SMITH & WESSON BRANDS INC (SWBI)
US8317541063 - Common Stock
Taking everything into account, SWBI scores 6 out of 10 in our fundamental rating. SWBI was compared to 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SWBI had positive earnings in the past year.
SWBI had a positive operating cash flow in the past year.
SWBI had positive earnings in 4 of the past 5 years.
In the past 5 years SWBI always reported a positive cash flow from operatings.
1.2 Ratios
SWBI's Return On Assets of 6.02% is fine compared to the rest of the industry. SWBI outperforms 80.00% of its industry peers.
SWBI has a Return On Equity of 9.10%. This is in the better half of the industry: SWBI outperforms 70.00% of its industry peers.
The Return On Invested Capital of SWBI (7.12%) is better than 70.00% of its industry peers.
SWBI had an Average Return On Invested Capital over the past 3 years of 22.14%. This is significantly above the industry average of 8.16%.
The 3 year average ROIC (22.14%) for SWBI is well above the current ROIC(7.12%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 9.1% | ||
| ROIC | 7.12% |
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
Looking at the Profit Margin, with a value of 6.74%, SWBI belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
SWBI's Profit Margin has improved in the last couple of years.
The Operating Margin of SWBI (8.76%) is better than 80.00% of its industry peers.
SWBI's Operating Margin has been stable in the last couple of years.
SWBI has a Gross Margin of 30.58%. This is comparable to the rest of the industry: SWBI outperforms 53.33% of its industry peers.
In the last couple of years the Gross Margin of SWBI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.76% | ||
| PM (TTM) | 6.74% | ||
| GM | 30.58% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SWBI is creating value.
SWBI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SWBI has less shares outstanding
SWBI has a worse debt/assets ratio than last year.
2.2 Solvency
SWBI has an Altman-Z score of 4.39. This indicates that SWBI is financially healthy and has little risk of bankruptcy at the moment.
SWBI has a Altman-Z score of 4.39. This is amongst the best in the industry. SWBI outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that SWBI is not too dependend on debt financing.
SWBI's Debt to Equity ratio of 0.28 is in line compared to the rest of the industry. SWBI outperforms 53.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 4.39 |
ROIC/WACC0.82
WACC8.73%
2.3 Liquidity
SWBI has a Current Ratio of 3.54. This indicates that SWBI is financially healthy and has no problem in meeting its short term obligations.
SWBI's Current ratio of 3.54 is fine compared to the rest of the industry. SWBI outperforms 76.67% of its industry peers.
A Quick Ratio of 1.19 indicates that SWBI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.19, SWBI is in line with its industry, outperforming 43.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for SWBI have decreased by -5.48% in the last year.
Measured over the past years, SWBI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.49% on average per year.
The Revenue has grown by 11.82% in the past year. This is quite good.
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)11.82%
Revenue growth 3Y-20.32%
Revenue growth 5Y2.17%
Sales Q2Q%3.78%
3.2 Future
SWBI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.96% yearly.
The Revenue is expected to grow by 5.68% on average over the next years.
EPS Next Y31.59%
EPS Next 2Y25.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.06%
Revenue Next 2Y5.68%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SWBI is valuated correctly with a Price/Earnings ratio of 15.45.
Based on the Price/Earnings ratio, SWBI is valued a bit cheaper than 76.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.77, SWBI is valued a bit cheaper.
The Price/Forward Earnings ratio is 8.29, which indicates a very decent valuation of SWBI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWBI indicates a rather cheap valuation: SWBI is cheaper than 90.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SWBI to the average of the S&P500 Index (23.38), we can say SWBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 8.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWBI indicates a rather cheap valuation: SWBI is cheaper than 90.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.3 |
4.3 Compensation for Growth
SWBI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SWBI may justify a higher PE ratio.
A more expensive valuation may be justified as SWBI's earnings are expected to grow with 25.96% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y25.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SWBI has a Yearly Dividend Yield of 4.69%, which is a nice return.
SWBI's Dividend Yield is rather good when compared to the industry average which is at 3.82. SWBI pays more dividend than 93.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, SWBI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
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
SWBI pays out 65.16% of its income as dividend. This is not a sustainable payout ratio.
DP65.16%
EPS Next 2Y25.96%
EPS Next 3YN/A
SMITH & WESSON BRANDS INC
NASDAQ:SWBI (12/18/2024, 3:58:01 PM)
10.66
-0.33 (-3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap469.04M
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 8.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.02% | ||
| ROE | 9.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.76% | ||
| PM (TTM) | 6.74% | ||
| GM | 30.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.54 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.48%
EPS 3Y-44.47%
EPS 5Y
EPS Q2Q%
EPS Next Y31.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.82%
Revenue growth 3Y-20.32%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y