SWK HOLDINGS CORP (SWKH) Stock Fundamental Analysis
NASDAQ:SWKH - US78501P2039 - Common Stock
14.91 USD
+0.08 (+0.54%)
14.91 USD
0 (0%)
Taking everything into account, SWKH scores 6 out of 10 in our fundamental rating. SWKH was compared to 100 industry peers in the Financial Services industry. SWKH is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. SWKH is cheap, but on the other hand it scores bad on growth. With these ratings, SWKH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year SWKH was profitable.
SWKH had a positive operating cash flow in the past year.
SWKH had positive earnings in each of the past 5 years.
In the past 5 years SWKH always reported a positive cash flow from operatings.
1.2 Ratios
SWKH has a better Return On Assets (6.10%) than 81.00% of its industry peers.
SWKH has a Return On Equity (7.07%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 7.09%, SWKH is doing good in the industry, outperforming 74.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SWKH is below the industry average of 7.71%.
The 3 year average ROIC (3.95%) for SWKH is below the current ROIC(7.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | 7.07% | ||
| ROIC | 7.09% |
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
With an excellent Profit Margin value of 38.99%, SWKH belongs to the best of the industry, outperforming 89.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SWKH has declined.
With an excellent Operating Margin value of 60.33%, SWKH belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SWKH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.33% | ||
| PM (TTM) | 38.99% | ||
| 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
SWKH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SWKH has been reduced compared to 1 year ago.
SWKH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SWKH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -17.16, we must say that SWKH is in the distress zone and has some risk of bankruptcy.
SWKH has a worse Altman-Z score (-17.16) than 79.00% of its industry peers.
SWKH has a debt to FCF ratio of 1.10. This is a very positive value and a sign of high solvency as it would only need 1.10 years to pay back of all of its debts.
SWKH has a Debt to FCF ratio of 1.10. This is amongst the best in the industry. SWKH outperforms 83.00% of its industry peers.
SWKH has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SWKH (0.13) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.1 | ||
| Altman-Z | -17.16 |
ROIC/WACC0.85
WACC8.3%
2.3 Liquidity
SWKH has a Current Ratio of 3.17. This indicates that SWKH is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.17, SWKH belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
A Quick Ratio of 3.17 indicates that SWKH has no problem at all paying its short term obligations.
SWKH has a Quick ratio of 3.17. This is amongst the best in the industry. SWKH outperforms 86.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.17 |
3. Growth
3.1 Past
SWKH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.11%, which is quite impressive.
Measured over the past years, SWKH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.15% on average per year.
The Revenue for SWKH has decreased by -14.27% 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)89.11%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%8.57%
Revenue 1Y (TTM)-14.27%
Revenue growth 3Y-7.15%
Revenue growth 5Y7.94%
Sales Q2Q%-12.92%
3.2 Future
The Earnings Per Share is expected to decrease by -5.06% on average over the next years.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y8.33%
EPS Next 2Y-5.06%
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
A Price/Earnings ratio of 7.81 indicates a rather cheap valuation of SWKH.
Compared to the rest of the industry, the Price/Earnings ratio of SWKH indicates a rather cheap valuation: SWKH is cheaper than 83.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, SWKH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.82, the valuation of SWKH can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as SWKH.
When comparing the Price/Forward Earnings ratio of SWKH to the average of the S&P500 Index (22.72), we can say SWKH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.81 | ||
| Fwd PE | 12.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWKH indicates a rather cheap valuation: SWKH is cheaper than 84.00% of the companies listed in the same industry.
SWKH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SWKH is cheaper than 93.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.25 | ||
| EV/EBITDA | 7.3 |
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 cheap valuation may be justified as SWKH's earnings are expected to decrease with -5.06% in the coming years.
PEG (NY)0.94
PEG (5Y)N/A
EPS Next 2Y-5.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.71%, SWKH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.27, SWKH pays a better dividend. On top of this SWKH pays more dividend than 94.00% of the companies listed in the same industry.
SWKH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.71% |
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 2Y-5.06%
EPS Next 3YN/A
14.91
+0.08 (+0.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners87.48%
Inst Owner Change-0.79%
Ins Owners5.2%
Ins Owner Change0.94%
Market Cap181.16M
Analysts82.86
Price Target18.36 (23.14%)
Short Float %0.44%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.71% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)115.05%
Min EPS beat(2)106.97%
Max EPS beat(2)123.12%
EPS beat(4)2
Avg EPS beat(4)37.16%
Min EPS beat(4)-43.68%
Max EPS beat(4)123.12%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-23.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-48%
EPS NY rev (1m)0%
EPS NY rev (3m)24.55%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.81 | ||
| Fwd PE | 12.82 | ||
| P/S | 4.06 | ||
| P/FCF | 6.25 | ||
| P/OCF | 6.19 | ||
| P/B | 0.74 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 7.3 |
EPS(TTM)1.91
EY12.81%
EPS(NY)1.16
Fwd EY7.8%
FCF(TTM)2.39
FCFY16.01%
OCF(TTM)2.41
OCFY16.17%
SpS3.68
BVpS20.29
TBVpS20.29
PEG (NY)0.94
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | 7.07% | ||
| ROCE | 9.66% | ||
| ROIC | 7.09% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 7.3% | ||
| OM | 60.33% | ||
| PM (TTM) | 38.99% | ||
| GM | N/A | ||
| FCFM | 64.94% |
ROA(3y)4.44%
ROA(5y)4.88%
ROE(3y)5.05%
ROE(5y)5.4%
ROIC(3y)3.95%
ROIC(5y)4.55%
ROICexc(3y)4.02%
ROICexc(5y)4.91%
ROICexgc(3y)4.12%
ROICexgc(5y)5.19%
ROCE(3y)5.39%
ROCE(5y)6.24%
ROICexcg growth 3Y-28.21%
ROICexcg growth 5Y-5.98%
ROICexc growth 3Y-26.22%
ROICexc growth 5Y-3.09%
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
F-Score7
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.1 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 27.21% | ||
| Cap/Sales | 0.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.69% | ||
| Profit Quality | 166.56% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.17 | ||
| Altman-Z | -17.16 |
F-Score7
WACC8.3%
ROIC/WACC0.85
Cap/Depr(3y)12.06%
Cap/Depr(5y)19.08%
Cap/Sales(3y)0.78%
Cap/Sales(5y)3%
Profit Quality(3y)106.32%
Profit Quality(5y)148.41%
High Growth Momentum
Growth
EPS 1Y (TTM)89.11%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%8.57%
EPS Next Y8.33%
EPS Next 2Y-5.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-14.27%
Revenue growth 3Y-7.15%
Revenue growth 5Y7.94%
Sales Q2Q%-12.92%
Revenue Next Year6.17%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y76.27%
EBIT growth 3Y-18.01%
EBIT growth 5Y2.84%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y195.69%
FCF growth 3Y-11.65%
FCF growth 5Y4.32%
OCF growth 1Y187.41%
OCF growth 3Y-12.41%
OCF growth 5Y4.45%