SWK HOLDINGS CORP (SWKH) Stock Fundamental Analysis
NASDAQ:SWKH - Nasdaq - US78501P2039 - Common Stock - Currency: USD
SWKH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. SWKH is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. A decent growth rate in combination with a cheap valuation! Better keep an eye on SWKH. 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
SWKH's Return On Assets of 5.44% is fine compared to the rest of the industry. SWKH outperforms 76.00% of its industry peers.
SWKH has a Return On Equity of 6.16%. This is comparable to the rest of the industry: SWKH outperforms 41.00% of its industry peers.
SWKH's Return On Invested Capital of 5.97% is fine compared to the rest of the industry. SWKH outperforms 70.00% of its industry peers.
SWKH had an Average Return On Invested Capital over the past 3 years of 3.95%. This is significantly below the industry average of 11.84%.
The 3 year average ROIC (3.95%) for SWKH is below the current ROIC(5.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 6.16% | ||
| ROIC | 5.97% |
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
The Profit Margin of SWKH (31.73%) is better than 83.00% of its industry peers.
SWKH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 46.44%, SWKH belongs to the top of the industry, outperforming 87.00% of the companies in the same industry.
SWKH's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.44% | ||
| PM (TTM) | 31.73% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWKH is destroying value.
The number of shares outstanding for SWKH has been reduced compared to 1 year ago.
Compared to 5 years ago, SWKH has less shares outstanding
Compared to 1 year ago, SWKH has an improved debt to assets ratio.
2.2 Solvency
SWKH has an Altman-Z score of -13.85. This is a bad value and indicates that SWKH is not financially healthy and even has some risk of bankruptcy.
SWKH has a worse Altman-Z score (-13.85) than 81.00% of its industry peers.
SWKH has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
SWKH has a better Debt to FCF ratio (1.18) than 81.00% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that SWKH is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.11, SWKH is doing good in the industry, outperforming 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | -13.85 |
ROIC/WACC0.71
WACC8.39%
2.3 Liquidity
A Current Ratio of 11.30 indicates that SWKH has no problem at all paying its short term obligations.
SWKH has a better Current ratio (11.30) than 98.00% of its industry peers.
SWKH has a Quick Ratio of 11.30. This indicates that SWKH is financially healthy and has no problem in meeting its short term obligations.
SWKH has a Quick ratio of 11.30. This is amongst the best in the industry. SWKH outperforms 98.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.3 | ||
| Quick Ratio | 11.3 |
3. Growth
3.1 Past
SWKH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 93.81%, which is quite impressive.
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 strong growth in Revenue. The Revenue has grown by 44.23%.
SWKH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.94% yearly.
EPS 1Y (TTM)93.81%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%842.86%
Revenue 1Y (TTM)44.23%
Revenue growth 3Y-7.15%
Revenue growth 5Y7.94%
Sales Q2Q%0.43%
3.2 Future
The Earnings Per Share is expected to decrease by -5.06% on average over the next years.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y8.33%
EPS Next 2Y-5.06%
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
A Price/Earnings ratio of 8.10 indicates a reasonable valuation of SWKH.
82.00% of the companies in the same industry are more expensive than SWKH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.29, SWKH is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.10, the valuation of SWKH can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWKH is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of SWKH to the average of the S&P500 Index (21.74), we can say SWKH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKH is valued cheaper than 85.00% of the companies in the same industry.
SWKH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SWKH is cheaper than 89.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.01 | ||
| EV/EBITDA | 6.91 |
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.
SWKH's earnings are expected to decrease with -5.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.97
PEG (5Y)N/A
EPS Next 2Y-5.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 26.56%, SWKH is a good candidate for dividend investing.
SWKH's Dividend Yield is rather good when compared to the industry average which is at 5.00. SWKH pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, SWKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 26.56% |
5.2 History
SWKH is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y-5.06%
EPS Next 3YN/A
NASDAQ:SWKH (7/7/2025, 8:00:00 PM)
15.23
+0.17 (+1.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners87.46%
Inst Owner Change0%
Ins Owners5.1%
Ins Owner Change3.17%
Market Cap186.87M
Analysts82.86
Price Target18.36 (20.55%)
Short Float %0.46%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 26.56% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)39.72%
Min EPS beat(2)-43.68%
Max EPS beat(2)123.12%
EPS beat(4)1
Avg EPS beat(4)9.24%
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)-23.4%
PT rev (3m)-23.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25%
EPS NY rev (1m)24.55%
EPS NY rev (3m)24.55%
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 | 8.1 | ||
| Fwd PE | 13.1 | ||
| P/S | 3.29 | ||
| P/FCF | 7.01 | ||
| P/OCF | 6.95 | ||
| P/B | 0.64 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)1.88
EY12.34%
EPS(NY)1.16
Fwd EY7.63%
FCF(TTM)2.17
FCFY14.27%
OCF(TTM)2.19
OCFY14.39%
SpS4.63
BVpS23.85
TBVpS23.85
PEG (NY)0.97
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 6.16% | ||
| ROCE | 8.13% | ||
| ROIC | 5.97% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 6.57% | ||
| OM | 46.44% | ||
| PM (TTM) | 31.73% | ||
| GM | N/A | ||
| FCFM | 46.92% |
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-Score9
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 26.33% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.57% | ||
| Profit Quality | 147.9% | ||
| Current Ratio | 11.3 | ||
| Quick Ratio | 11.3 | ||
| Altman-Z | -13.85 |
F-Score9
WACC8.39%
ROIC/WACC0.71
Cap/Depr(3y)13.55%
Cap/Depr(5y)19.97%
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)93.81%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%842.86%
EPS Next Y8.33%
EPS Next 2Y-5.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)44.23%
Revenue growth 3Y-7.15%
Revenue growth 5Y7.94%
Sales Q2Q%0.43%
Revenue Next Year6.17%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y74.8%
EBIT growth 3Y-18.01%
EBIT growth 5Y2.84%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y520.02%
FCF growth 3Y-11.65%
FCF growth 5Y4.32%
OCF growth 1Y491.19%
OCF growth 3Y-12.41%
OCF growth 5Y4.45%