SWK HOLDINGS CORP (SWKH) Stock Fundamental Analysis
NASDAQ:SWKH - Nasdaq - US78501P2039 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SWKH. SWKH was compared to 100 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! With these ratings, SWKH could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year SWKH was profitable.
SWKH had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 5.44%, SWKH is doing good in the industry, outperforming 76.00% of the companies in the same industry.
SWKH has a Return On Equity of 6.16%. This is comparable to the rest of the industry: SWKH outperforms 41.00% of its industry peers.
With a decent Return On Invested Capital value of 5.97%, SWKH is doing good in the industry, outperforming 70.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SWKH is significantly below the industry average of 11.84%.
The 3 year average ROIC (3.95%) for SWKH is below the current ROIC(5.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 6.16% | ||
| ROIC | 5.97% |
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 Profit Margin of 31.73%. This is amongst the best in the industry. SWKH outperforms 83.00% of its industry peers.
SWKH's Profit Margin has declined in the last couple of years.
SWKH has a better Operating Margin (46.44%) than 87.00% of its industry peers.
SWKH's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.44% | ||
| PM (TTM) | 31.73% | ||
| 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.
The number of shares outstanding for SWKH has been reduced compared to 5 years ago.
The debt/assets ratio for SWKH has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -13.88, we must say that SWKH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SWKH (-13.88) is worse than 81.00% of its industry peers.
SWKH has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
SWKH's Debt to FCF ratio of 1.18 is amongst the best of the industry. SWKH outperforms 81.00% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that SWKH is not too dependend on debt financing.
SWKH has a Debt to Equity ratio of 0.11. This is in the better half of the industry: SWKH outperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | -13.88 |
ROIC/WACC0.71
WACC8.38%
2.3 Liquidity
A Current Ratio of 11.30 indicates that SWKH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 11.30, SWKH belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
A Quick Ratio of 11.30 indicates that SWKH has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 11.30, SWKH belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 11.3 | ||
| Quick Ratio | 11.3 |
3. Growth
3.1 Past
SWKH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 93.81%, which is quite impressive.
The earnings per share for SWKH have been decreasing by -10.15% on average. This is quite bad
The Revenue has grown by 44.23% in the past year. This is a very strong growth!
SWKH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.94% yearly.
EPS 1Y (TTM)93.81%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%842.86%
Revenue 1Y (TTM)44.23%
Revenue growth 3Y-7.15%
Revenue growth 5Y7.94%
Sales Q2Q%0.43%
3.2 Future
Based on estimates for the next years, SWKH will show a decrease in Earnings Per Share. The EPS will decrease by -5.06% on average per year.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next Y8.33%
EPS Next 2Y-5.06%
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
The Price/Earnings ratio is 8.01, which indicates a very decent valuation of SWKH.
83.00% of the companies in the same industry are more expensive than SWKH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.45. SWKH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.95, SWKH is valued correctly.
SWKH's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SWKH to the average of the S&P500 Index (21.90), we can say SWKH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.01 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
87.00% of the companies in the same industry are more expensive than SWKH, based on the Enterprise Value to EBITDA ratio.
SWKH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SWKH is cheaper than 89.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.93 | ||
| EV/EBITDA | 6.84 |
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 decrease with -5.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.96
PEG (5Y)N/A
EPS Next 2Y-5.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SWKH has a Yearly Dividend Yield of 26.56%, which is a nice return.
SWKH's Dividend Yield is rather good when compared to the industry average which is at 4.87. SWKH pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SWKH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 26.56% |
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 2Y-5.06%
EPS Next 3YN/A
NASDAQ:SWKH (7/3/2025, 8:11:28 PM)
15.06
+0.02 (+0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners87.46%
Inst Owner Change-93.76%
Ins Owners5.1%
Ins Owner Change3.17%
Market Cap184.79M
Analysts82.86
Price Target18.36 (21.91%)
Short Float %0.46%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 26.56% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)39.72%
Min EPS beat(2)-43.68%
Max EPS beat(2)123.12%
EPS beat(4)1
Avg EPS beat(4)9.24%
Min EPS beat(4)-43.68%
Max EPS beat(4)123.12%
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-23.4%
PT rev (3m)-23.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25%
EPS NY rev (1m)24.55%
EPS NY rev (3m)24.55%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.01 | ||
| Fwd PE | 12.95 | ||
| P/S | 3.25 | ||
| P/FCF | 6.93 | ||
| P/OCF | 6.87 | ||
| P/B | 0.63 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 6.84 |
EPS(TTM)1.88
EY12.48%
EPS(NY)1.16
Fwd EY7.72%
FCF(TTM)2.17
FCFY14.43%
OCF(TTM)2.19
OCFY14.56%
SpS4.63
BVpS23.85
TBVpS23.85
PEG (NY)0.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.44% | ||
| ROE | 6.16% | ||
| ROCE | 8.13% | ||
| ROIC | 5.97% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 6.57% | ||
| OM | 46.44% | ||
| PM (TTM) | 31.73% | ||
| GM | N/A | ||
| FCFM | 46.92% |
ROA(3y)4.44%
ROA(5y)4.88%
ROE(3y)5.05%
ROE(5y)5.4%
ROIC(3y)3.95%
ROIC(5y)4.55%
ROICexc(3y)4.02%
ROICexc(5y)4.91%
ROICexgc(3y)4.12%
ROICexgc(5y)5.19%
ROCE(3y)5.39%
ROCE(5y)6.24%
ROICexcg growth 3Y-28.21%
ROICexcg growth 5Y-5.98%
ROICexc growth 3Y-26.22%
ROICexc growth 5Y-3.09%
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
F-Score9
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 26.33% | ||
| Cap/Sales | 0.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.57% | ||
| Profit Quality | 147.9% | ||
| Current Ratio | 11.3 | ||
| Quick Ratio | 11.3 | ||
| Altman-Z | -13.88 |
F-Score9
WACC8.38%
ROIC/WACC0.71
Cap/Depr(3y)13.55%
Cap/Depr(5y)19.97%
Cap/Sales(3y)0.78%
Cap/Sales(5y)3%
Profit Quality(3y)106.32%
Profit Quality(5y)148.41%
High Growth Momentum
Growth
EPS 1Y (TTM)93.81%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%842.86%
EPS Next Y8.33%
EPS Next 2Y-5.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)44.23%
Revenue growth 3Y-7.15%
Revenue growth 5Y7.94%
Sales Q2Q%0.43%
Revenue Next Year6.17%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y74.8%
EBIT growth 3Y-18.01%
EBIT growth 5Y2.84%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y520.02%
FCF growth 3Y-11.65%
FCF growth 5Y4.32%
OCF growth 1Y491.19%
OCF growth 3Y-12.41%
OCF growth 5Y4.45%