SMITH & WESSON BRANDS INC (SWBI) Stock Fundamental Analysis
USA - NASDAQ:SWBI - US8317541063 - Common Stock
10.16 USD
-0.07 (-0.68%)
9.98 USD
-0.18 (-1.77%)
We assign a fundamental rating of 4 out of 10 to SWBI. SWBI was compared to 33 industry peers in the Leisure Products industry. Both the profitability and the financial health of SWBI get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past year SWBI had a positive cash flow from operations.
SWBI had positive earnings in each of the past 5 years.
SWBI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SWBI has a better Return On Assets (2.19%) 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.
With a Return On Invested Capital value of 3.22%, SWBI perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SWBI is in line with the industry average of 7.26%.
| 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's Profit Margin of 2.57% is fine compared to the rest of the industry. SWBI outperforms 75.76% of its industry peers.
SWBI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.58%, SWBI is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Operating Margin of SWBI has declined.
SWBI has a Gross Margin (26.76%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SWBI has declined.
| 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.
Compared to 1 year ago, SWBI has less shares outstanding
SWBI has less shares outstanding than it did 5 years ago.
SWBI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.20 indicates that SWBI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.20, SWBI is doing good in the industry, outperforming 69.70% of the companies in the same industry.
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 | 4.2 |
ROIC/WACC0.29
WACC11.12%
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.
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.
Looking at the Quick ratio, with a value of 1.37, SWBI is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.21 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The earnings per share for SWBI have decreased strongly by -65.28% in the last year.
SWBI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.68% yearly.
Looking at the last year, SWBI shows a decrease in Revenue. The Revenue has decreased by -7.55% in the last year.
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
The Earnings Per Share is expected to decrease by -4.02% on average over the next years.
SWBI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.02% yearly.
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 40.64, 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.
SWBI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.08.
Based on the Price/Forward Earnings ratio of 35.57, the valuation of SWBI can be described as expensive.
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 expensively when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.64 | ||
| Fwd PE | 35.57 |
4.2 Price Multiples
75.76% of the companies in the same industry are more expensive than SWBI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.31 |
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 5.15%, which is a nice return.
SWBI's Dividend Yield is rather good when compared to the industry average which is at 3.87. 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
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
10.16
-0.07 (-0.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners54.03%
Inst Owner Change-0.2%
Ins Owners1.63%
Ins Owner Change13.14%
Market Cap450.49M
Revenue(TTM)471.40M
Net Income(TTM)12.12M
Analysts80
Price Target12.24 (20.47%)
Short Float %7.15%
Short Ratio3.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
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)-0.21%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.64 | ||
| Fwd PE | 35.57 | ||
| P/S | 0.96 | ||
| P/FCF | N/A | ||
| P/OCF | 29.1 | ||
| P/B | 1.24 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 10.31 |
EPS(TTM)0.25
EY2.46%
EPS(NY)0.29
Fwd EY2.81%
FCF(TTM)-0.13
FCFYN/A
OCF(TTM)0.35
OCFY3.44%
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 | 4.2 |
F-Score5
WACC11.12%
ROIC/WACC0.29
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%.