%
Revenue growth 3Y-18.1%
Revenue growth 5Y-2.17%
Sales Q2Q%-3.69%
3.2 Future
SWBI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.02% yearly.
The Revenue is expected to decrease by -1.02% on average over the next years.
EPS Next Y-45.71%
EPS Next 2Y-4.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.39%
Revenue Next 2Y-1.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.52, SWBI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SWBI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.06, SWBI is valued a bit more expensive.
A Price/Forward Earnings ratio of 30.22 indicates a quite expensive valuation of SWBI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWBI is on the same level as its industry peers.
SWBI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 30.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWBI is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
SWBI's earnings are expected to decrease with -4.02% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SWBI has a Yearly Dividend Yield of 5.97%, which is a nice return.
SWBI's Dividend Yield is rather good when compared to the industry average which is at 4.12. SWBI pays more dividend than 90.91% of the companies in the same industry.
SWBI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
5.2 History
SWBI has been paying a dividend for over 5 years, so it has already some track record.
SWBI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
190.29% of the earnings are spent on dividend by SWBI. This is not a sustainable payout ratio.
DP190.29%
EPS Next 2Y-4.02%
EPS Next 3YN/A
8.63
-0.08 (-0.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners54.03%
Inst Owner Change-0.5%
Ins Owners1.63%
Ins Owner Change2.09%
Market Cap382.65M
Revenue(TTM)471.40M
Net Income(TTM)12.12M
Analysts80
Price Target12.24 (41.83%)
Short Float %7.15%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.97% |
Yearly Dividend0.52
Dividend Growth(5Y)N/A
DP190.29%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.98%
Min EPS beat(2)-14.75%
Max EPS beat(2)28.7%
EPS beat(4)1
Avg EPS beat(4)-5.66%
Min EPS beat(4)-34.64%
Max EPS beat(4)28.7%
EPS beat(8)5
Avg EPS beat(8)9.52%
EPS beat(12)8
Avg EPS beat(12)6.27%
EPS beat(16)9
Avg EPS beat(16)-0.71%
Revenue beat(2)1
Avg Revenue beat(2)-2.09%
Min Revenue beat(2)-9.45%
Max Revenue beat(2)5.28%
Revenue beat(4)1
Avg Revenue beat(4)-3.93%
Min Revenue beat(4)-9.45%
Max Revenue beat(4)5.28%
Revenue beat(8)2
Avg Revenue beat(8)-3.99%
Revenue beat(12)5
Avg Revenue beat(12)-2.99%
Revenue beat(16)5
Avg Revenue beat(16)-6.26%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-55.56%
EPS NY rev (1m)0%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.52 | ||
| Fwd PE | 30.22 | ||
| P/S | 0.81 | ||
| P/FCF | N/A | ||
| P/OCF | 24.72 | ||
| P/B | 1.05 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 9.05 |
EPS(TTM)0.25
EY2.9%
EPS(NY)0.29
Fwd EY3.31%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)0.35
OCFY4.05%
SpS10.63
BVpS8.22
TBVpS7.74
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 3.33% | ||
| ROCE | 4.31% | ||
| ROIC | 3.22% | ||
| ROICexc | 3.37% | ||
| ROICexgc | 3.52% | ||
| OM | 4.58% | ||
| PM (TTM) | 2.57% | ||
| GM | 26.76% | ||
| FCFM | N/A |
ROA(3y)5.46%
ROA(5y)22.38%
ROE(3y)7.86%
ROE(5y)34.43%
ROIC(3y)7.06%
ROIC(5y)28.78%
ROICexc(3y)7.95%
ROICexc(5y)41.51%
ROICexgc(3y)8.39%
ROICexgc(5y)45.89%
ROCE(3y)9.44%
ROCE(5y)38.44%
ROICexgc growth 3Y-62.38%
ROICexgc growth 5Y-14.65%
ROICexc growth 3Y-61.94%
ROICexc growth 5Y-14.59%
OM growth 3Y-45.37%
OM growth 5Y-12.94%
PM growth 3Y-49.91%
PM growth 5YN/A
GM growth 3Y-14.58%
GM growth 5Y-2.89%
F-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.37 | ||
| Cap/Depr | 66.44% | ||
| Cap/Sales | 4.54% | ||
| Interest Coverage | 4.18 | ||
| Cash Conversion | 28.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.21 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 3.99 |
F-Score5
WACC10.76%
ROIC/WACC0.3
Cap/Depr(3y)211.36%
Cap/Depr(5y)157.33%
Cap/Sales(3y)13.44%
Cap/Sales(5y)9.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-65.28%
EPS 3Y-58.09%
EPS 5Y-17.68%
EPS Q2Q%-300%
EPS Next Y-45.71%
EPS Next 2Y-4.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.55%
Revenue growth 3Y-18.1%
Revenue growth 5Y-2.17%
Sales Q2Q%-3.69%
Revenue Next Year-5.39%
Revenue Next 2Y-1.02%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-51.64%
EBIT growth 3Y-55.26%
EBIT growth 5Y-14.83%
EBIT Next Year120.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y90.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-69.16%
OCF growth 3YN/A
OCF growth 5YN/A
SMITH & WESSON BRANDS INC / SWBI FAQ
What is the fundamental rating for SWBI stock?
ChartMill assigns a fundamental rating of 4 / 10 to SWBI.
What is the valuation status for SWBI stock?
ChartMill assigns a valuation rating of 1 / 10 to SMITH & WESSON BRANDS INC (SWBI). This can be considered as Overvalued.
What is the profitability of SWBI stock?
SMITH & WESSON BRANDS INC (SWBI) has a profitability rating of 5 / 10.
What is the financial health of SMITH & WESSON BRANDS INC (SWBI) stock?
The financial health rating of SMITH & WESSON BRANDS INC (SWBI) is 5 / 10.
Is the dividend of SMITH & WESSON BRANDS INC sustainable?
The dividend rating of SMITH & WESSON BRANDS INC (SWBI) is 5 / 10 and the dividend payout ratio is 190.29%.