SMITH & WESSON BRANDS INC (SWBI) Stock Fundamental Analysis
NASDAQ:SWBI - Nasdaq - US8317541063 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SWBI. SWBI was compared to 30 industry peers in the Leisure Products industry. SWBI scores excellent on profitability, but there are some minor concerns on its financial health. SWBI does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
SWBI had positive earnings in the past year.
SWBI had a negative 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
The Return On Assets of SWBI (5.15%) is better than 73.33% of its industry peers.
With a decent Return On Equity value of 8.19%, SWBI is doing good in the industry, outperforming 73.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.49%, SWBI is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SWBI had an Average Return On Invested Capital over the past 3 years of 22.14%. This is significantly above the industry average of 8.15%.
The 3 year average ROIC (22.14%) for SWBI is well above the current ROIC(5.49%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 8.19% | ||
| ROIC | 5.49% |
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 (6.04%) than 83.33% of its industry peers.
SWBI's Profit Margin has improved in the last couple of years.
SWBI has a Operating Margin of 7.33%. This is in the better half of the industry: SWBI outperforms 76.67% of its industry peers.
SWBI's Operating Margin has been stable in the last couple of years.
The Gross Margin of SWBI (29.80%) is comparable to the rest of the industry.
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 | 7.33% | ||
| PM (TTM) | 6.04% | ||
| GM | 29.8% |
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
SWBI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SWBI has less shares outstanding
The number of shares outstanding for SWBI has been reduced compared to 5 years ago.
Compared to 1 year ago, SWBI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.98 indicates that SWBI is not in any danger for bankruptcy at the moment.
SWBI has a Altman-Z score of 3.98. This is in the better half of the industry: SWBI outperforms 80.00% of its industry peers.
SWBI has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.39, SWBI perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.98 |
ROIC/WACC0.63
WACC8.7%
2.3 Liquidity
A Current Ratio of 4.67 indicates that SWBI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.67, SWBI belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
SWBI has a Quick Ratio of 1.56. This is a normal value and indicates that SWBI is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.56, SWBI is doing good in the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.67 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
SWBI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.18%.
The Earnings Per Share has been decreasing by -0.49% on average over the past years.
SWBI shows a decrease in Revenue. In the last year, the revenue decreased by -5.45%.
SWBI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.17% yearly.
EPS 1Y (TTM)-18.18%
EPS 3Y-44.47%
EPS 5Y-0.49%
EPS Q2Q%-88.24%
Revenue 1Y (TTM)-5.45%
Revenue growth 3Y-20.32%
Revenue growth 5Y2.17%
Sales Q2Q%-15.71%
3.2 Future
Based on estimates for the next years, SWBI will show a very negative growth in Earnings Per Share. The EPS will decrease by -24.31% on average per year.
SWBI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.70% yearly.
EPS Next Y-58.44%
EPS Next 2Y-24.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.84%
Revenue Next 2Y-2.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.52 indicates a rather expensive valuation of SWBI.
Based on the Price/Earnings ratio, SWBI is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.63, SWBI is valued a bit cheaper.
A Price/Forward Earnings ratio of 20.38 indicates a rather expensive valuation of SWBI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWBI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.85. SWBI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 20.38 |
4.2 Price Multiples
SWBI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SWBI is cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.83 |
4.3 Compensation for Growth
The decent profitability rating of SWBI may justify a higher PE ratio.
A cheap valuation may be justified as SWBI's earnings are expected to decrease with -24.31% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.55%, SWBI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.89, SWBI pays a better dividend. On top of this SWBI pays more dividend than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, SWBI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
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
76.64% of the earnings are spent on dividend by SWBI. This is not a sustainable payout ratio.
DP76.64%
EPS Next 2Y-24.31%
EPS Next 3YN/A
9.46
+0.09 (+0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryLeisure Products
Earnings (Last)
Earnings (Next)
Inst Owners55.54%
Inst Owner Change-0.28%
Ins Owners1.32%
Ins Owner Change-0.03%
Market Cap416.24M
Analysts80
Price Target14.11 (49.15%)
Short Float %3.57%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
Yearly Dividend0.48
Dividend Growth(5Y)N/A
DP76.64%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.3%
Min EPS beat(2)-34.64%
Max EPS beat(2)-1.96%
EPS beat(4)2
Avg EPS beat(4)-2.66%
Min EPS beat(4)-34.64%
Max EPS beat(4)23.99%
EPS beat(8)6
Avg EPS beat(8)12.8%
EPS beat(12)8
Avg EPS beat(12)0.86%
EPS beat(16)10
Avg EPS beat(16)3.66%
Revenue beat(2)0
Avg Revenue beat(2)-5.78%
Min Revenue beat(2)-6.66%
Max Revenue beat(2)-4.9%
Revenue beat(4)0
Avg Revenue beat(4)-6.89%
Min Revenue beat(4)-15.53%
Max Revenue beat(4)-0.49%
Revenue beat(8)3
Avg Revenue beat(8)-1.78%
Revenue beat(12)4
Avg Revenue beat(12)-5.76%
Revenue beat(16)5
Avg Revenue beat(16)-4.85%
PT rev (1m)-9.78%
PT rev (3m)-9.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-56.6%
EPS NY rev (1m)-17.5%
EPS NY rev (3m)-17.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.31%
Revenue NY rev (1m)-0.99%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.52 | ||
| Fwd PE | 20.38 | ||
| P/S | 0.84 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.14 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 7.83 |
EPS(TTM)0.54
EY5.71%
EPS(NY)0.46
Fwd EY4.91%
FCF(TTM)-0.56
FCFYN/A
OCF(TTM)-0.1
OCFYN/A
SpS11.21
BVpS8.27
TBVpS7.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.15% | ||
| ROE | 8.19% | ||
| ROCE | 7.02% | ||
| ROIC | 5.49% | ||
| ROICexc | 5.79% | ||
| ROICexgc | 6.06% | ||
| OM | 7.33% | ||
| PM (TTM) | 6.04% | ||
| GM | 29.8% | ||
| 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-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 62.43% | ||
| Cap/Sales | 4.07% | ||
| Interest Coverage | 6.4 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.67 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 3.98 |
F-Score5
WACC8.7%
ROIC/WACC0.63
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)-18.18%
EPS 3Y-44.47%
EPS 5Y-0.49%
EPS Q2Q%-88.24%
EPS Next Y-58.44%
EPS Next 2Y-24.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-5.45%
Revenue growth 3Y-20.32%
Revenue growth 5Y2.17%
Sales Q2Q%-15.71%
Revenue Next Year-8.84%
Revenue Next 2Y-2.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-22.26%
EBIT growth 3Y-45.94%
EBIT growth 5Y3.57%
EBIT Next Year56.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y64.76%
FCF growth 3Y-62.21%
FCF growth 5Y-9.49%
OCF growth 1Y-203.14%
OCF growth 3Y-30.31%
OCF growth 5Y13.33%