SWK HOLDINGS CORP (SWKH)
US78501P2039 - Common Stock
Overall SWKH gets a fundamental rating of 5 out of 10. We evaluated SWKH against 101 industry peers in the Financial Services industry. While SWKH has a great health rating, its profitability is only average at the moment. SWKH has a correct valuation and a medium growth rate.
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
SWKH has a better Return On Assets (3.68%) than 73.27% of its industry peers.
The Return On Equity of SWKH (4.18%) is worse than 61.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.42%, SWKH is in line with its industry, outperforming 54.46% of the companies in the same industry.
SWKH had an Average Return On Invested Capital over the past 3 years of 5.81%. This is in line with the industry average of 7.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 4.18% | ||
| ROIC | 3.42% |
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
SWKH's Profit Margin of 28.56% is amongst the best of the industry. SWKH outperforms 81.19% of its industry peers.
SWKH's Profit Margin has improved in the last couple of years.
SWKH has a Operating Margin of 32.98%. This is in the better half of the industry: SWKH outperforms 77.23% of its industry peers.
SWKH's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.98% | ||
| PM (TTM) | 28.56% | ||
| 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.
The number of shares outstanding for SWKH has been reduced compared to 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 -14.43, we must say that SWKH is in the distress zone and has some risk of bankruptcy.
SWKH has a worse Altman-Z score (-14.43) than 81.19% of its industry peers.
The Debt to FCF ratio of SWKH is 1.63, which is an excellent value as it means it would take SWKH, only 1.63 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SWKH (1.63) is better than 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.
The Debt to Equity ratio of SWKH (0.11) is better than 82.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | -14.43 |
ROIC/WACC0.41
WACC8.27%
2.3 Liquidity
SWKH has a Current Ratio of 2.68. This indicates that SWKH is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.68, SWKH belongs to the best of the industry, outperforming 83.17% of the companies in the same industry.
A Quick Ratio of 2.68 indicates that SWKH has no problem at all paying its short term obligations.
SWKH has a Quick ratio of 2.68. This is amongst the best in the industry. SWKH outperforms 84.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
SWKH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.34%.
The Earnings Per Share has been growing by 21.63% on average over the past years. This is a very strong growth
The Revenue has decreased by -2.09% in the past year.
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)-30.34%
EPS 3Y46.25%
EPS 5Y21.63%
EPS Q2Q%12.9%
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y0.95%
Revenue growth 5Y7.75%
Sales Q2Q%21.52%
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 26.60% on average per year.
SWKH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.23% yearly.
EPS Next Y71.62%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.65, which indicates a correct valuation of SWKH.
SWKH's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 31.77. SWKH is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 8.33, which indicates a very decent valuation of SWKH.
76.24% of the companies in the same industry are more expensive than SWKH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, SWKH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
SWKH's Enterprise Value to EBITDA is on the same level as the industry average.
SWKH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SWKH is cheaper than 75.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.93 | ||
| EV/EBITDA | 14.82 |
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)0.23
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 (10/17/2024, 9:05:58 PM)
16.82
-0.16 (-0.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap207.90M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 8.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.23
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 4.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 32.98% | ||
| PM (TTM) | 28.56% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-30.34%
EPS 3Y46.25%
EPS 5Y
EPS Q2Q%
EPS Next Y71.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y0.95%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y