17.45 USD
+0.1 (+0.58%)
Taking everything into account, SWKH scores 6 out of 10 in our fundamental rating. SWKH was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
- SWKH had positive earnings in each of the past 5 years.
- SWKH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.85%, SWKH belongs to the top of the industry, outperforming 82.47% of the companies in the same industry.
- SWKH's Return On Equity of 8.94% is in line compared to the rest of the industry. SWKH outperforms 46.39% of its industry peers.
- SWKH has a better Return On Invested Capital (7.71%) than 74.23% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SWKH is below the industry average of 8.46%.
- The last Return On Invested Capital (7.71%) for SWKH is above the 3 year average (3.95%), which is a sign of increasing profitability.
| 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's Profit Margin of 50.36% is amongst the best of the industry. SWKH outperforms 91.75% 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 66.71%, SWKH belongs to the top of the industry, outperforming 91.75% 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 | 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWKH is destroying value.
- The number of shares outstanding for SWKH has been reduced compared to 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 -16.01. This is a bad value and indicates that SWKH is not financially healthy and even has some risk of bankruptcy.
- SWKH's Altman-Z score of -16.01 is on the low side compared to the rest of the industry. SWKH is outperformed by 78.35% of its industry peers.
- The Debt to FCF ratio of SWKH is 1.37, which is an excellent value as it means it would take SWKH, only 1.37 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 1.37, SWKH is doing good in the industry, outperforming 75.26% of the companies in the same industry.
- 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 better Debt to Equity ratio (0.13) than 72.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | -16.01 |
ROIC/WACC0.92
WACC8.37%
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.
- SWKH has a Quick Ratio of 5.68. This indicates that SWKH is financially healthy and has no problem in meeting 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
- The Earnings Per Share has grown by an impressive 121.43% 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -15.74%.
- The Revenue has been growing slightly by 7.94% on average over the past years.
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
- A Price/Earnings ratio of 8.04 indicates a reasonable valuation of SWKH.
- SWKH's Price/Earnings ratio is a bit cheaper when compared to the industry. SWKH is cheaper than 77.32% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SWKH to the average of the S&P500 Index (28.39), we can say SWKH is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.15, the valuation of SWKH can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SWKH indicates a somewhat cheap valuation: SWKH is cheaper than 69.07% of the companies listed in the same industry.
- SWKH is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.04 | ||
| Fwd PE | 8.15 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SWKH is valued a bit cheaper than 75.26% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SWKH is valued a bit cheaper than 77.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.07 | ||
| EV/EBITDA | 7.71 |
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.
- SWKH's earnings are expected to grow with 28.86% in the coming years. This may justify a more expensive valuation.
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.
- SWKH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 23.01% |
5.2 History
- SWKH does not have a reliable dividend history as it only pays dividend since a couple or years.
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.