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Smith & Wesson Brands NasdaqGS:SWBI Stock Report

Last Price


Market Cap







26 Jun, 2022


Company Financials +
SWBI fundamental analysis
Snowflake Score
Future Growth0/6
Past Performance2/6
Financial Health6/6

SWBI Stock Overview

Smith & Wesson Brands, Inc. designs, manufactures, and sells firearms worldwide.

Smith & Wesson Brands Competitors













Price History & Performance

Summary of all time highs, changes and price drops for Smith & Wesson Brands
Historical stock prices
Current Share PriceUS$16.44
52 Week HighUS$39.61
52 Week LowUS$13.02
1 Month Change8.73%
3 Month Change4.51%
1 Year Change-45.96%
3 Year Change82.46%
5 Year Change-25.81%
Change since IPO911.69%

Recent News & Updates

Jun 22

Smith & Wesson Brands Stock: Time For Bulls To Fire Their Shot

SWBI is valued as a company on the verge of bankruptcy. This is despite it being a profitable market leader with a strong balance sheet and a sound growth strategy. SWBI’s key strengths lie in its pristine balance sheet and a sound growth strategy that allows it to capture cyclical increases in demand without sacrificing margins and eroding shareholder value. Regulatory risks following incidents of gun violence are overstated. Not only are blanket bans unconstitutional, but they're also not feasible from a political standpoint. Now is the time for bulls to pull the trigger and buy this stock for potentially exciting returns.

Shareholder Returns

SWBIUS LeisureUS Market

Return vs Industry: SWBI exceeded the US Leisure industry which returned -50.4% over the past year.

Return vs Market: SWBI underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is SWBI's price volatile compared to industry and market?
SWBI volatility
SWBI Average Weekly Movement7.5%
Leisure Industry Average Movement7.6%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: SWBI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SWBI's weekly volatility (7%) has been stable over the past year.

About the Company

18522,238Mark Smith

Smith & Wesson Brands, Inc. designs, manufactures, and sells firearms worldwide. The company offers handguns, including revolvers and pistols; long guns, such as modern sporting rifles, bolt action rifles; handcuffs; suppressors; and other firearm-related products under the Smith & Wesson, M&P, and Gemtech brands. It also provides manufacturing services comprising forging, heat treating, rapid prototyping, tooling, finishing, plating, machining, and custom plastic injection molding to other businesses under the Smith & Wesson and Smith & Wesson Precision Components brand names; and sells parts purchased through third parties.

Smith & Wesson Brands Fundamentals Summary

How do Smith & Wesson Brands's earnings and revenue compare to its market cap?
SWBI fundamental statistics
Market CapUS$752.35m
Earnings (TTM)US$194.49m
Revenue (TTM)US$864.13m


P/E Ratio


P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SWBI income statement (TTM)
Cost of RevenueUS$489.56m
Gross ProfitUS$374.56m
Other ExpensesUS$180.07m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date


Earnings per share (EPS)4.25
Gross Margin43.35%
Net Profit Margin22.51%
Debt/Equity Ratio0%

How did SWBI perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio
We’ve recently updated our valuation analysis.


Is SWBI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score


Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SWBI?

Other financial metrics that can be useful for relative valuation.

SWBI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA2.4x
PEG Ratio-0.09x

Price to Earnings Ratio vs Peers

How does SWBI's PE Ratio compare to its peers?

SWBI PE Ratio vs Peers
The above table shows the PE ratio for SWBI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14x

Price-To-Earnings vs Peers: SWBI is good value based on its Price-To-Earnings Ratio (3.9x) compared to the peer average (14x).

Price to Earnings Ratio vs Industry

How does SWBI's PE Ratio compare vs other companies in the U.S. Leisure Industry?

Price-To-Earnings vs Industry: SWBI is good value based on its Price-To-Earnings Ratio (3.9x) compared to the US Leisure industry average (10.3x)

Price to Earnings Ratio vs Fair Ratio

What is SWBI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SWBI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.9x
Fair PE Ratio3.8x

Price-To-Earnings vs Fair Ratio: SWBI is expensive based on its Price-To-Earnings Ratio (3.9x) compared to the estimated Fair Price-To-Earnings Ratio (3.8x).

Share Price vs Fair Value

What is the Fair Price of SWBI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SWBI ($16.44) is trading below our estimate of fair value ($27.62)

Significantly Below Fair Value: SWBI is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: SWBI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Smith & Wesson Brands forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score


Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWBI's earnings are forecast to decline over the next 3 years (-43.3% per year).

Earnings vs Market: SWBI's earnings are forecast to decline over the next 3 years (-43.3% per year).

High Growth Earnings: SWBI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SWBI's revenue is expected to decline over the next 3 years (-16.8% per year).

High Growth Revenue: SWBI's revenue is forecast to decline over the next 3 years (-16.8% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

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

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Past Performance

How has Smith & Wesson Brands performed over the past 5 years?

Past Performance Score


Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SWBI has a high level of non-cash earnings.

Growing Profit Margin: SWBI's current net profit margins (22.5%) are lower than last year (23%).

Past Earnings Growth Analysis

Earnings Trend: SWBI's earnings have grown significantly by 41.6% per year over the past 5 years.

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

Earnings vs Industry: SWBI had negative earnings growth (-20.1%) over the past year, making it difficult to compare to the Leisure industry average (27%).

Return on Equity

High ROE: SWBI's Return on Equity (53.9%) is considered outstanding.

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Financial Health

How is Smith & Wesson Brands's financial position?

Financial Health Score


Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SWBI's short term assets ($327.6M) exceed its short term liabilities ($88.9M).

Long Term Liabilities: SWBI's short term assets ($327.6M) exceed its long term liabilities ($48.0M).

Debt to Equity History and Analysis

Debt Level: SWBI is debt free.

Reducing Debt: SWBI has no debt compared to 5 years ago when its debt to equity ratio was 55.2%.

Debt Coverage: SWBI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SWBI has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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What is Smith & Wesson Brands's current dividend yield, its reliability and sustainability?

Dividend Score


Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SWBI's dividend (2.43%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: SWBI's dividend (2.43%) is low compared to the top 25% of dividend payers in the US market (4.24%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SWBI has been paying a dividend for less than 10 years.

Growing Dividend: SWBI's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7%), SWBI's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.1%), SWBI's dividend payments are well covered by cash flows.

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How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Mark Smith (45 yo)





Mr. Mark Peter Smith has been President and Chief Executive Officer of Smith & Wesson Brands, Inc. since August 24, 2020 and its Director since August 24, 2020. He served as Co-President and Co-Chief Execu...

CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD2.70M) is below average for companies of similar size in the US market ($USD4.05M).

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

Leadership Team

Experienced Management: SWBI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: SWBI's board of directors are seasoned and experienced ( 10.9 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Smith & Wesson Brands, Inc.'s employee growth, exchange listings and data sources

Key Information

  • Name: Smith & Wesson Brands, Inc.
  • Ticker: SWBI
  • Exchange: NasdaqGS
  • Founded: 1852
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Implied Market Cap: US$752.350m
  • Shares outstanding: 45.76m
  • Website:

Number of Employees


  • Smith & Wesson Brands, Inc.
  • 2100 Roosevelt Avenue
  • Springfield
  • Massachusetts
  • 1104
  • United States


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Annual Earnings2022/04/30

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.