SWK HOLDINGS CORP (SWKH) Stock Fundamental Analysis
NASDAQ:SWKH - Nasdaq - US78501P2039 - Common Stock - Currency: USD
Overall SWKH gets a fundamental rating of 5 out of 10. We evaluated SWKH against 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 is not valued too expensively and it also shows a decent growth rate.
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.
SWKH had positive earnings in each of the past 5 years.
In the past 5 years SWKH always reported a positive cash flow from operatings.
1.2 Ratios
SWKH has a Return On Assets of 3.29%. This is in the better half of the industry: SWKH outperforms 67.33% of its industry peers.
The Return On Equity of SWKH (3.73%) is worse than 63.37% of its industry peers.
The Return On Invested Capital of SWKH (4.00%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SWKH is in line with the industry average of 7.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 3.73% | ||
| ROIC | 4% |
ROA(3y)6.14%
ROA(5y)5.93%
ROE(3y)6.73%
ROE(5y)6.48%
ROIC(3y)5.81%
ROIC(5y)5%
1.3 Margins
The Profit Margin of SWKH (19.77%) is better than 72.28% of its industry peers.
SWKH's Profit Margin has improved in the last couple of years.
The Operating Margin of SWKH (29.87%) is better than 77.23% of its industry peers.
SWKH's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.87% | ||
| PM (TTM) | 19.77% | ||
| GM | N/A |
OM growth 3Y22.23%
OM growth 5Y-3.11%
PM growth 3Y43.73%
PM growth 5Y12.03%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWKH is destroying value.
SWKH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SWKH has less shares outstanding
Compared to 1 year ago, SWKH has a worse debt to assets ratio.
2.2 Solvency
SWKH has an Altman-Z score of -14.29. This is a bad value and indicates that SWKH is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -14.29, SWKH is not doing good in the industry: 79.21% of the companies in the same industry are doing better.
The Debt to FCF ratio of SWKH is 1.45, which is an excellent value as it means it would take SWKH, only 1.45 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.45, SWKH is in the better half of the industry, outperforming 79.21% of the companies in the same industry.
SWKH has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
SWKH has a Debt to Equity ratio of 0.11. This is in the better half of the industry: SWKH outperforms 77.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | -14.29 |
ROIC/WACC0.27
WACC14.91%
2.3 Liquidity
A Current Ratio of 5.06 indicates that SWKH has no problem at all paying its short term obligations.
SWKH has a Current ratio of 5.06. This is amongst the best in the industry. SWKH outperforms 93.07% of its industry peers.
SWKH has a Quick Ratio of 5.06. This indicates that SWKH is financially healthy and has no problem in meeting its short term obligations.
SWKH's Quick ratio of 5.06 is amongst the best of the industry. SWKH outperforms 93.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.06 | ||
| Quick Ratio | 5.06 |
3. Growth
3.1 Past
The earnings per share for SWKH have decreased strongly by -15.52% in the last year.
SWKH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.63% yearly.
Looking at the last year, SWKH shows a very strong growth in Revenue. The Revenue has grown by 42.18%.
SWKH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.75% yearly.
EPS 1Y (TTM)-15.52%
EPS 3Y46.25%
EPS 5Y21.63%
EPS Q2Q%-8.33%
Revenue 1Y (TTM)42.18%
Revenue growth 3Y0.95%
Revenue growth 5Y7.75%
Sales Q2Q%21.03%
3.2 Future
Based on estimates for the next years, SWKH will show a very strong growth in Earnings Per Share. The EPS will grow by 26.60% on average per year.
The Revenue is expected to grow by 5.23% on average over the next years.
EPS Next Y49.76%
EPS Next 2Y26.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.29%
Revenue Next 2Y5.23%
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 accelerating.
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
Based on the Price/Earnings ratio of 17.46, the valuation of SWKH can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as SWKH.
The average S&P500 Price/Earnings ratio is at 29.63. SWKH is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 8.47, which indicates a very decent valuation of SWKH.
Based on the Price/Forward Earnings ratio, SWKH is valued a bit cheaper than 68.32% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. SWKH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 8.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKH is valued a bit cheaper than the industry average as 66.34% of the companies are valued more expensively.
79.21% of the companies in the same industry are more expensive than SWKH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.68 | ||
| EV/EBITDA | 12.58 |
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.
A more expensive valuation may be justified as SWKH's earnings are expected to grow with 26.60% in the coming years.
PEG (NY)0.35
PEG (5Y)0.81
EPS Next 2Y26.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SWKH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.11
-0.06 (-0.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners94.21%
Inst Owner Change-4.78%
Ins Owners0.95%
Ins Owner Change2.25%
Market Cap209.26M
Analysts82.86
Price Target24.48 (43.07%)
Short Float %0.38%
Short Ratio5.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.23%
Min EPS beat(2)-37.78%
Max EPS beat(2)-4.68%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)2
Avg Revenue beat(2)12.69%
Min Revenue beat(2)7.51%
Max Revenue beat(2)17.86%
Revenue beat(4)4
Avg Revenue beat(4)13.17%
Min Revenue beat(4)3.15%
Max Revenue beat(4)24.17%
Revenue beat(8)7
Avg Revenue beat(8)9.85%
Revenue beat(12)10
Avg Revenue beat(12)16.85%
Revenue beat(16)13
Avg Revenue beat(16)21.59%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 8.47 | ||
| P/S | 3.91 | ||
| P/FCF | 9.68 | ||
| P/OCF | 9.57 | ||
| P/B | 0.74 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 12.58 |
EPS(TTM)0.98
EY5.73%
EPS(NY)2.02
Fwd EY11.8%
FCF(TTM)1.77
FCFY10.33%
OCF(TTM)1.79
OCFY10.45%
SpS4.38
BVpS23.18
TBVpS23.16
PEG (NY)0.35
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.29% | ||
| ROE | 3.73% | ||
| ROCE | 5.06% | ||
| ROIC | 4% | ||
| ROICexc | 4.23% | ||
| ROICexgc | 4.23% | ||
| OM | 29.87% | ||
| PM (TTM) | 19.77% | ||
| GM | N/A | ||
| FCFM | 40.35% |
ROA(3y)6.14%
ROA(5y)5.93%
ROE(3y)6.73%
ROE(5y)6.48%
ROIC(3y)5.81%
ROIC(5y)5%
ROICexc(3y)6.42%
ROICexc(5y)5.43%
ROICexgc(3y)6.83%
ROICexgc(5y)5.89%
ROCE(3y)7.37%
ROCE(5y)6.38%
ROICexcg growth 3Y12.83%
ROICexcg growth 5Y-5.61%
ROICexc growth 3Y15.35%
ROICexc growth 5Y-5.99%
OM growth 3Y22.23%
OM growth 5Y-3.11%
PM growth 3Y43.73%
PM growth 5Y12.03%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.45 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 13.62% | ||
| Cap/Sales | 0.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 122.77% | ||
| Profit Quality | 204.15% | ||
| Current Ratio | 5.06 | ||
| Quick Ratio | 5.06 | ||
| Altman-Z | -14.29 |
F-Score6
WACC14.91%
ROIC/WACC0.27
Cap/Depr(3y)19.13%
Cap/Depr(5y)N/A
Cap/Sales(3y)1.32%
Cap/Sales(5y)N/A
Profit Quality(3y)92.45%
Profit Quality(5y)130.01%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.52%
EPS 3Y46.25%
EPS 5Y21.63%
EPS Q2Q%-8.33%
EPS Next Y49.76%
EPS Next 2Y26.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)42.18%
Revenue growth 3Y0.95%
Revenue growth 5Y7.75%
Sales Q2Q%21.03%
Revenue Next Year4.29%
Revenue Next 2Y5.23%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.04%
EBIT growth 3Y23.4%
EBIT growth 5Y4.4%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y34.06%
FCF growth 3Y-2.08%
FCF growth 5Y-6.02%
OCF growth 1Y32.39%
OCF growth 3Y-8.24%
OCF growth 5Y-5.38%