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
Positive results in Jul 26
- OPERATING CASH FLOW(Y) Highest at USD 113.46 MM
- NET SALES(HY) At USD 290.98 MM has Grown at 28.84%
- NET PROFIT(HY) Higher at USD 18.76 MM
5
With ROE of 3.29%, it has a 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 48.84%, its profits have fallen by -63.9%
6
High Institutional Holdings at 79.57%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 8.95% over the previous quarter.
7
Market Beating Performance
- The stock has generated a return of 48.84% in the last 1 year, much higher than market (S&P 500) returns of 16.06%
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.
48.84%
-0.29
44.60%
S&P 500
16.06%
1.22
13.16%
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 Trend18What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 113.46 MM
NET SALES(HY)
At USD 290.98 MM has Grown at 28.84%
NET PROFIT(HY)
Higher at USD 18.76 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 228.47%
RAW MATERIAL COST(Y)
Fallen by -10.86% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 12.72 %
INVENTORY TURNOVER RATIO(HY)
Highest at 2.08 times
DEBTORS TURNOVER RATIO(HY)
Highest at 14.66 times
-9What is not working for the Company
NET PROFIT(Q)
At USD 2.54 MM has Fallen at -44.36%
NET SALES(Q)
At USD 112.59 MM has Fallen at -14.03%
PRE-TAX PROFIT(Q)
At USD 3.94 MM has Fallen at -36.23%
Here's what is working for Smith & Wesson Brands, Inc.
Operating Cash Flow
Highest at USD 113.46 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Debt-Equity Ratio
Lowest at 12.72 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 2.08 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 14.66 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend Payout Ratio
Highest at 228.47%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -10.86% (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.
Net Profit
At USD 2.54 MM has Fallen at -44.36%
over average net sales of the previous four periods of USD 4.56 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Net Sales
At USD 112.59 MM has Fallen at -14.03%
over average net sales of the previous four periods of USD 130.96 MMMOJO Watch
Near term sales trend is very negative
Net Sales (USD MM)
Pre-Tax Profit
At USD 3.94 MM has Fallen at -36.23%
over average net sales of the previous four periods of USD 6.18 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
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