SWK HOLDINGS CORP (SWKH) Stock Fundamental Analysis
NASDAQ:SWKH - Nasdaq - US78501P2039 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SWKH. SWKH was compared to 99 industry peers in the Financial Services industry. While SWKH has a great health rating, its profitability is only average at the moment. SWKH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, SWKH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
SWKH had positive earnings in the past year.
In the past year SWKH had a positive cash flow from operations.
SWKH had positive earnings in each of the past 5 years.
Each year in the past 5 years SWKH had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SWKH (5.44%) is better than 76.77% of its industry peers.
SWKH has a Return On Equity (6.16%) which is in line with its industry peers.
SWKH's Return On Invested Capital of 5.97% is fine compared to the rest of the industry. SWKH outperforms 69.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWKH is significantly below the industry average of 11.83%.
The 3 year average ROIC (3.95%) for SWKH is below the current ROIC(5.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 6.16% | ||
| ROIC | 5.97% |
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 31.73%, SWKH belongs to the best of the industry, outperforming 82.83% of the companies in the same industry.
SWKH's Profit Margin has declined in the last couple of years.
SWKH has a Operating Margin of 46.44%. This is amongst the best in the industry. SWKH outperforms 86.87% of its industry peers.
In the last couple of years the Operating Margin of SWKH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.44% | ||
| PM (TTM) | 31.73% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 -14.03, we must say that SWKH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SWKH (-14.03) is worse than 80.81% of its industry peers.
SWKH has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
SWKH has a better Debt to FCF ratio (1.18) than 80.81% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that SWKH is not too dependend on debt financing.
SWKH has a better Debt to Equity ratio (0.11) than 76.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | -14.03 |
ROIC/WACC0.71
WACC8.4%
2.3 Liquidity
SWKH has a Current Ratio of 11.30. This indicates that SWKH is financially healthy and has no problem in meeting its short term obligations.
SWKH has a better Current ratio (11.30) than 97.98% of its industry peers.
SWKH has a Quick Ratio of 11.30. This indicates that SWKH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 11.30, SWKH belongs to the top of the industry, outperforming 97.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.3 | ||
| Quick Ratio | 11.3 |
3. Growth
3.1 Past
SWKH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 93.81%, which is quite impressive.
SWKH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.15% yearly.
SWKH shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.23%.
Measured over the past years, SWKH shows a small growth in Revenue. The Revenue has been growing by 7.94% on average per year.
EPS 1Y (TTM)93.81%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%842.86%
Revenue 1Y (TTM)44.23%
Revenue growth 3Y-7.15%
Revenue growth 5Y7.94%
Sales Q2Q%0.43%
3.2 Future
Based on estimates for the next years, SWKH will show a small growth in Earnings Per Share. The EPS will grow by 7.44% on average per year.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y-13.02%
EPS Next 2Y7.44%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 7.59 indicates a rather cheap valuation of SWKH.
SWKH's Price/Earnings ratio is rather cheap when compared to the industry. SWKH is cheaper than 81.82% of the companies in the same industry.
SWKH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 9.58, which indicates a very decent valuation of SWKH.
SWKH's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, SWKH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 9.58 |
4.2 Price Multiples
86.87% of the companies in the same industry are more expensive than SWKH, based on the Enterprise Value to EBITDA ratio.
87.88% 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 | 6.57 | ||
| EV/EBITDA | 6.48 |
4.3 Compensation for Growth
The decent profitability rating of SWKH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SWKH has a Yearly Dividend Yield of 8.78%, which is a nice return.
Compared to an average industry Dividend Yield of 5.10, SWKH pays a better dividend. On top of this SWKH pays more dividend than 92.93% 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.78% |
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 2Y7.44%
EPS Next 3YN/A
14.27
-0.48 (-3.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners87.46%
Inst Owner Change-0.67%
Ins Owners5.1%
Ins Owner Change2.62%
Market Cap175.09M
Analysts82.86
Price Target18.36 (28.66%)
Short Float %0.5%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.78% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)39.72%
Min EPS beat(2)-43.68%
Max EPS beat(2)123.12%
EPS beat(4)1
Avg EPS beat(4)9.24%
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)-23.4%
PT rev (3m)-25%
EPS NQ rev (1m)-25%
EPS NQ rev (3m)-63.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-44.44%
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 | 7.59 | ||
| Fwd PE | 9.58 | ||
| P/S | 3.08 | ||
| P/FCF | 6.57 | ||
| P/OCF | 6.51 | ||
| P/B | 0.6 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 6.48 |
EPS(TTM)1.88
EY13.17%
EPS(NY)1.49
Fwd EY10.44%
FCF(TTM)2.17
FCFY15.23%
OCF(TTM)2.19
OCFY15.36%
SpS4.63
BVpS23.85
TBVpS23.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 6.16% | ||
| ROCE | 8.13% | ||
| ROIC | 5.97% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 6.57% | ||
| OM | 46.44% | ||
| PM (TTM) | 31.73% | ||
| GM | N/A | ||
| FCFM | 46.92% |
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-Score9
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 26.33% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.57% | ||
| Profit Quality | 147.9% | ||
| Current Ratio | 11.3 | ||
| Quick Ratio | 11.3 | ||
| Altman-Z | -14.03 |
F-Score9
WACC8.4%
ROIC/WACC0.71
Cap/Depr(3y)13.55%
Cap/Depr(5y)19.97%
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)93.81%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%842.86%
EPS Next Y-13.02%
EPS Next 2Y7.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)44.23%
Revenue growth 3Y-7.15%
Revenue growth 5Y7.94%
Sales Q2Q%0.43%
Revenue Next Year6.17%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y74.8%
EBIT growth 3Y-18.01%
EBIT growth 5Y2.84%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y520.02%
FCF growth 3Y-11.65%
FCF growth 5Y4.32%
OCF growth 1Y491.19%
OCF growth 3Y-12.41%
OCF growth 5Y4.45%