17.38 USD
-0.07 (-0.4%)
SWKH gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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.
- 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 (7.85%) than 82.47% of its industry peers.
- SWKH has a Return On Equity (8.94%) which is comparable to the rest of the industry.
- The Return On Invested Capital of SWKH (7.71%) is better 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 3 year average ROIC (3.95%) for SWKH is below the current ROIC(7.71%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 50.36%. This is amongst the best in the industry. SWKH outperforms 91.75% of its industry peers.
- In the last couple of years the Profit Margin of SWKH has declined.
- With an excellent Operating Margin value of 66.71%, SWKH belongs to the best 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.
- Compared to 1 year ago, SWKH has less shares outstanding
- Compared to 5 years ago, SWKH has less shares outstanding
- Compared to 1 year ago, SWKH has an improved debt to assets ratio.
2.2 Solvency
- SWKH has an Altman-Z score of -16.00. 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 (-16.00) than 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 76.29% 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 73.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | -16 |
ROIC/WACC0.92
WACC8.35%
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.
- SWKH has a Current ratio of 5.68. This is amongst the best in the industry. SWKH outperforms 94.85% of its industry peers.
- A Quick Ratio of 5.68 indicates that SWKH has no problem at all paying its short term obligations.
- The Quick ratio of SWKH (5.68) is better than 94.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.68 | ||
| Quick Ratio | 5.68 |
3. Growth
3.1 Past
- SWKH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 121.43%, which is quite impressive.
- 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 -15.74% in the last year.
- 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
- The Price/Earnings ratio is 8.01, which indicates a very decent valuation of SWKH.
- 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.
- The average S&P500 Price/Earnings ratio is at 27.21. SWKH is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 8.11, which indicates a very decent valuation of SWKH.
- 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 | 8.01 | ||
| 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 77.32% 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 | 9.03 | ||
| EV/EBITDA | 7.73 |
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
- 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.
- Compared to an average S&P500 Dividend Yield of 1.81, SWKH pays a better dividend.
| 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.