SWK HOLDINGS CORP (SWKH) Stock Fundamental Analysis
NASDAQ:SWKH - Nasdaq - US78501P2039 - Common Stock - Currency: USD
Overall SWKH gets a fundamental rating of 6 out of 10. We evaluated SWKH against 100 industry peers in the Financial Services industry. SWKH has an excellent financial health rating, but there are some minor concerns on its profitability. SWKH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, SWKH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year SWKH was profitable.
SWKH had a positive operating cash flow in the past year.
Each year in the past 5 years SWKH has been profitable.
Each year in the past 5 years SWKH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.44%, SWKH is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
SWKH's Return On Equity of 6.16% is in line compared to the rest of the industry. SWKH outperforms 41.00% of its industry peers.
SWKH has a better Return On Invested Capital (5.97%) than 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 last Return On Invested Capital (5.97%) for SWKH is above the 3 year average (3.95%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 31.73%, SWKH belongs to the best of the industry, outperforming 83.00% of the companies in the same industry.
SWKH's Profit Margin has declined in the last couple of years.
SWKH's Operating Margin of 46.44% is amongst the best of the industry. SWKH outperforms 87.00% of its industry peers.
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
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
SWKH has a better debt/assets ratio than last year.
2.2 Solvency
SWKH has an Altman-Z score of -13.86. This is a bad value and indicates that SWKH is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -13.86, SWKH is doing worse than 81.00% of the companies in the same industry.
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's Debt to FCF ratio of 1.18 is amongst the best of the industry. SWKH outperforms 81.00% of its industry peers.
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 better Debt to Equity ratio (0.11) than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | -13.86 |
ROIC/WACC0.7
WACC8.49%
2.3 Liquidity
SWKH has a Current Ratio of 11.30. This indicates that SWKH is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 11.30, SWKH belongs to the best of the industry, outperforming 98.00% of the companies in the same industry.
A Quick Ratio of 11.30 indicates that SWKH has no problem at all paying its short term obligations.
SWKH's Quick ratio of 11.30 is amongst the best of 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
The Earnings Per Share has grown by an impressive 93.81% over the past year.
SWKH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.15% yearly.
SWKH shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.23%.
Measured over the past years, SWKH shows a small growth in Revenue. The Revenue has been growing by 7.94% on average per year.
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
Based on estimates for the next years, SWKH will show a decrease in Earnings Per Share. The EPS will decrease by -5.06% on average per year.
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 8.09 indicates a reasonable valuation of SWKH.
Compared to the rest of the industry, the Price/Earnings ratio of SWKH indicates a rather cheap valuation: SWKH is cheaper than 81.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, SWKH is valued rather cheaply.
A Price/Forward Earnings ratio of 13.07 indicates a correct valuation of SWKH.
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 (36.44), we can say SWKH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.09 | ||
| Fwd PE | 13.07 |
4.2 Price Multiples
84.00% of the companies in the same industry are more expensive than SWKH, based on the Enterprise Value to EBITDA ratio.
87.00% 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 | 7 | ||
| EV/EBITDA | 6.89 |
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.
The decent profitability rating of SWKH may justify a higher PE ratio.
A cheap valuation may be justified as SWKH's earnings are expected to decrease with -5.06% in the coming years.
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 26.65%, SWKH is a good candidate for dividend investing.
SWKH's Dividend Yield is rather good when compared to the industry average which is at 4.86. SWKH pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, SWKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 26.65% |
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
15.2
+0.02 (+0.13%)
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 Cap186.50M
Analysts82.86
Price Target18.36 (20.79%)
Short Float %0.43%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 26.65% |
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)0%
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 | 8.09 | ||
| Fwd PE | 13.07 | ||
| P/S | 3.28 | ||
| P/FCF | 7 | ||
| P/OCF | 6.93 | ||
| P/B | 0.64 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 6.89 |
EPS(TTM)1.88
EY12.37%
EPS(NY)1.16
Fwd EY7.65%
FCF(TTM)2.17
FCFY14.3%
OCF(TTM)2.19
OCFY14.42%
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 | -13.86 |
F-Score9
WACC8.49%
ROIC/WACC0.7
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%