NASDAQ
SWBI
Last Price
US $14.34
KEY FIGURES
MKT CAP
$0.6B
EPS
TTM
$0.42
EPS Growth (1Y)
36.67%
PEG
TTM
-
P/E
TTM
34.55x
P/S
TTM
1.22x
YIELD
3.63%
GROWTH (5Y CAGR)
Profit margin
Current Ratio
Capital Returns
3.48%
Return on equity
ROIC: 3.38%
Valuation History
31.8X
Price to Earnings
EV/EBITDA: 9.2X
Cash flow
Profit margin
Revenue
-13.13%
EBITDA
-29.46%
Cash flow
-20.95%
Cash Flow (DCF)
Fair Value
Market $14.34
—
Default assumptions
EBITDA Multiple
Fair Value
Market $14.34
-52.86%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Cash flow to debt coverage
Smith & Wesson Brands, Inc. cash flow to debt ratio of 214.89% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Free cash flow growth
Smith & Wesson Brands, Inc.'s free cash flow has increased -411.40% from $-29.02M last year to $90.35M, signaling increasing performance
Debt-to-equity ratio
Smith & Wesson Brands, Inc.'s debt to equity ratio is 0.14, which means that the company's assets are healthy financed, signaling financial stability.
Debt-to-equity trend
Smith & Wesson Brands, Inc.'s debt has decreased relative to shareholder equity from 0.31 last year to 0.14 today, signaling strengthened financials
Net debt to EBITDA
Smith & Wesson Brands, Inc. has a net debt to EBITDA ratio of 0.32x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Interest coverage
Smith & Wesson Brands, Inc.'s interest coverage ratio of 4.46 indicates that earnings with good margin can cover interest payments on company debt
Profit margin growth
Smith & Wesson Brands, Inc.'s profit margin has increased (24.74%) in the last year from 2.83% to 3.53%, signaling increasing performance
Current ratio
Smith & Wesson Brands, Inc.'s short-term assets of $241.40M exceed its short-term liabilities of $75.37M
Return on assets
Smith & Wesson Brands, Inc.'s return on assets of 3.60% is lower than the 5.00% threshold, indicating inefficient asset utilization
Return on equity
Smith & Wesson Brands, Inc.'s return on equity of 5.04%, is lower than 15.00%, indicating bad performance
Earnings quality
Smith & Wesson Brands, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Earnings stability
Smith & Wesson Brands, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings
Positive free cash flow
Smith & Wesson Brands, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Free cash flow yield
Smith & Wesson Brands, Inc. has a free cash flow yield of 14.22%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Earnings growth
Smith & Wesson Brands, Inc.'s yearly earnings has increased 37.66% since last year from $13.43M to $18.48M, signaling increasing performance
Revenue growth
Smith & Wesson Brands, Inc.'s yearly revenue has increased 10.36% since last year from $474.66M to $523.85M, signaling increasing performance
Return on invested capital
ROIC 4.90% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
3-year revenue CAGR
Smith & Wesson Brands, Inc.'s 3-year revenue CAGR of 3.01% is positive, indicating growing revenue over the past 3 years
Revenue consistency
Smith & Wesson Brands, Inc. had revenue growth in only 2 out of 5 years, indicating inconsistent revenue performance
Return on equity consistency
Smith & Wesson Brands, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity
Cash Flow Valuation (DCF)
Smith & Wesson Brands, Inc. has insufficient data to evaluate this check.
Earnings yield (TTM)
Smith & Wesson Brands, Inc. has an earnings yield of 2.92%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
EBITDA Valuation
Smith & Wesson Brands, Inc. is overvalued relative to its fair value price of 6.76 based on EBITDA multiple model
EV/EBITDA (FY)
Smith & Wesson Brands, Inc. has an EV/EBITDA ratio of 10.71x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
PEG ratio (TTM/FY)
Smith & Wesson Brands, Inc.'s earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.
Price-to-book ratio (FY)
Smith & Wesson Brands, Inc. has a price-to-book ratio of 1.68x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Price-to-sales ratio (TTM)
Smith & Wesson Brands, Inc. has a price-to-sales ratio of 1.21x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue