Smith & Wesson Brands, Inc. (SWBI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Cadre Holdings, Inc.

Virgin Galactic Holdings, Inc.

Rocket Lab USA, Inc.

Smith & Wesson Brands, Inc.

Spirit AeroSystems Holdings, Inc.

Archer Aviation, Inc.

Why is Smith & Wesson Brands, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of -12.84% over the last 5 years

The company has declared negative results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At USD 2.74 MM has Fallen at -42.23%
NET PROFIT(Q) At USD 1.75 MM has Fallen at -46.25%
ROCE(HY) Lowest at 2.71%

With ROE of 2.82%, it has a very expensive valuation with a 2.71 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 55.51%, its profits have fallen by -73.5%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Smith & Wesson Brands, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Smith & Wesson Brands, Inc.

58.13%

-0.18

46.49%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-12.84%

EBIT Growth (5y)

-37.41%

EBIT to Interest (avg)

53.55

Debt to EBITDA (avg)

0.20

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

1.12

Tax Ratio

30.24%

Dividend Payout Ratio

174.03%

Pledged Shares

Institutional Holding

59.51%

ROCE (avg)

71.62%

ROE (avg)

35.79%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.71

EV to EBIT

57.41

EV to EBITDA

20.90

EV to Capital Employed

2.46

EV to Sales

2.25

PEG Ratio

Dividend Yield

2.35%

ROCE (Latest)

4.28%

ROE (Latest)

2.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 303.74%

-23What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 2.74 MM has Fallen at -42.23%

NET PROFIT(Q)

At USD 1.75 MM has Fallen at -46.25%

ROCE(HY)

Lowest at 2.71%

RAW MATERIAL COST(Y)

Grown by 8.86% (YoY

CASH AND EQV(HY)

Lowest at USD 48.5 MM

DEBT-EQUITY RATIO (HY)

Highest at 26.5 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.82 times

INTEREST(Q)

Highest at USD 1.98 MM

Here's what is working for Smith & Wesson Brands, Inc.

Dividend Payout Ratio

Highest at 303.74%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Smith & Wesson Brands, Inc.

Pre-Tax Profit

At USD 2.74 MM has Fallen at -42.23%

over average net sales of the previous four periods of USD 4.74 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 1.75 MM has Fallen at -46.25%

over average net sales of the previous four periods of USD 3.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 1.98 MM has Grown at 64.48%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 1.98 MM

in the last five periods and Increased by 64.48% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv

Lowest at USD 48.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 26.5 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 8.86% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales