17.4255 USD
+0.05 (+0.26%)
Overall SWKH gets a fundamental rating of 6 out of 10. We evaluated SWKH against 97 industry peers in the Financial Services industry. SWKH has an excellent financial health rating, but there are some minor concerns on its profitability. SWKH may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make SWKH suitable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year SWKH was profitable.
- In the past year SWKH had a positive cash flow from operations.
- Each year in the past 5 years SWKH has been profitable.
- In the past 5 years SWKH always reported a positive cash flow from operatings.
1.2 Ratios
- SWKH has a Return On Assets of 7.85%. This is amongst the best in the industry. SWKH outperforms 82.47% of its industry peers.
- SWKH has a Return On Equity (8.94%) which is comparable to the rest of the industry.
- SWKH's Return On Invested Capital of 7.71% is fine compared to the rest of the industry. SWKH outperforms 74.23% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SWKH is below the industry average of 8.46%.
- The 3 year average ROIC (3.95%) for SWKH is below the current ROIC(7.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 8.94% | ||
| ROIC | 7.71% |
ROA(3y)4.44%
ROA(5y)4.88%
ROE(3y)5.05%
ROE(5y)5.4%
ROIC(3y)3.95%
ROIC(5y)4.55%
1.3 Margins
- SWKH has a better Profit Margin (50.36%) than 91.75% of its industry peers.
- SWKH's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 66.71%, SWKH belongs to the top of the industry, outperforming 91.75% of the companies in the same industry.
- SWKH's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.71% | ||
| PM (TTM) | 50.36% | ||
| GM | N/A |
OM growth 3Y-11.7%
OM growth 5Y-4.72%
PM growth 3Y-13.35%
PM growth 5Y-17.3%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWKH is destroying value.
- Compared to 1 year ago, SWKH has less shares outstanding
- Compared to 5 years ago, SWKH has less shares outstanding
- The debt/assets ratio for SWKH has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of -16.00, we must say that SWKH is in the distress zone and has some risk of bankruptcy.
- SWKH has a worse Altman-Z score (-16.00) than 78.35% of its industry peers.
- The Debt to FCF ratio of SWKH is 1.37, which is an excellent value as it means it would take SWKH, only 1.37 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.37, SWKH is in the better half of the industry, outperforming 75.26% of the companies in the same industry.
- A Debt/Equity ratio of 0.13 indicates that SWKH is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.13, SWKH is doing good in the industry, outperforming 72.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | -16 |
ROIC/WACC0.92
WACC8.35%
2.3 Liquidity
- A Current Ratio of 5.68 indicates that SWKH has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 5.68, SWKH belongs to the top of the industry, outperforming 93.81% of the companies in the same industry.
- A Quick Ratio of 5.68 indicates that SWKH has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 5.68, SWKH belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.68 | ||
| Quick Ratio | 5.68 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 121.43% over the past year.
- The earnings per share for SWKH have been decreasing by -10.15% on average. This is quite bad
- The Revenue for SWKH has decreased by -15.74% in the past year. This is quite bad
- The Revenue has been growing slightly by 7.94% on average over the past years.
EPS 1Y (TTM)121.43%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%78.79%
Revenue 1Y (TTM)-15.74%
Revenue growth 3Y-7.15%
Revenue growth 5Y7.94%
Sales Q2Q%4.43%
3.2 Future
- Based on estimates for the next years, SWKH will show a very strong growth in Earnings Per Share. The EPS will grow by 28.86% on average per year.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y70.79%
EPS Next 2Y28.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.17%
Revenue Next 2YN/A
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.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.03, the valuation of SWKH can be described as very reasonable.
- SWKH's Price/Earnings ratio is a bit cheaper when compared to the industry. SWKH is cheaper than 76.29% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, SWKH is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.14, which indicates a very decent valuation of SWKH.
- Based on the Price/Forward Earnings ratio, SWKH is valued a bit cheaper than the industry average as 68.04% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SWKH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 8.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SWKH is valued a bit cheaper than 77.32% of the companies in the same industry.
- 77.32% of the companies in the same industry are more expensive than SWKH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.06 | ||
| EV/EBITDA | 7.73 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SWKH has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as SWKH's earnings are expected to grow with 28.86% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y28.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 23.01%, SWKH is a good candidate for dividend investing.
- SWKH's Dividend Yield is rather good when compared to the industry average which is at 2.09. SWKH pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, SWKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 23.01% |
5.2 History
- SWKH is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y28.86%
EPS Next 3YN/A
SWK HOLDINGS CORP / SWKH FAQ
What is the ChartMill fundamental rating of SWK HOLDINGS CORP (SWKH) stock?
ChartMill assigns a fundamental rating of 6 / 10 to SWKH.
What is the valuation status for SWKH stock?
ChartMill assigns a valuation rating of 8 / 10 to SWK HOLDINGS CORP (SWKH). This can be considered as Undervalued.
Can you provide the profitability details for SWK HOLDINGS CORP?
SWK HOLDINGS CORP (SWKH) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for SWKH stock?
The Earnings per Share (EPS) of SWK HOLDINGS CORP (SWKH) is expected to grow by 70.79% in the next year.