17.37 USD
-0.23 (-1.31%)
Overall SWKH gets a fundamental rating of 6 out of 10. We evaluated SWKH against 97 industry peers in the Financial Services industry. While SWKH has a great health rating, its profitability is only average at the moment. SWKH scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make SWKH a good candidate 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.
- SWKH had positive earnings in each of the past 5 years.
- In the past 5 years SWKH always reported a positive cash flow from operatings.
1.2 Ratios
- SWKH's Return On Assets of 7.85% is amongst the best of the industry. SWKH outperforms 82.47% of its industry peers.
- Looking at the Return On Equity, with a value of 8.94%, SWKH is in line with its industry, outperforming 46.39% of the companies in the same industry.
- The Return On Invested Capital of SWKH (7.71%) is better than 74.23% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- Looking at the Profit Margin, with a value of 50.36%, 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 Profit Margin of SWKH has declined.
- SWKH has a better Operating Margin (66.71%) than 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.
- Compared to 1 year ago, SWKH has less shares outstanding
- SWKH has less shares outstanding than it did 5 years ago.
- SWKH has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of -15.95, we must say that SWKH is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of -15.95, SWKH is not doing good in the industry: 78.35% of the companies in the same industry are doing better.
- 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.
- The Debt to FCF ratio of SWKH (1.37) is better than 75.26% of its industry peers.
- A Debt/Equity ratio of 0.13 indicates that SWKH is not too dependend on debt financing.
- 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.
- 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 better Quick ratio (5.68) than 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.
- The earnings per share for SWKH have been decreasing by -10.15% on average. This is quite bad
- SWKH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.74%.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 8.00, the valuation of SWKH can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of SWKH indicates a somewhat cheap valuation: SWKH is cheaper than 76.29% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, SWKH is valued rather cheaply.
- SWKH is valuated reasonably with a Price/Forward Earnings ratio of 8.11.
- SWKH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SWKH is cheaper than 68.04% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of SWKH to the average of the S&P500 Index (25.98), we can say SWKH is valued rather cheaply.
| 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.
- The decent profitability rating of SWKH 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
- SWKH has a Yearly Dividend Yield of 23.01%, which is a nice return.
- SWKH's Dividend Yield is rather good when compared to the industry average which is at 2.09. SWKH pays more dividend than 100.00% of the companies 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.