DB:SWS

Stock Analysis Report

American Outdoor Brands

Executive Summary

American Outdoor Brands Corporation designs, manufactures, and sells firearms worldwide.

Snowflake

Fundamentals

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has American Outdoor Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

20.1%

SWS

0.1%

DE Leisure

2.4%

DE Market


1 Year Return

-50.3%

SWS

15.8%

DE Leisure

2.3%

DE Market

Return vs Industry: SWS underperformed the German Leisure industry which returned 15.8% over the past year.

Return vs Market: SWS underperformed the German Market which returned 2.3% over the past year.


Shareholder returns

SWSIndustryMarket
7 Day20.1%0.1%2.4%
30 Day-0.6%-2.3%-0.2%
90 Day-25.0%-3.5%0.6%
1 Year-50.3%-50.3%18.3%15.8%5.5%2.3%
3 Year-73.3%-73.3%62.9%50.7%18.9%8.6%
5 Year-20.8%-20.8%120.8%96.7%44.8%25.1%

Price Volatility Vs. Market

How volatile is American Outdoor Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is American Outdoor Brands undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SWS (€6.22) is trading below our estimate of fair value (€13.77)

Significantly Undervalued: SWS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SWS is poor value based on its PE Ratio (43.4x) compared to the Leisure industry average (17.7x).

PE vs Market: SWS is poor value based on its PE Ratio (43.4x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: SWS is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: SWS is good value based on its PB Ratio (0.9x) compared to the XE Leisure industry average (2x).


Next Steps

Future Growth

How is American Outdoor Brands forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

54.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWS's forecast earnings growth (54.7% per year) is above the savings rate (0.2%).

Earnings vs Market: SWS's earnings (54.7% per year) are forecast to grow faster than the German market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SWS's revenue (3.1% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: SWS's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if SWS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has American Outdoor Brands performed over the past 5 years?

-17.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SWS's earnings have declined by -17% per year over the past 5 years.

Accelerating Growth: SWS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SWS had negative earnings growth (-71.1%) over the past year, making it difficult to compare to the Leisure industry average (11%).


Return on Equity

High ROE: SWS's Return on Equity (2%) is considered low.


Return on Assets

ROA vs Industry: SWS's Return on Assets is below or equal to the Leisure industry average last year.


Return on Capital Employed

ROCE Improving: SWS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is American Outdoor Brands's financial position?


Financial Position Analysis

Short Term Liabilities: SWS's short term assets ($307.9M) exceeds its short term liabilities ($164.4M)

Long Term Liabilities: SWS's short term assets (307.9M) exceeds its long term liabilities (164.9M)


Debt to Equity History and Analysis

Debt Level: SWS's debt to equity ratio (40.5%) is considered high

Reducing Debt: SWS's debt to equity ratio has reduced from 111.2% to 40.5% over the past 5 years.

Debt Coverage: SWS's debt is not well covered by operating cash flow (9.9%).

Interest Coverage: SWS's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: SWS has a high level of physical assets or inventory.

Debt Coverage by Assets: SWS's debt is covered by short term assets (assets are 1.717610x debt).


Next Steps

Dividend

What is American Outdoor Brands's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.9%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate SWS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SWS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SWS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SWS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SWS's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of American Outdoor Brands's salary, the management and board of directors tenure and is there insider trading?

8.0yrs

Average management tenure


CEO

P. Debney (51yo)

8.1yrs

Tenure

US$3,759,023

Compensation

Mr. P. James Debney has been the Chief Executive Officer and President of American Outdoor Brands Corp. (formerly, Smith & Wesson Holding Corporation) since September 27, 2011 and has been its Director sin ...


CEO Compensation Analysis

Compensation vs. Market: P.'s total compensation ($USD3.76M) is above average for companies of similar size in the German market ($USD809.46K).

Compensation vs Earnings: P.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

8.0yrs

Average Tenure

51yo

Average Age

Experienced Management: SWS's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

14.9yrs

Average Tenure

66yo

Average Age

Experienced Board: SWS's board of directors are seasoned and experienced ( 14.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jeffrey Buchanan (63yo)

    Executive VP

    • Tenure: 8.8yrs
    • Compensation: US$1.62m
  • Liz Sharp

    Vice President of Investor Relations

    • Tenure: 14.4yrs
  • Lane Tobiassen (56yo)

    President of the Firearms Division

    • Tenure: 3.2yrs
  • P. Debney (51yo)

    President

    • Tenure: 8.1yrs
    • Compensation: US$3.76m
  • John Dineen

    Chief Information Officer

    • Tenure: 0yrs
    • Compensation: US$329.00k
  • Deana McPherson (49yo)

    VP & Corporate Controller

    • Tenure: 12.3yrs
  • Mark Smith (43yo)

    President of Manufacturing Services Division

    • Tenure: 3.6yrs
    • Compensation: US$1.14m
  • Robert Cicero (52yo)

    Senior VP

    • Tenure: 8yrs
    • Compensation: US$1.15m
  • Brian Murphy (35yo)

    President of Outdoor Products & Accessories Division

    • Tenure: 2.8yrs
    • Compensation: US$899.83k
  • Lewis Hornsby

    President of Logistics & Customer Service Division

    • Tenure: 2.3yrs

Board Members

  • Barry Monheit (72yo)

    Chairman of the Board

    • Tenure: 14.9yrs
    • Compensation: US$207.82k
  • Mitch Saltz (66yo)

    Director

    • Tenure: 21yrs
    • Compensation: US$171.52k
  • Robert Scott (73yo)

    Vice Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$205.14k
  • Anita Britt (55yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$165.01k
  • John Furman (75yo)

    Director

    • Tenure: 15.5yrs
    • Compensation: US$192.50k
  • Marie Wadecki (70yo)

    Director

    • Tenure: 17.1yrs
    • Compensation: US$186.00k
  • Michael Golden (65yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$155.00k
  • P. Debney (51yo)

    President

    • Tenure: 8.1yrs
    • Compensation: US$3.76m
  • Greg Gluchowski (54yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$165.00k

Company Information

American Outdoor Brands Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Outdoor Brands Corporation
  • Ticker: SWS
  • Exchange: DB
  • Founded: 1852
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$377.722m
  • Listing Market Cap: US$342.745m
  • Shares outstanding: 54.82m
  • Website: https://www.aob.com

Number of Employees


Location

  • American Outdoor Brands Corporation
  • 2100 Roosevelt Avenue
  • Springfield
  • Massachusetts
  • 1104
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AOBCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2000
SWSDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2000
0HEMLSE (London Stock Exchange)YesCommon StockGBUSDApr 2000

Biography

American Outdoor Brands Corporation designs, manufactures, and sells firearms worldwide. The company’s Firearms segment offers handguns, long guns, handcuffs, suppressors, and other firearm-related product ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:49
End of Day Share Price2019/10/14 00:00
Earnings2019/07/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.