SMITH & WESSON BRANDS INC (SWBI) Stock Fundamental Analysis
USA - NASDAQ:SWBI - US8317541063 - Common Stock
9.8991 USD
+0.08 (+0.81%)
Taking everything into account, SWBI scores 4 out of 10 in our fundamental rating. SWBI was compared to 33 industry peers in the Leisure Products industry. SWBI has an average financial health and profitability rating. 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 positive 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
SWBI has a better Return On Assets (2.19%) than 69.70% of its industry peers.
Looking at the Return On Equity, with a value of 3.33%, SWBI is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
SWBI's Return On Invested Capital of 3.22% is fine compared to the rest of the industry. SWBI outperforms 60.61% 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 7.78%.
| 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
Looking at the Profit Margin, with a value of 2.57%, SWBI is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
In the last couple of years the Profit Margin of SWBI has declined.
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.
SWBI has a Gross Margin (26.76%) which is in line with its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWBI is destroying value.
Compared to 1 year ago, SWBI has less shares outstanding
The number of shares outstanding for SWBI has been reduced compared to 5 years ago.
Compared to 1 year ago, SWBI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.15 indicates that SWBI is not in any danger for bankruptcy at the moment.
SWBI's Altman-Z score of 4.15 is fine compared to the rest of the industry. SWBI outperforms 69.70% 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.
SWBI's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. SWBI outperforms 42.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.15 |
ROIC/WACC0.31
WACC10.38%
2.3 Liquidity
A Current Ratio of 5.21 indicates that SWBI has no problem at all paying its short term obligations.
SWBI has a Current ratio of 5.21. This is amongst the best in the industry. SWBI outperforms 100.00% of its industry peers.
A Quick Ratio of 1.37 indicates that SWBI should not have too much problems paying its short term obligations.
SWBI has a Quick ratio (1.37) which is in line with 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%.
The Revenue has been decreasing by -2.17% on average over the past years.
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.
Based on estimates for the next years, SWBI will show a decrease in Revenue. The Revenue will decrease by -1.42% on average per year.
EPS Next Y-45.71%
EPS Next 2Y-4.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-5.13%
Revenue Next 2Y-1.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 39.60 indicates a quite expensive valuation of SWBI.
SWBI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SWBI to the average of the S&P500 Index (27.86), we can say SWBI is valued slightly more expensively.
With a Price/Forward Earnings ratio of 34.66, SWBI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWBI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.29. SWBI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.6 | ||
| Fwd PE | 34.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWBI is valued a bit cheaper than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.03 |
4.3 Compensation for Growth
A cheap valuation may be justified as SWBI's earnings are expected to decrease with -4.02% in the coming years.
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 5.50%, which is a nice return.
SWBI's Dividend Yield is rather good when compared to the industry average which is at 4.31. SWBI pays more dividend than 87.88% of the companies in the same industry.
SWBI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
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
SWBI pays out 190.29% of its income as dividend. This is not a sustainable payout ratio.
DP190.29%
EPS Next 2Y-4.02%
EPS Next 3YN/A
NASDAQ:SWBI (10/3/2025, 11:18:55 AM)
9.8991
+0.08 (+0.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners54.03%
Inst Owner Change-1.49%
Ins Owners1.63%
Ins Owner Change14.23%
Market Cap438.93M
Analysts80
Price Target12.24 (23.65%)
Short Float %7.28%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
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)-13.25%
EPS NQ rev (1m)-55.56%
EPS NQ rev (3m)-80.95%
EPS NY rev (1m)3.13%
EPS NY rev (3m)-63.74%
Revenue NQ rev (1m)2.26%
Revenue NQ rev (3m)-4.04%
Revenue NY rev (1m)0.76%
Revenue NY rev (3m)-8.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.6 | ||
| Fwd PE | 34.66 | ||
| P/S | 0.93 | ||
| P/FCF | N/A | ||
| P/OCF | 28.35 | ||
| P/B | 1.2 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 10.03 |
EPS(TTM)0.25
EY2.53%
EPS(NY)0.29
Fwd EY2.89%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)0.35
OCFY3.53%
SpS10.63
BVpS8.22
TBVpS7.74
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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 | 4.15 |
F-Score5
WACC10.38%
ROIC/WACC0.31
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-5.13%
Revenue Next 2Y-1.42%
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