SMITH & WESSON BRANDS INC (SWBI) Stock Fundamental Analysis
NASDAQ:SWBI - Nasdaq - US8317541063 - Common Stock - Currency: USD
Taking everything into account, SWBI scores 4 out of 10 in our fundamental rating. SWBI was compared to 30 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
In the past year SWBI was profitable.
In the past year SWBI has reported a negative cash flow from operations.
Each year in the past 5 years SWBI has been profitable.
SWBI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SWBI has a better Return On Assets (2.40%) than 73.33% of its industry peers.
SWBI has a Return On Equity of 3.60%. This is in the better half of the industry: SWBI outperforms 70.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.90%, SWBI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SWBI is in line with the industry average of 7.91%.
| 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
With a decent Profit Margin value of 2.83%, SWBI is doing good in the industry, outperforming 73.33% of the companies in the same industry.
SWBI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.42%, SWBI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SWBI's Operating Margin has declined in the last couple of years.
SWBI's Gross Margin of 27.62% is in line compared to the rest of the industry. SWBI outperforms 50.00% of its industry peers.
SWBI's Gross Margin has declined in the last couple of years.
| 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
SWBI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SWBI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SWBI has less shares outstanding
SWBI has a worse debt/assets ratio than last year.
2.2 Solvency
SWBI has an Altman-Z score of 3.98. This indicates that SWBI is financially healthy and has little risk of bankruptcy at the moment.
SWBI's Altman-Z score of 3.98 is fine compared to the rest of the industry. SWBI outperforms 73.33% 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.
With a Debt to Equity ratio value of 0.30, SWBI is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.98 |
ROIC/WACC0.45
WACC8.69%
2.3 Liquidity
SWBI has a Current Ratio of 4.16. This indicates that SWBI is financially healthy and has no problem in meeting its short term obligations.
SWBI has a Current ratio of 4.16. This is amongst the best in the industry. SWBI outperforms 83.33% of its industry peers.
A Quick Ratio of 1.31 indicates that SWBI should not have too much problems paying its short term obligations.
SWBI's Quick ratio of 1.31 is on the low side compared to the rest of the industry. SWBI is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.16 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
SWBI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -61.73%.
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 very negative growth in Revenue. In the last year, the Revenue has decreased by -11.41%.
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.
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 27.19 indicates a quite expensive valuation of SWBI.
The rest of the industry has a similar Price/Earnings ratio as SWBI.
The average S&P500 Price/Earnings ratio is at 27.51. SWBI is around the same levels.
SWBI is valuated quite expensively with a Price/Forward Earnings ratio of 51.65.
The rest of the industry has a similar Price/Forward Earnings ratio as SWBI.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, SWBI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 51.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWBI indicates a somewhat cheap valuation: SWBI is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.04 |
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 6.01%, SWBI is a good candidate for dividend investing.
SWBI's Dividend Yield is rather good when compared to the industry average which is at 4.44. SWBI pays more dividend than 90.00% of the companies in the same industry.
SWBI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.01% |
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
8.43
-0.11 (-1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners55.03%
Inst Owner Change0%
Ins Owners1.69%
Ins Owner Change11.55%
Market Cap373.53M
Analysts80
Price Target14.11 (67.38%)
Short Float %7.94%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.01% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)-144.44%
EPS NQ rev (3m)-144.44%
EPS NY rev (1m)-64.84%
EPS NY rev (3m)-64.84%
Revenue NQ rev (1m)-10.48%
Revenue NQ rev (3m)-10.48%
Revenue NY rev (1m)-9.35%
Revenue NY rev (3m)-9.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 51.65 | ||
| P/S | 0.79 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 8.04 |
EPS(TTM)0.31
EY3.68%
EPS(NY)0.16
Fwd EY1.94%
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 | 3.98 |
F-Score3
WACC8.69%
ROIC/WACC0.45
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 Year194.23%
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