SWK HOLDINGS CORP (SWKH) Stock Fundamental Analysis
NASDAQ:SWKH - Nasdaq - US78501P2039 - Common Stock - Currency: USD
Overall SWKH gets a fundamental rating of 6 out of 10. We evaluated SWKH against 101 industry peers in the Financial Services industry. While SWKH has a great health rating, its profitability is only average at the moment. SWKH is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
Each year in the past 5 years SWKH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.44%, SWKH is in the better half of the industry, outperforming 76.24% of the companies in the same industry.
SWKH's Return On Equity of 6.16% is in line compared to the rest of the industry. SWKH outperforms 41.58% of its industry peers.
SWKH has a better Return On Invested Capital (5.97%) than 71.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SWKH is below the industry average of 7.77%.
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
The Profit Margin of SWKH (31.73%) is better than 83.17% of its industry peers.
In the last couple of years the Profit Margin of SWKH has declined.
With an excellent Operating Margin value of 46.44%, SWKH belongs to the best of the industry, outperforming 87.13% of the companies in the same industry.
SWKH's Operating Margin has declined in the last couple of years.
| 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.
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.
Compared to 1 year ago, SWKH has an improved debt to assets ratio.
2.2 Solvency
SWKH has an Altman-Z score of -13.93. This is a bad value and indicates that SWKH is not financially healthy and even has some risk of bankruptcy.
SWKH has a Altman-Z score of -13.93. This is in the lower half of the industry: SWKH underperforms 79.21% of its industry peers.
The Debt to FCF ratio of SWKH is 1.18, which is an excellent value as it means it would take SWKH, only 1.18 years of fcf income to pay off all of its debts.
SWKH's Debt to FCF ratio of 1.18 is amongst the best of the industry. SWKH outperforms 81.19% of its industry peers.
SWKH has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
SWKH's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. SWKH outperforms 76.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | -13.93 |
ROIC/WACC0.72
WACC8.27%
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.
The Current ratio of SWKH (11.30) is better than 98.02% 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.
The Quick ratio of SWKH (11.30) is better than 98.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.3 | ||
| Quick Ratio | 11.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 93.81% over the past year.
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
SWKH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.06% yearly.
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
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
Based on the Price/Earnings ratio of 7.86, the valuation of SWKH can be described as very cheap.
Based on the Price/Earnings ratio, SWKH is valued cheaply inside the industry as 82.18% of the companies are valued more expensively.
SWKH is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.71 indicates a correct valuation of SWKH.
SWKH's Price/Forward Earnings ratio is in line with the industry average.
SWKH is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKH is valued cheaply inside the industry as 85.15% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SWKH indicates a rather cheap valuation: SWKH is cheaper than 88.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.8 | ||
| EV/EBITDA | 6.59 |
4.3 Compensation for Growth
SWKH's 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.
SWKH's earnings are expected to decrease with -5.06% in the coming years. This may justify a cheaper valuation.
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 27.05%, SWKH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.75, SWKH pays a better dividend. On top of this SWKH pays more dividend than 100.00% 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 27.05% |
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
14.78
-0.01 (-0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners87.46%
Inst Owner Change0.31%
Ins Owners5.1%
Ins Owner Change0.94%
Market Cap181.35M
Analysts82.86
Price Target18.36 (24.22%)
Short Float %0.44%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 27.05% |
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)0%
PT rev (3m)-23.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25%
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 | 7.86 | ||
| Fwd PE | 12.71 | ||
| P/S | 3.19 | ||
| P/FCF | 6.8 | ||
| P/OCF | 6.74 | ||
| P/B | 0.62 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 6.59 |
EPS(TTM)1.88
EY12.72%
EPS(NY)1.16
Fwd EY7.87%
FCF(TTM)2.17
FCFY14.7%
OCF(TTM)2.19
OCFY14.83%
SpS4.63
BVpS23.85
TBVpS23.85
PEG (NY)0.94
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 | 1.14 | ||
| Cap/Depr | 17.01% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.81% | ||
| Profit Quality | 147.9% | ||
| Current Ratio | 11.3 | ||
| Quick Ratio | 11.3 | ||
| Altman-Z | -13.93 |
F-Score9
WACC8.27%
ROIC/WACC0.72
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)93.81%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%842.86%
EPS Next Y8.33%
EPS Next 2Y-5.06%
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%