| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
SWBI Stock Overview
Smith & Wesson Brands, Inc. designs, manufactures, and sells firearms worldwide.
Smith & Wesson Brands Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$13.78 |
| 52 Week High | US$39.61 |
| 52 Week Low | US$13.02 |
| Beta | 0.74 |
| 1 Month Change | -9.34% |
| 3 Month Change | -8.92% |
| 1 Year Change | -60.29% |
| 3 Year Change | 50.11% |
| 5 Year Change | -35.31% |
| Change since IPO | 748.00% |
Recent News & Updates
Smith & Wesson Brands' (NASDAQ:SWBI) Shareholders Will Receive A Bigger Dividend Than Last Year
The board of Smith & Wesson Brands, Inc. ( NASDAQ:SWBI ) has announced that it will be increasing its dividend on the...
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
| SWBI | US Leisure | US Market | |
|---|---|---|---|
| 7D | 5.2% | 2.1% | 1.6% |
| 1Y | -60.3% | -52.7% | -20.8% |
Return vs Industry: SWBI underperformed the US Leisure industry which returned -52.1% over the past year.
Return vs Market: SWBI underperformed the US Market which returned -20.4% over the past year.
Price Volatility
| SWBI volatility | |
|---|---|
| SWBI Average Weekly Movement | 8.4% |
| Leisure Industry Average Movement | 7.7% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: SWBI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: SWBI's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1852 | 1,719 | Mark Smith | https://www.smith-wesson.com |
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
| SWBI fundamental statistics | |
|---|---|
| Market Cap | US$630.62m |
| Earnings (TTM) | US$194.49m |
| Revenue (TTM) | US$864.13m |
3.2x
P/E Ratio0.7x
P/S RatioIs SWBI overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SWBI income statement (TTM) | |
|---|---|
| Revenue | US$864.13m |
| Cost of Revenue | US$479.56m |
| Gross Profit | US$384.56m |
| Other Expenses | US$190.07m |
| Earnings | US$194.49m |
Last Reported Earnings
Apr 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 4.25 |
| Gross Margin | 44.50% |
| Net Profit Margin | 22.51% |
| Debt/Equity Ratio | 0% |
How did SWBI perform over the long term?
See historical performance and comparisonDividends
2.9%
Current Dividend Yield8%
Payout RatioDoes SWBI pay a reliable dividends?
See SWBI dividend history and benchmarks| Smith & Wesson Brands dividend dates | |
|---|---|
| Ex Dividend Date | Jul 06 2022 |
| Dividend Pay Date | Jul 21 2022 |
| Days until Ex dividend | 6 days |
| Days until Dividend pay date | 21 days |
Does SWBI pay a reliable dividends?
See SWBI dividend history and benchmarksValuation
Is SWBI undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
5/6Valuation Score 5/6
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.
| What is SWBI's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$630.62m |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.6x |
| Enterprise Value/EBITDA | 1.9x |
| PEG Ratio | -0.07x |
Price to Earnings Ratio vs Peers
How does SWBI's PE Ratio compare to its peers?
| SWBI PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 13.5x | ||
CLAR Clarus | 27.7x | 29.2% | US$712.5m |
JOUT Johnson Outdoors | 11x | 25.6% | US$620.2m |
RGR Sturm Ruger | 7.5x | n/a | US$1.1b |
MBUU Malibu Boats | 7.7x | 6.1% | US$1.1b |
SWBI Smith & Wesson Brands | 3.2x | -44.3% | US$630.6m |
Price-To-Earnings vs Peers: SWBI is good value based on its Price-To-Earnings Ratio (3.2x) compared to the peer average (13.5x).
Price to Earnings Ratio vs Industry
How does SWBI's PE Ratio compare vs other companies in the US Leisure Industry?
Price-To-Earnings vs Industry: SWBI is good value based on its Price-To-Earnings Ratio (3.2x) compared to the US Leisure industry average (9.9x)
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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 3.2x |
| Fair PE Ratio | 3.6x |
Price-To-Earnings vs Fair Ratio: SWBI is good value based on its Price-To-Earnings Ratio (3.2x) compared to the estimated Fair Price-To-Earnings Ratio (3.6x).
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 ($13.78) is trading below our estimate of fair value ($27.46)
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
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-44.3%
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 (-44.3% per year).
Earnings vs Market: SWBI's earnings are forecast to decline over the next 3 years (-44.3% 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 (-17% per year).
High Growth Revenue: SWBI's revenue is forecast to decline over the next 3 years (-17% 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
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
41.6%
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.
Discover strong past performing companies
Financial Health
How is Smith & Wesson Brands's financial position?
Financial Health Score
6/6Financial 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 55.3%.
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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Dividend
What is Smith & Wesson Brands's current dividend yield, its reliability and sustainability?
Dividend Score
2/6Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.90%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: SWBI's dividend (2.9%) is higher than the bottom 25% of dividend payers in the US market (1.59%).
High Dividend: SWBI's dividend (2.9%) is low compared to the top 25% of dividend payers in the US market (4.25%).
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 (7.8%), 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.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Mark Smith (45 yo)
1.83yrs
Tenure
US$2,704,940
Compensation
Mr. Mark Peter Smith has been President and Chief Executive Officer of Smith & Wesson Brands, Inc. since August 24, 2020 and its Director since August 24, 2020. He served as Co-President and Co-Chief Execu...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD2.70M) is below average for companies of similar size in the US market ($USD4.00M).
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).
Ownership
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$630.619m
- Shares outstanding: 45.76m
- Website: https://www.smith-wesson.com
Number of Employees
Location
- Smith & Wesson Brands, Inc.
- 2100 Roosevelt Avenue
- Springfield
- Massachusetts
- 1104
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/29 00:00 |
| End of Day Share Price | 2022/06/29 00:00 |
| Earnings | 2022/04/30 |
| Annual Earnings | 2022/04/30 |
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.