17.37 USD
-0.23 (-1.31%)
SWKH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 97 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 valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make SWKH suitable for value investing!
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.
- In the past 5 years SWKH has always been profitable.
- In the past 5 years SWKH always reported a positive cash flow from operatings.
1.2 Ratios
- SWKH has a better Return On Assets (7.85%) than 82.47% of its industry peers.
- SWKH has a Return On Equity (8.94%) which is comparable to the rest of the industry.
- SWKH has a better Return On Invested Capital (7.71%) than 74.23% of its industry peers.
- SWKH had an Average Return On Invested Capital over the past 3 years of 3.95%. This is below the industry average of 8.46%.
- The 3 year average ROIC (3.95%) for SWKH is below the current ROIC(7.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 8.94% | ||
| ROIC | 7.71% |
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
- SWKH has a better Profit Margin (50.36%) than 91.75% of its industry peers.
- SWKH's Profit Margin has declined in the last couple of years.
- SWKH has a Operating Margin of 66.71%. This is amongst the best in the industry. SWKH outperforms 91.75% of its industry peers.
- In the last couple of years the Operating Margin of SWKH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.71% | ||
| PM (TTM) | 50.36% | ||
| 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
- SWKH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- SWKH has less shares outstanding than it did 1 year ago.
- SWKH has less shares outstanding than it did 5 years ago.
- SWKH has a better debt/assets ratio than last year.
2.2 Solvency
- SWKH has an Altman-Z score of -15.95. 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 -15.95, SWKH is doing worse than 78.35% of the companies in the same industry.
- SWKH has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
- SWKH has a better Debt to FCF ratio (1.37) than 75.26% of its industry peers.
- SWKH has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
- SWKH has a Debt to Equity ratio of 0.13. This is in the better half of the industry: SWKH outperforms 72.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | -15.95 |
ROIC/WACC0.93
WACC8.33%
2.3 Liquidity
- SWKH has a Current Ratio of 5.68. This indicates that SWKH is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 5.68, SWKH belongs to the top of the industry, outperforming 93.81% of the companies in the same industry.
- A Quick Ratio of 5.68 indicates that SWKH has no problem at all paying its short term obligations.
- SWKH has a Quick ratio of 5.68. This is amongst the best in the industry. SWKH outperforms 93.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.68 | ||
| Quick Ratio | 5.68 |
3. Growth
3.1 Past
- SWKH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 121.43%, which is quite impressive.
- SWKH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.15% yearly.
- The Revenue for SWKH has decreased by -15.74% in the past year. This is quite bad
- SWKH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.94% yearly.
EPS 1Y (TTM)121.43%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%78.79%
Revenue 1Y (TTM)-15.74%
Revenue growth 3Y-7.15%
Revenue growth 5Y7.94%
Sales Q2Q%4.43%
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 28.86% on average per year.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y70.79%
EPS Next 2Y28.86%
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
- With a Price/Earnings ratio of 8.00, the valuation of SWKH can be described as very reasonable.
- SWKH's Price/Earnings ratio is a bit cheaper when compared to the industry. SWKH is cheaper than 76.29% of the companies in the same industry.
- SWKH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.87.
- SWKH is valuated reasonably with a Price/Forward Earnings ratio of 8.11.
- Based on the Price/Forward Earnings ratio, SWKH is valued a bit cheaper than 68.04% of the companies in the same industry.
- SWKH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
- SWKH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SWKH is cheaper than 75.26% of the companies in the same industry.
- 77.32% 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 | 9.03 | ||
| EV/EBITDA | 7.81 |
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.
- SWKH has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as SWKH's earnings are expected to grow with 28.86% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y28.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 23.01%, SWKH is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.09, SWKH pays a better dividend. On top of this SWKH pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, SWKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 23.01% |
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 2Y28.86%
EPS Next 3YN/A
SWK HOLDINGS CORP / SWKH FAQ
What is the ChartMill fundamental rating of SWK HOLDINGS CORP (SWKH) stock?
ChartMill assigns a fundamental rating of 6 / 10 to SWKH.
What is the valuation status for SWKH stock?
ChartMill assigns a valuation rating of 8 / 10 to SWK HOLDINGS CORP (SWKH). This can be considered as Undervalued.
Can you provide the profitability details for SWK HOLDINGS CORP?
SWK HOLDINGS CORP (SWKH) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for SWKH stock?
The Earnings per Share (EPS) of SWK HOLDINGS CORP (SWKH) is expected to grow by 70.79% in the next year.