SMITH & WESSON BRANDS INC (SWBI) Stock Fundamental Analysis
NASDAQ:SWBI - Nasdaq - US8317541063 - Common Stock - Currency: USD
SWBI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Leisure Products industry. While SWBI has a great profitability rating, there are some minor concerns on its financial health. SWBI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SWBI was profitable.
In the past year SWBI had a positive cash flow from operations.
Of the past 5 years SWBI 4 years were profitable.
SWBI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SWBI has a Return On Assets of 6.13%. This is in the better half of the industry: SWBI outperforms 80.00% of its industry peers.
SWBI has a Return On Equity of 9.76%. This is in the better half of the industry: SWBI outperforms 80.00% of its industry peers.
SWBI has a better Return On Invested Capital (7.10%) than 73.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWBI is significantly above the industry average of 8.27%.
The last Return On Invested Capital (7.10%) for SWBI is well below the 3 year average (22.14%), which needs to be investigated, but indicates that SWBI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 9.76% | ||
| ROIC | 7.1% |
ROA(3y)17.59%
ROA(5y)20.17%
ROE(3y)24.5%
ROE(5y)30.46%
ROIC(3y)22.14%
ROIC(5y)30.61%
1.3 Margins
SWBI has a better Profit Margin (7.00%) than 86.67% of its industry peers.
SWBI's Profit Margin has improved in the last couple of years.
SWBI has a Operating Margin of 9.00%. This is amongst the best in the industry. SWBI outperforms 86.67% of its industry peers.
In the last couple of years the Operating Margin of SWBI has remained more or less at the same level.
SWBI's Gross Margin of 30.83% is in line compared to the rest of the industry. SWBI outperforms 56.67% of its industry peers.
SWBI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9% | ||
| PM (TTM) | 7% | ||
| GM | 30.83% |
OM growth 3Y-32.15%
OM growth 5Y1.37%
PM growth 3Y-32.27%
PM growth 5Y14.1%
GM growth 3Y-10.98%
GM growth 5Y-0.33%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SWBI is creating value.
The number of shares outstanding for SWBI has been reduced compared to 1 year ago.
Compared to 5 years ago, SWBI has less shares outstanding
The debt/assets ratio for SWBI is higher compared to a year ago.
2.2 Solvency
SWBI has an Altman-Z score of 4.19. This indicates that SWBI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SWBI (4.19) is better than 80.00% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that SWBI is not too dependend on debt financing.
The Debt to Equity ratio of SWBI (0.36) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.19 |
ROIC/WACC0.83
WACC8.58%
2.3 Liquidity
SWBI has a Current Ratio of 3.97. This indicates that SWBI is financially healthy and has no problem in meeting its short term obligations.
SWBI has a better Current ratio (3.97) than 80.00% of its industry peers.
SWBI has a Quick Ratio of 1.43. This is a normal value and indicates that SWBI is financially healthy and should not expect problems in meeting its short term obligations.
SWBI has a Quick ratio of 1.43. This is comparable to the rest of the industry: SWBI outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.97 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
The earnings per share for SWBI have decreased by -5.48% in the last year.
SWBI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.49% yearly.
SWBI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.33%.
The Revenue has been growing slightly by 2.17% on average over the past years.
EPS 1Y (TTM)-5.48%
EPS 3Y-44.47%
EPS 5Y-0.49%
EPS Q2Q%-21.43%
Revenue 1Y (TTM)0.33%
Revenue growth 3Y-20.32%
Revenue growth 5Y2.17%
Sales Q2Q%1.73%
3.2 Future
SWBI is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -11.64% yearly.
The Revenue is expected to decrease by -0.85% on average over the next years.
EPS Next Y-49.63%
EPS Next 2Y-11.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.93%
Revenue Next 2Y-0.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SWBI is valuated correctly with a Price/Earnings ratio of 15.88.
76.67% of the companies in the same industry are more expensive than SWBI, based on the Price/Earnings ratio.
SWBI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 17.33, which indicates a rather expensive current valuation of SWBI.
SWBI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. SWBI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 17.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWBI is valued cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.43 |
4.3 Compensation for Growth
SWBI has an outstanding profitability rating, which may justify a higher PE ratio.
SWBI's earnings are expected to decrease with -11.64% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.66%, SWBI is a good candidate for dividend investing.
SWBI's Dividend Yield is rather good when compared to the industry average which is at 4.10. SWBI pays more dividend than 90.00% of the companies in the same industry.
SWBI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
5.2 History
SWBI has been paying a dividend for over 5 years, so it has already some track record.
SWBI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
62.72% of the earnings are spent on dividend by SWBI. This is not a sustainable payout ratio.
DP62.72%
EPS Next 2Y-11.64%
EPS Next 3YN/A
10.96
-0.2 (-1.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners55.54%
Inst Owner Change-92.73%
Ins Owners1.32%
Ins Owner Change3.38%
Market Cap482.24M
Analysts80
Price Target15.64 (42.7%)
Short Float %3.4%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.66% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP62.72%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.34%
Min EPS beat(2)-34.64%
Max EPS beat(2)1.96%
EPS beat(4)3
Avg EPS beat(4)15.93%
Min EPS beat(4)-34.64%
Max EPS beat(4)72.41%
EPS beat(8)7
Avg EPS beat(8)13.91%
EPS beat(12)8
Avg EPS beat(12)-0.77%
EPS beat(16)11
Avg EPS beat(16)6.5%
Revenue beat(2)0
Avg Revenue beat(2)-11.09%
Min Revenue beat(2)-15.53%
Max Revenue beat(2)-6.66%
Revenue beat(4)1
Avg Revenue beat(4)-5.44%
Min Revenue beat(4)-15.53%
Max Revenue beat(4)0.93%
Revenue beat(8)4
Avg Revenue beat(8)-1.06%
Revenue beat(12)4
Avg Revenue beat(12)-6.37%
Revenue beat(16)6
Avg Revenue beat(16)-4.12%
PT rev (1m)0%
PT rev (3m)-17.86%
EPS NQ rev (1m)-94.74%
EPS NQ rev (3m)-94.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-61.72%
Revenue NQ rev (1m)-24.7%
Revenue NQ rev (3m)-21.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-12.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 17.33 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | 15.67 | ||
| P/B | 1.31 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 7.43 |
EPS(TTM)0.69
EY6.3%
EPS(NY)0.63
Fwd EY5.77%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.7
OCFY6.38%
SpS11.7
BVpS8.39
TBVpS7.9
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 9.76% | ||
| ROCE | 9.07% | ||
| ROIC | 7.1% | ||
| ROICexc | 7.69% | ||
| ROICexgc | 8.06% | ||
| OM | 9% | ||
| PM (TTM) | 7% | ||
| GM | 30.83% | ||
| FCFM | N/A |
ROA(3y)17.59%
ROA(5y)20.17%
ROE(3y)24.5%
ROE(5y)30.46%
ROIC(3y)22.14%
ROIC(5y)30.61%
ROICexc(3y)29.72%
ROICexc(5y)44.21%
ROICexgc(3y)32.06%
ROICexgc(5y)48.84%
ROCE(3y)28.29%
ROCE(5y)39.1%
ROICexcg growth 3Y-58.2%
ROICexcg growth 5Y0.34%
ROICexc growth 3Y-57.26%
ROICexc growth 5Y11.73%
OM growth 3Y-32.15%
OM growth 5Y1.37%
PM growth 3Y-32.27%
PM growth 5Y14.1%
GM growth 3Y-10.98%
GM growth 5Y-0.33%
F-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | 101.46% | ||
| Cap/Sales | 6.21% | ||
| Interest Coverage | 8.62 | ||
| Cash Conversion | 39.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.97 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 4.19 |
F-Score6
WACC8.58%
ROIC/WACC0.83
Cap/Depr(3y)215.46%
Cap/Depr(5y)151.7%
Cap/Sales(3y)12.85%
Cap/Sales(5y)8.62%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.48%
EPS 3Y-44.47%
EPS 5Y-0.49%
EPS Q2Q%-21.43%
EPS Next Y-49.63%
EPS Next 2Y-11.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.33%
Revenue growth 3Y-20.32%
Revenue growth 5Y2.17%
Sales Q2Q%1.73%
Revenue Next Year-7.93%
Revenue Next 2Y-0.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.17%
EBIT growth 3Y-45.94%
EBIT growth 5Y3.57%
EBIT Next Year65.41%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y97.61%
FCF growth 3Y-62.21%
FCF growth 5Y-9.49%
OCF growth 1Y632.64%
OCF growth 3Y-30.31%
OCF growth 5Y13.33%