SMITH & WESSON BRANDS INC (SWBI)
US8317541063 - Common Stock
We assign a fundamental rating of 5 out of 10 to SWBI. SWBI was compared to 32 industry peers in the Leisure Products industry. SWBI scores excellent on profitability, but there are some minor concerns on its financial health. SWBI is quite expensive at the moment. It does show a decent growth rate.
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 4 of the past 5 years.
In the past 5 years SWBI always reported a positive cash flow from operatings.
1.2 Ratios
SWBI has a better Return On Assets (4.61%) than 67.74% of its industry peers.
SWBI has a better Return On Equity (6.98%) than 64.52% of its industry peers.
SWBI has a better Return On Invested Capital (7.36%) than 61.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWBI is significantly above the industry average of 11.36%.
The last Return On Invested Capital (7.36%) for SWBI is well below the 3 year average (45.09%), which needs to be investigated, but indicates that SWBI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 6.98% | ||
| ROIC | 7.36% |
ROA(3y)34.12%
ROA(5y)19.27%
ROE(3y)52.71%
ROE(5y)29.29%
ROIC(3y)45.09%
ROIC(5y)29.36%
1.3 Margins
The Profit Margin of SWBI (5.04%) is better than 67.74% of its industry peers.
SWBI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.91%, SWBI is doing good in the industry, outperforming 70.97% of the companies in the same industry.
In the last couple of years the Operating Margin of SWBI has grown nicely.
With a Gross Margin value of 28.03%, SWBI perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
SWBI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.91% | ||
| PM (TTM) | 5.04% | ||
| GM | 28.03% |
OM growth 3Y7.6%
OM growth 5Y20.9%
PM growth 3YN/A
PM growth 5Y18.38%
GM growth 3Y1.87%
GM growth 5Y0.5%
2. Health
2.1 Basic Checks
SWBI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SWBI has more shares outstanding than it did 1 year ago.
SWBI has less shares outstanding than it did 5 years ago.
SWBI has a worse debt/assets ratio than last year.
2.2 Solvency
SWBI has an Altman-Z score of 5.27. This indicates that SWBI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.27, SWBI belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that SWBI is not too dependend on debt financing.
SWBI has a Debt to Equity ratio (0.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.27 |
ROIC/WACC0.8
WACC9.19%
2.3 Liquidity
SWBI has a Current Ratio of 3.21. This indicates that SWBI is financially healthy and has no problem in meeting its short term obligations.
SWBI's Current ratio of 3.21 is fine compared to the rest of the industry. SWBI outperforms 64.52% of its industry peers.
SWBI has a Quick Ratio of 1.42. 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 1.42, SWBI is in line with its industry, outperforming 51.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The earnings per share for SWBI have decreased strongly by -52.17% in the last year.
The Earnings Per Share has been growing by 12.80% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.11% in the past year.
The Revenue has been decreasing by -4.62% on average over the past years.
EPS 1Y (TTM)-52.17%
EPS 3Y0.81%
EPS 5Y12.8%
EPS growth Q2Q-29.17%
Revenue 1Y (TTM)1.11%
Revenue growth 3Y-3.28%
Revenue growth 5Y-4.62%
Revenue growth Q2Q6.58%
3.2 Future
SWBI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.70% yearly.
The Revenue is expected to grow by 10.58% on average over the next years. This is quite good.
EPS Next Y-23.5%
EPS Next 2Y19.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.82%
Revenue Next 2Y10.58%
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
The Price/Earnings ratio is 25.95, which means the current valuation is very expensive for SWBI.
Based on the Price/Earnings ratio, SWBI is valued a bit more expensive than 61.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of SWBI to the average of the S&P500 Index (25.20), we can say SWBI is valued inline with the index average.
A Price/Forward Earnings ratio of 14.23 indicates a correct valuation of SWBI.
SWBI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SWBI is cheaper than 61.29% of the companies in the same industry.
SWBI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.95 | ||
| Fwd PE | 14.23 |
4.2 Price Multiples
SWBI's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.38 |
4.3 Compensation for Growth
The decent profitability rating of SWBI may justify a higher PE ratio.
SWBI's earnings are expected to grow with 19.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)2.03
EPS Next 2Y19.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.86%, SWBI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.38, SWBI pays a better dividend. On top of this SWBI pays more dividend than 80.65% of the companies listed in the same industry.
SWBI's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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 Years3
Div Non Decr Years3
5.3 Sustainability
SWBI pays out 80.51% of its income as dividend. This is not a sustainable payout ratio.
DP80.51%
EPS Next 2Y19.7%
EPS Next 3YN/A
SMITH & WESSON BRANDS INC
NASDAQ:SWBI (4/24/2024, 11:54:48 AM)
17.13
+0.01 (+0.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap779.76M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.95 | ||
| Fwd PE | 14.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 6.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.91% | ||
| PM (TTM) | 5.04% | ||
| GM | 28.03% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-52.17%
EPS 3Y0.81%
EPS 5Y
EPS growth Q2Q
EPS Next Y-23.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.11%
Revenue growth 3Y-3.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y