SWK HOLDINGS CORP (SWKH) Stock Fundamental Analysis
USA - NASDAQ:SWKH - US78501P2039 - Common Stock
14.46 USD
-0.12 (-0.82%)
SWKH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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, but it does not seem to be growing. This makes SWKH very considerable 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
Looking at the Return On Assets, with a value of 6.10%, SWKH belongs to the top of the industry, outperforming 81.19% of the companies in the same industry.
SWKH has a Return On Equity (7.07%) which is comparable to the rest of the industry.
SWKH has a Return On Invested Capital of 7.09%. This is in the better half of the industry: SWKH outperforms 74.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SWKH is below the industry average of 7.65%.
The 3 year average ROIC (3.95%) for SWKH is below the current ROIC(7.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | 7.07% | ||
| ROIC | 7.09% |
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 38.99% is amongst the best of the industry. SWKH outperforms 88.12% of its industry peers.
In the last couple of years the Profit Margin of SWKH has declined.
The Operating Margin of SWKH (60.33%) is better than 90.10% of its industry peers.
SWKH's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.33% | ||
| PM (TTM) | 38.99% | ||
| 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.
Compared to 1 year ago, SWKH has less shares outstanding
SWKH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SWKH has an improved debt to assets ratio.
2.2 Solvency
SWKH has an Altman-Z score of -17.21. This is a bad value and indicates that SWKH is not financially healthy and even has some risk of bankruptcy.
SWKH has a worse Altman-Z score (-17.21) than 80.20% of its industry peers.
SWKH has a debt to FCF ratio of 1.10. This is a very positive value and a sign of high solvency as it would only need 1.10 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.10, SWKH belongs to the top of the industry, outperforming 83.17% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that SWKH is not too dependend on debt financing.
SWKH's Debt to Equity ratio of 0.13 is fine compared to the rest of the industry. SWKH outperforms 79.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.1 | ||
| Altman-Z | -17.21 |
ROIC/WACC0.87
WACC8.12%
2.3 Liquidity
SWKH has a Current Ratio of 3.17. This indicates that SWKH is financially healthy and has no problem in meeting its short term obligations.
SWKH's Current ratio of 3.17 is amongst the best of the industry. SWKH outperforms 86.14% of its industry peers.
A Quick Ratio of 3.17 indicates that SWKH has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.17, SWKH belongs to the top of the industry, outperforming 87.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 89.11% over the past year.
Measured over the past years, SWKH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.15% on average per year.
Looking at the last year, SWKH shows a very negative growth in Revenue. The Revenue has decreased by -14.27% in the last year.
The Revenue has been growing slightly by 7.94% on average over the past years.
EPS 1Y (TTM)89.11%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%8.57%
Revenue 1Y (TTM)-14.27%
Revenue growth 3Y-7.15%
Revenue growth 5Y7.94%
Sales Q2Q%-12.92%
3.2 Future
SWKH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.06% yearly.
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
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
With a Price/Earnings ratio of 7.57, the valuation of SWKH can be described as very cheap.
SWKH's Price/Earnings ratio is rather cheap when compared to the industry. SWKH is cheaper than 85.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. SWKH is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.44, SWKH is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWKH is on the same level as its industry peers.
SWKH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 12.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWKH is valued cheaper than 84.16% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SWKH is valued cheaply inside the industry as 91.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.06 | ||
| EV/EBITDA | 7.19 |
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)0.91
PEG (5Y)N/A
EPS Next 2Y-5.06%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 27.61%, SWKH is a good candidate for dividend investing.
SWKH's Dividend Yield is rather good when compared to the industry average which is at 4.86. 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 | 27.61% |
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 (9/19/2025, 12:15:01 PM)
14.46
-0.12 (-0.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners87.48%
Inst Owner Change-0.79%
Ins Owners5.2%
Ins Owner Change0.94%
Market Cap175.69M
Analysts82.86
Price Target18.87 (30.5%)
Short Float %0.41%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 27.61% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)115.05%
Min EPS beat(2)106.97%
Max EPS beat(2)123.12%
EPS beat(4)2
Avg EPS beat(4)37.16%
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)2.78%
PT rev (3m)2.78%
EPS NQ rev (1m)30.77%
EPS NQ rev (3m)-32%
EPS NY rev (1m)0%
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 | 7.57 | ||
| Fwd PE | 12.44 | ||
| P/S | 3.93 | ||
| P/FCF | 6.06 | ||
| P/OCF | 6 | ||
| P/B | 0.71 | ||
| P/tB | 0.71 | ||
| EV/EBITDA | 7.19 |
EPS(TTM)1.91
EY13.21%
EPS(NY)1.16
Fwd EY8.04%
FCF(TTM)2.39
FCFY16.51%
OCF(TTM)2.41
OCFY16.67%
SpS3.68
BVpS20.29
TBVpS20.29
PEG (NY)0.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.1% | ||
| ROE | 7.07% | ||
| ROCE | 9.66% | ||
| ROIC | 7.09% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 7.3% | ||
| OM | 60.33% | ||
| PM (TTM) | 38.99% | ||
| GM | N/A | ||
| FCFM | 64.94% |
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-Score7
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.1 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 27.21% | ||
| Cap/Sales | 0.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.69% | ||
| Profit Quality | 166.56% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.17 | ||
| Altman-Z | -17.21 |
F-Score7
WACC8.12%
ROIC/WACC0.87
Cap/Depr(3y)12.06%
Cap/Depr(5y)19.08%
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)89.11%
EPS 3Y-22.58%
EPS 5Y-10.15%
EPS Q2Q%8.57%
EPS Next Y8.33%
EPS Next 2Y-5.06%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-14.27%
Revenue growth 3Y-7.15%
Revenue growth 5Y7.94%
Sales Q2Q%-12.92%
Revenue Next Year6.17%
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y76.27%
EBIT growth 3Y-18.01%
EBIT growth 5Y2.84%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y195.69%
FCF growth 3Y-11.65%
FCF growth 5Y4.32%
OCF growth 1Y187.41%
OCF growth 3Y-12.41%
OCF growth 5Y4.45%