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Smith & Wesson Brands
(NASDAQ:SWBI)
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Rating:56Neutral
Price Target:
$16.50
▲(11.11% Upside)
Action:Reiterated
Date:06/19/26
The score is held back primarily by weakened profitability versus prior-cycle peaks and inconsistent cash flow history despite a strong, low-leverage balance sheet. Technicals are supportive with the stock above major moving averages, but mixed momentum limits conviction. Valuation is a notable headwind due to the high P/E, while the latest earnings call adds modest support via upbeat guidance and improving near-term operational trends.
Positive Factors
Conservative balance sheet / low leverage
Zero reported debt in 2026 and historically low leverage give Smith & Wesson durable financial flexibility. This supports capital allocation for product development, dividends, opportunistic buybacks or further deleveraging and cushions the business through cyclical demand swings in the firearms market.
Negative Factors
Sharp margin compression vs 2021–2022 peaks
A structural fall in margins versus prior-cycle peaks signals weaker underlying earnings power. This may reflect permanent mix shifts, higher input/tariff costs, or reduced pricing leverage, constraining long-term ability to fund growth initiatives, return capital or rebuild prior ROE levels.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Zero reported debt in 2026 and historically low leverage give Smith & Wesson durable financial flexibility. This supports capital allocation for product development, dividends, opportunistic buybacks or further deleveraging and cushions the business through cyclical demand swings in the firearms market.
Read all positive factors
Smith & Wesson Brands Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, highlighting which areas are driving growth and profitability, and where there might be opportunities or challenges.
Breaks down revenue across different business segments, highlighting which areas are driving growth and profitability, and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlySmith & Wesson Brands (SWBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$697.52M
Dividend Yield5.1%
Average Volume (3M)896.60K
Price to Earnings (P/E)38.0
Beta (1Y)0.47
Revenue Growth10.75%
EPS Growth35.88%
CountryUS
Employees1,501
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.41
Shares Outstanding44,727,070
10 Day Avg. Volume559,713
30 Day Avg. Volume896,601
Financial Highlights & Ratios
PEG Ratio0.93
Price to Book (P/B)1.84
Price to Sales (P/S)1.32
P/FCF Ratio7.66
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue1.11
Enterprise Value/Gross Profit4.13
Enterprise Value/Ebitda9.62
Forecast
1Y Price Target
$16.50Price Target Upside11.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.49
Revenue Forecast (FY)$519.35M
Smith & Wesson Brands Business Overview & Revenue Model
Company Description
Smith & Wesson Brands, Inc. (SWBI) is a leading global enterprise engaged in the design, production, and worldwide sale of firearms. Their extensive product range features various handguns, including revolvers and semi-automatic pistols, along wit...
How the Company Makes Money
Smith & Wesson Brands primarily makes money by selling firearms—especially handguns (pistols and revolvers)—to a network of customers that typically includes wholesalers, distributors, and retailers who then sell to end consumers, as well as sales...
Smith & Wesson Brands Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The call was largely positive: the company reported strong top-line growth (+17.1%), improved profitability (EBITDAS +~21%, adjusted EPS up materially), robust handgun unit growth (+28%) and meaningful cash generation turnaround (operating cash flow of $20.5M vs a use of $9.8M prior-year). Management highlighted successful new-product adoption, ASP expansion, debt paydown and a constructive near-term outlook (Q4 sales guide +10–12%). Offsetting items include significant weakness in long guns (shipments -25%, ASP -11%), a tariff-related 160 bps drag on gross margin, rising operating expenses, a modest cash balance ($23.5M) versus remaining borrowings, and some channel inventory unit variability. On balance, the positive operational and financial momentum, guidance, and balance-sheet improvement outweigh the listed challenges.Positive Updates
Revenue Growth
Net sales of $135.7 million, up $19.8 million or 17.1% year-over-year, driven by new handgun products and stronger sell-through.
Negative Updates
Long Gun Weakness
Long gun shipments into the sporting goods channel declined 25% year-over-year and overall long gun mix declined 5.6%; long gun ASPs were $535, down about 11% versus the prior year, primarily due to prior-year channel fill of higher-priced 1854 lever-action rifle introductions and relative outperformance of the hunting segment.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Net sales of $135.7 million, up $19.8 million or 17.1% year-over-year, driven by new handgun products and stronger sell-through.
Read all positive updates
Company Guidance
Management guided Q4 sales to be up 10%–12% versus Q4 FY2025 with a small reduction in channel inventory, noting 8 additional operating days vs. Q3 and increased production to meet demand; they expect Q4 gross margin to rise by “several” percentage points over Q3 (and ~1–2 points above last year’s Q4) while operating expenses are likely ~10% higher than last year’s Q4 due to higher R&D, stock‑based compensation and profit‑related costs. They also forecast continued healthy cash generation, an effective tax rate of ~29%, full‑year capex of $25–30 million, and confirmed a $0.13 quarterly dividend (record March 19, pay April 2).Smith & Wesson Brands Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
74
Positive
Cash Flow
57
Neutral
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 523.85M | 474.66M | 535.83M | 479.24M | 864.13M |
| Gross Profit | 141.10M | 127.18M | 158.09M | 154.54M | 374.56M |
| EBITDA | 61.19M | 55.71M | 84.01M | 81.10M | 281.64M |
| Net Income | 18.48M | 13.43M | 39.61M | 36.88M | 194.49M |
Balance Sheet | |||||
| Total Assets | 512.77M | 559.61M | 577.43M | 541.29M | 497.48M |
| Cash, Cash Equivalents and Short-Term Investments | 33.35M | 25.23M | 60.84M | 53.56M | 120.73M |
| Total Debt | 53.14M | 114.73M | 77.80M | 64.46M | 40.28M |
| Total Liabilities | 136.21M | 187.16M | 177.51M | 156.67M | 136.96M |
| Stockholders Equity | 376.56M | 372.45M | 399.91M | 384.62M | 360.51M |
Cash Flow | |||||
| Free Cash Flow | 90.35M | -29.02M | 15.79M | -73.17M | 113.56M |
| Operating Cash Flow | 114.19M | -7.22M | 106.74M | 16.73M | 137.81M |
| Investing Cash Flow | -28.24M | -19.17M | -81.49M | -89.78M | -24.12M |
| Financing Cash Flow | -83.00M | -9.21M | -17.97M | 5.88M | -105.99M |
Smith & Wesson Brands Technical Analysis
Positive
14.85
Price Trends
15.02
Positive
14.36
Positive
12.08
Positive
Market Momentum
0.15
Negative
55.90
Neutral
64.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWBI, the sentiment is Positive. The current price of 14.85 is below the 20-day moving average (MA) of 15.18, below the 50-day MA of 15.02, and above the 200-day MA of 12.08, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 55.90 is Neutral, neither overbought nor oversold. The STOCH value of 64.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWBI.
Smith & Wesson Brands Risk Analysis
Smith & Wesson Brands disclosed 33 risk factors in its most recent earnings report. Smith & Wesson Brands reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Smith & Wesson Brands Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $702.54M | 60.09 | 10.08% | 2.53% | 18.18% | 92.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $616.88M | -53.59 | -4.24% | 1.92% | 3.20% | -139.32% | |
58 Neutral | $288.09M | -43.97 | -35.04% | ― | ― | ― | |
56 Neutral | $697.52M | 37.99 | 5.04% | 5.10% | 10.75% | 35.88% | |
53 Neutral | $87.71M | -25.51 | 13.82% | ― | 5.15% | -124.82% | |
49 Neutral | $35.05M | -14.84 | -5.07% | ― | -26.36% | -260.65% |
* Industrials Sector Average
SWBI
Smith & Wesson Brands
15.66
7.60
94.20%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.