* Note: Prices are in Million (M) USD.
Description:
Smith & Wesson Brands, Inc. designs, manufactures and sells firearms worldwide. The company is headquartered in Springfield, Massachusetts.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $18 M
Debt : $98 M
EBITDA : $55 M
Net Debt (Debt - Cash): $80 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Consumer discretionary
Industry: Aerospace & defense
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $47 M
Average Revenue: $548 M
Revenue Converted To Free Cash Flow (%): 8.6%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-04-30): $475 M
Revenue 5 Years Ago (2020-04-30): $678 M
Total Growth over 5 Years: -30.0%
5-Year Revenue CAGR (Historical): -6.9%
Forward 5-Year CAGR (Tapered): -6.2%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-04-30): $44 M
Share Count 5 Years Ago (2021-04-30): $55 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Message: Cannot calculate payout ratio because EPS is either 0 or negative.
Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 11.3%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $9
52-Week Low: $8
Threshold Price (15% Above 52-Week Low): $9
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $364 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share, latest positive annual) (2024-04-30): $0.36
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 17 points to above Smith & Wesson Brands Inc (SWBI) stock.
Last 16 Years Avg PE 14.42, Fair Value PE 12, Industry Based PE 18, RCFC Based PE 8.58, ROE Based PE 11.28, Risk-Free Anchored PE (25% MoS) 17.61. Based on these 6 values, average assigned is 13.65. The fair value of Smith & Wesson Brands Inc (SWBI) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
