ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Smith & Wesson Brands, Inc. ?
1
High Management Efficiency with a high ROE of 35.79%
2
The company is Net-Debt Free
3
Poor long term growth as Net Sales has grown by an annual rate of -13.74% over the last 5 years
4
With a growth in Net Profit of 332.24%, the company declared Very Positive results in Apr 26
- OPERATING CASH FLOW(Y) Highest at USD 114.2 MM
- RAW MATERIAL COST(Y) Fallen by -2.6% (YoY)
- DEBTORS TURNOVER RATIO(HY) Highest at 10.42 times
5
With ROE of 3.29%, it has a very expensive valuation with a 2.85 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 47.79%, its profits have fallen by -63.9%
6
High Institutional Holdings at 70.62%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 11.11% over the previous quarter.
7
Market Beating Performance
- The stock has generated a return of 47.79% in the last 1 year, much higher than market (S&P 500) returns of 25.41%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Smith & Wesson Brands, Inc. should be less than 10%
- Overall Portfolio exposure to Aerospace & Defense should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Smith & Wesson Brands, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Smith & Wesson Brands, Inc.
47.79%
-0.02
44.45%
S&P 500
25.41%
1.92
13.25%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-13.74%
EBIT Growth (5y)
-38.57%
EBIT to Interest (avg)
53.55
Debt to EBITDA (avg)
0.20
Net Debt to Equity (avg)
0.15
Sales to Capital Employed (avg)
1.10
Tax Ratio
30.24%
Dividend Payout Ratio
174.03%
Pledged Shares
0
Institutional Holding
59.51%
ROCE (avg)
71.62%
ROE (avg)
35.79%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
87
Industry P/E
Price to Book Value
2.85
EV to EBIT
48.22
EV to EBITDA
20.13
EV to Capital Employed
2.62
EV to Sales
2.24
PEG Ratio
NA
Dividend Yield
2.21%
ROCE (Latest)
5.43%
ROE (Latest)
3.29%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 114.2 MM
RAW MATERIAL COST(Y)
Fallen by -2.6% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 10.42 times
NET SALES(Q)
Highest at USD 178.39 MM
OPERATING PROFIT(Q)
Highest at USD 28.92 MM
OPERATING PROFIT MARGIN(Q)
Highest at 16.21 %
PRE-TAX PROFIT(Q)
Highest at USD 20.79 MM
NET PROFIT(Q)
Highest at USD 16.22 MM
EPS(Q)
Highest at USD 0.36
-4What is not working for the Company
INTEREST(HY)
At USD 3.37 MM has Grown at 36.32%
Here's what is working for Smith & Wesson Brands, Inc.
Pre-Tax Profit
At USD 20.79 MM has Grown at 359.03%
over average net sales of the previous four periods of USD 4.53 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 16.22 MM has Grown at 441.92%
over average net sales of the previous four periods of USD 2.99 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
At USD 178.39 MM has Grown at 46.76%
over average net sales of the previous four periods of USD 121.55 MMMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Operating Cash Flow
Highest at USD 114.2 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 178.39 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 28.92 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 16.21 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 20.79 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 16.22 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.36
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Highest at 10.42 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -2.6% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Smith & Wesson Brands, Inc.
Interest
At USD 3.37 MM has Grown at 36.32%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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