Smith & Wesson Brands, Inc.
Smith & Wesson Brands, Inc. Fundamental Analysis
Smith & Wesson Brands, Inc. (SWBI) shows weak financial fundamentals with a PE ratio of 52.27, profit margin of 2.12%, and ROE of 2.71%. The company generates $0.5B in annual revenue with strong year-over-year growth of 11.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SWBI's fundamental strength across five key dimensions:
Efficiency Score
WeakSWBI struggles to generate sufficient returns from assets.
Valuation Score
ModerateSWBI shows balanced valuation metrics.
Growth Score
ModerateSWBI shows steady but slowing expansion.
Financial Health Score
ExcellentSWBI maintains a strong and stable balance sheet.
Profitability Score
ModerateSWBI maintains healthy but balanced margins.
Key Financial Metrics
Is SWBI Expensive or Cheap?
P/E Ratio
SWBI trades at 52.27 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SWBI's PEG of -2.82 indicates potential undervaluation.
Price to Book
The market values Smith & Wesson Brands, Inc. at 1.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.03 times EBITDA. This is generally considered low.
How Well Does SWBI Make Money?
Net Profit Margin
For every $100 in sales, Smith & Wesson Brands, Inc. keeps $2.12 as profit after all expenses.
Operating Margin
Core operations generate 4.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.71 in profit for every $100 of shareholder equity.
ROA
Smith & Wesson Brands, Inc. generates $1.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Smith & Wesson Brands, Inc. produces operating cash flow of $50.26M, showing steady but balanced cash generation.
Free Cash Flow
Smith & Wesson Brands, Inc. produces free cash flow of $36.55M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.82 in free cash annually.
FCF Yield
SWBI converts 7.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
52.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.82
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SWBI Stacks Against Its Sector Peers
| Metric | SWBI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 52.27 | 26.49 | Worse (Expensive) |
| ROE | 2.71% | 1307.00% | Weak |
| Net Margin | 2.12% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.34 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 4.98 | 10.48 | Strong Liquidity |
| ROA | 1.81% | -1549793.00% (disorted) | Weak |
SWBI outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Smith & Wesson Brands, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-0.16%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
155.87%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
120.96%
Industry Style: Cyclical, Value, Infrastructure
High Growth