SWK HOLDINGS CORP (SWKH) Stock Fundamental Analysis
USA - NASDAQ:SWKH - US78501P2039 - Common Stock
14.52 USD
+0.11 (+0.76%)
14.52 USD
0 (0%)
Taking everything into account, SWKH scores 6 out of 10 in our fundamental rating. SWKH was compared to 101 industry peers in the Financial Services industry. SWKH has an excellent financial health rating, but there are some minor concerns on its profitability. SWKH has a bad growth rate and is valued cheaply. This makes SWKH very considerable 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.
Each year in the past 5 years SWKH has been profitable.
SWKH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.10%, SWKH belongs to the top of the industry, outperforming 81.19% of the companies in the same industry.
SWKH has a Return On Equity (7.07%) which is in line with its industry peers.
The Return On Invested Capital of SWKH (7.09%) is better than 74.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SWKH is below the industry average of 7.65%.
The last Return On Invested Capital (7.09%) for SWKH is above the 3 year average (3.95%), which is a sign of increasing profitability.
| 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
SWKH has a better Profit Margin (38.99%) than 88.12% of its industry peers.
SWKH's Profit Margin has declined in the last couple of years.
SWKH has a Operating Margin of 60.33%. This is amongst the best in the industry. SWKH outperforms 90.10% of its industry peers.
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.
Compared to 1 year ago, SWKH has less shares outstanding
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 -17.22. This is a bad value and indicates that SWKH is not financially healthy and even has some risk of bankruptcy.
SWKH's Altman-Z score of -17.22 is on the low side compared to the rest of the industry. SWKH is outperformed by 80.20% of its industry peers.
The Debt to FCF ratio of SWKH is 1.10, which is an excellent value as it means it would take SWKH, only 1.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.10, SWKH belongs to the top of the industry, outperforming 83.17% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that SWKH is not too dependend on debt financing.
The Debt to Equity ratio of SWKH (0.13) is better than 79.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.1 | ||
| Altman-Z | -17.22 |
ROIC/WACC0.87
WACC8.19%
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.
SWKH has a Current ratio of 3.17. This is amongst the best in the industry. SWKH outperforms 86.14% of its industry peers.
A Quick Ratio of 3.17 indicates that SWKH has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.17, SWKH belongs to the top of the industry, outperforming 87.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 89.11% over the past year.
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.
Looking at the last year, SWKH shows a very negative growth in Revenue. The Revenue has decreased by -14.27% in the last year.
SWKH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.94% yearly.
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
Based on estimates for the next years, SWKH will show a small growth in Earnings Per Share. The EPS will grow by 3.70% on average per year.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y36.79%
EPS Next 2Y3.7%
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
With a Price/Earnings ratio of 7.60, the valuation of SWKH can be described as very cheap.
Based on the Price/Earnings ratio, SWKH is valued cheaply inside the industry as 85.15% of the companies are valued more expensively.
SWKH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
SWKH is valuated reasonably with a Price/Forward Earnings ratio of 10.47.
SWKH's Price/Forward Earnings is on the same level as the industry average.
SWKH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 10.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKH is valued cheaply inside the industry as 84.16% of the companies are valued more expensively.
SWKH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SWKH is cheaper than 91.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.08 | ||
| EV/EBITDA | 7.17 |
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.
The decent profitability rating of SWKH may justify a higher PE ratio.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y3.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SWKH has a Yearly Dividend Yield of 8.83%, which is a nice return.
SWKH's Dividend Yield is rather good when compared to the industry average which is at 5.03. SWKH pays more dividend than 93.07% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SWKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.83% |
5.2 History
SWKH does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y3.7%
EPS Next 3YN/A
14.52
+0.11 (+0.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners87.36%
Inst Owner Change-0.79%
Ins Owners5.25%
Ins Owner Change0.94%
Market Cap176.42M
Analysts82.86
Price Target18.87 (29.96%)
Short Float %0.41%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.83% |
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)2.78%
PT rev (3m)2.78%
EPS NQ rev (1m)30.77%
EPS NQ rev (3m)30.77%
EPS NY rev (1m)26.28%
EPS NY rev (3m)57.27%
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 | 7.6 | ||
| Fwd PE | 10.47 | ||
| P/S | 3.95 | ||
| P/FCF | 6.08 | ||
| P/OCF | 6.02 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | 7.17 |
EPS(TTM)1.91
EY13.15%
EPS(NY)1.39
Fwd EY9.55%
FCF(TTM)2.39
FCFY16.44%
OCF(TTM)2.41
OCFY16.6%
SpS3.68
BVpS20.29
TBVpS20.29
PEG (NY)0.21
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 | -17.22 |
F-Score7
WACC8.19%
ROIC/WACC0.87
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 Y36.79%
EPS Next 2Y3.7%
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%