SMITH & WESSON BRANDS INC (SWBI) Stock Fundamental Analysis
NASDAQ:SWBI - Nasdaq - US8317541063 - Common Stock - Currency: USD
SWBI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 31 industry peers in the Leisure Products industry. SWBI has only an average score on both its financial health and profitability. SWBI has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
SWBI had positive earnings in the past year.
SWBI had a negative operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.40%, SWBI is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
SWBI's Return On Equity of 3.60% is amongst the best of the industry. SWBI outperforms 80.65% of its industry peers.
SWBI has a better Return On Invested Capital (3.90%) than 70.97% of its industry peers.
SWBI had an Average Return On Invested Capital over the past 3 years of 7.06%. This is in line with the industry average of 7.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 3.6% | ||
| ROIC | 3.9% |
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's Profit Margin of 2.83% is amongst the best of the industry. SWBI outperforms 80.65% of its industry peers.
In the last couple of years the Profit Margin of SWBI has declined.
SWBI has a better Operating Margin (5.42%) than 70.97% of its industry peers.
In the last couple of years the Operating Margin of SWBI has declined.
SWBI has a Gross Margin of 27.62%. This is comparable to the rest of the industry: SWBI outperforms 51.61% of its industry peers.
In the last couple of years the Gross Margin of SWBI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.42% | ||
| PM (TTM) | 2.83% | ||
| GM | 27.62% |
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.
SWBI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SWBI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.94 indicates that SWBI is not in any danger for bankruptcy at the moment.
SWBI's Altman-Z score of 3.94 is fine compared to the rest of the industry. SWBI outperforms 74.19% of its industry peers.
SWBI has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
SWBI has a Debt to Equity ratio of 0.30. This is comparable to the rest of the industry: SWBI outperforms 45.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.94 |
ROIC/WACC0.44
WACC8.78%
2.3 Liquidity
A Current Ratio of 4.16 indicates that SWBI has no problem at all paying its short term obligations.
SWBI has a better Current ratio (4.16) than 90.32% of its industry peers.
SWBI has a Quick Ratio of 1.31. 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 1.31 is in line compared to the rest of the industry. SWBI outperforms 51.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.16 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The earnings per share for SWBI have decreased strongly by -61.73% in the last year.
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.
Looking at the last year, SWBI shows a very negative growth in Revenue. The Revenue has decreased by -11.41% in the last year.
The Revenue has been decreasing by -2.17% on average over the past years.
EPS 1Y (TTM)-61.73%
EPS 3Y-58.09%
EPS 5Y-17.68%
EPS Q2Q%-53.49%
Revenue 1Y (TTM)-11.41%
Revenue growth 3Y-18.1%
Revenue growth 5Y-2.17%
Sales Q2Q%-11.55%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
SWBI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.41% yearly.
EPS Next Y-47.35%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.85%
Revenue Next 2Y1.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.74, SWBI can be considered very expensive at the moment.
SWBI's Price/Earnings ratio is a bit cheaper when compared to the industry. SWBI is cheaper than 64.52% of the companies in the same industry.
SWBI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.11, which is the current average of the S&P500 Index.
SWBI is valuated quite expensively with a Price/Forward Earnings ratio of 50.80.
The rest of the industry has a similar Price/Forward Earnings ratio as SWBI.
SWBI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 35.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.74 | ||
| Fwd PE | 50.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWBI is valued cheaper than 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.51%, SWBI is a good candidate for dividend investing.
SWBI's Dividend Yield is rather good when compared to the industry average which is at 4.34. SWBI pays more dividend than 93.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, SWBI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.51% |
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
172.02% of the earnings are spent on dividend by SWBI. This is not a sustainable payout ratio.
DP172.02%
EPS Next 2YN/A
EPS Next 3YN/A
8.29
+0.15 (+1.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners54.9%
Inst Owner Change0.91%
Ins Owners1.68%
Ins Owner Change11.55%
Market Cap367.33M
Analysts80
Price Target12.24 (47.65%)
Short Float %6.68%
Short Ratio3.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.51% |
Yearly Dividend0.52
Dividend Growth(5Y)N/A
DP172.02%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8.35%
Min EPS beat(2)-14.75%
Max EPS beat(2)-1.96%
EPS beat(4)1
Avg EPS beat(4)-12.35%
Min EPS beat(4)-34.64%
Max EPS beat(4)1.96%
EPS beat(8)5
Avg EPS beat(8)10.59%
EPS beat(12)7
Avg EPS beat(12)-1.79%
EPS beat(16)9
Avg EPS beat(16)-1.28%
Revenue beat(2)0
Avg Revenue beat(2)-7.17%
Min Revenue beat(2)-9.45%
Max Revenue beat(2)-4.9%
Revenue beat(4)0
Avg Revenue beat(4)-9.13%
Min Revenue beat(4)-15.53%
Max Revenue beat(4)-4.9%
Revenue beat(8)2
Avg Revenue beat(8)-3.28%
Revenue beat(12)4
Avg Revenue beat(12)-6.45%
Revenue beat(16)4
Avg Revenue beat(16)-6.8%
PT rev (1m)-13.25%
PT rev (3m)-13.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-144.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.74 | ||
| Fwd PE | 50.8 | ||
| P/S | 0.77 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.99 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 7.82 |
EPS(TTM)0.31
EY3.74%
EPS(NY)0.16
Fwd EY1.97%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)-0.16
OCFYN/A
SpS10.71
BVpS8.41
TBVpS7.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 3.6% | ||
| ROCE | 5.21% | ||
| ROIC | 3.9% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 4.31% | ||
| OM | 5.42% | ||
| PM (TTM) | 2.83% | ||
| GM | 27.62% | ||
| 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%
ROICexcg growth 3Y-62.38%
ROICexcg 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-Score3
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 68.43% | ||
| Cap/Sales | 4.59% | ||
| Interest Coverage | 4.95 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.16 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.94 |
F-Score3
WACC8.78%
ROIC/WACC0.44
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)-61.73%
EPS 3Y-58.09%
EPS 5Y-17.68%
EPS Q2Q%-53.49%
EPS Next Y-47.35%
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-11.41%
Revenue growth 3Y-18.1%
Revenue growth 5Y-2.17%
Sales Q2Q%-11.55%
Revenue Next Year-5.85%
Revenue Next 2Y1.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-50.34%
EBIT growth 3Y-55.26%
EBIT growth 5Y-14.83%
EBIT Next Year130.26%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-283.71%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-106.77%
OCF growth 3YN/A
OCF growth 5YN/A