SWK HOLDINGS CORP (SWKH) Stock Fundamental Analysis
NASDAQ:SWKH - Nasdaq - US78501P2039 - Common Stock
We assign a fundamental rating of 5 out of 10 to SWKH. SWKH was compared to 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 valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years SWKH always reported a positive cash flow from operatings.
1.2 Ratios
SWKH has a better Return On Assets (3.29%) than 68.32% of its industry peers.
SWKH's Return On Equity of 3.73% is on the low side compared to the rest of the industry. SWKH is outperformed by 61.39% of its industry peers.
The Return On Invested Capital of SWKH (4.00%) is comparable to the rest of the industry.
SWKH had an Average Return On Invested Capital over the past 3 years of 5.81%. This is below the industry average of 7.84%.
| 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 73.27% of its industry peers.
In the last couple of years the Profit Margin of SWKH has grown nicely.
With a decent Operating Margin value of 29.87%, SWKH is doing good in the industry, outperforming 77.23% of the companies in the same industry.
In the last couple of years the Operating Margin of SWKH has declined.
| 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
The debt/assets ratio for SWKH is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -14.44, we must say that SWKH is in the distress zone and has some risk of bankruptcy.
SWKH's Altman-Z score of -14.44 is on the low side compared to the rest of the industry. SWKH is outperformed by 80.20% of its industry peers.
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.
SWKH's Debt to FCF ratio of 1.45 is fine compared to the rest of the industry. SWKH outperforms 78.22% 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.
With a decent Debt to Equity ratio value of 0.11, SWKH is doing good in the industry, outperforming 76.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | -14.44 |
ROIC/WACC0.46
WACC8.78%
2.3 Liquidity
SWKH has a Current Ratio of 5.06. This indicates that SWKH is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SWKH (5.06) is better than 92.08% of its industry peers.
A Quick Ratio of 5.06 indicates that SWKH has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.06, SWKH belongs to the best of the industry, outperforming 92.08% of the companies in the same industry.
| 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.
SWKH shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.18%.
Measured over the past years, SWKH shows a small growth in Revenue. The Revenue has been growing by 7.75% on average per year.
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
SWKH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.60% yearly.
Based on estimates for the next years, SWKH will show a small growth in Revenue. The Revenue will grow by 5.23% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 16.72, SWKH is valued correctly.
SWKH's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.94. SWKH is valued slightly cheaper when compared to this.
SWKH is valuated reasonably with a Price/Forward Earnings ratio of 8.12.
SWKH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SWKH is cheaper than 74.26% 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 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.72 | ||
| Fwd PE | 8.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKH is valued a bit cheaper than 69.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SWKH is valued cheaper than 80.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.28 | ||
| EV/EBITDA | 12.05 |
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's earnings are expected to grow with 26.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)0.77
EPS Next 2Y26.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SWKH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SWK HOLDINGS CORP
NASDAQ:SWKH (1/17/2025, 8:00:01 PM)
Premarket: 16.11 -0.28 (-1.71%)16.39
+0.14 (+0.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners94.21%
Inst Owner Change0%
Ins Owners0.95%
Ins Owner Change0%
Market Cap200.45M
Analysts82.5
Price Target24.48 (49.36%)
Short Float %0.38%
Short Ratio4.66
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 | 16.72 | ||
| Fwd PE | 8.12 | ||
| P/S | 3.74 | ||
| P/FCF | 9.28 | ||
| P/OCF | 9.17 | ||
| P/B | 0.71 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 12.05 |
EPS(TTM)0.98
EY5.98%
EPS(NY)2.02
Fwd EY12.32%
FCF(TTM)1.77
FCFY10.78%
OCF(TTM)1.79
OCFY10.9%
SpS4.38
BVpS23.18
TBVpS23.16
PEG (NY)0.34
PEG (5Y)0.77
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 | -14.44 |
F-Score6
WACC8.78%
ROIC/WACC0.46
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%