Education
About Us
Working with TipRanks
Follow Us
Smith & Wesson Brands, Inc. (SWBI)
NASDAQ:SWBI
Top Page
Smith & Wesson Brands
(NASDAQ:SWBI)
Select Model
Select Model
Rating:64Neutral
Price Target:
$12.50
▲(5.40% Upside)
Action:ReiteratedDate:12/09/25
Smith & Wesson Brands' overall score is driven by strong financial resilience and operational efficiency despite revenue and profitability challenges. Technical indicators suggest overbought conditions, while valuation metrics indicate the stock may be overvalued. The earnings call highlighted both strengths in product innovation and inventory management, and challenges in sales and margins.
Positive Factors
Brand & Market Position
Smith & Wesson's long-standing brand, product breadth and established channels into law enforcement, military and retail provide durable pricing power and customer loyalty. This supports stable demand, distributor relationships and resilience across several quarters.
New Product Adoption
Nearly 40% of quarterly sales coming from new products indicates effective innovation and successful commercialization. That mix shift supports higher ASPs, diversifies revenue sources, and can sustain unit growth and margin recovery over the medium term.
Cash Generation & Inventory Discipline
Strong operating cash flow with materially reduced inventory shows improving working-capital efficiency and cash conversion. Coupled with a conservative leverage profile, this strengthens liquidity and ability to invest in R&D, product rollout, or weather demand variability.
Negative Factors
Declining Revenue Trends
Revenue declines signal persistent end-market weakness or share pressure; continued top-line contraction can limit fixed-cost absorption and constrain reinvestment. If trends persist across quarters, the company's ability to restore margins and scale profitably is impaired.
Gross Margin Compression
Margin compression from lower production absorption and other pressures reduces operating leverage. Sustained weaker gross margins erode operating profitability and free cash flow potential, forcing tougher pricing or cost cuts to preserve long-term earnings power.
Rising Tariff Cost Headwinds
Increasing tariff exposure represents an external cost shock that can persist for quarters. Unless fully passed to buyers, tariffs compress margins and limit pricing flexibility; prolonged tariff pressure could require structural sourcing changes or margin recovery strategies.
Smith & Wesson Brands (SWBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$534.37M
Dividend Yield5.1%
Average Volume (3M)598.95K
Price to Earnings (P/E)55.5
Beta (1Y)0.52
Revenue Growth-9.08%
EPS Growth-71.62%
CountryUS
Employees1,501
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.08
Shares Outstanding44,493,744
10 Day Avg. Volume821,562
30 Day Avg. Volume598,947
Financial Highlights & Ratios
PEG Ratio-0.48
Price to Book (P/B)1.13
Price to Sales (P/S)0.88
P/FCF Ratio-14.46
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit5.26
Enterprise Value/Ebitda12.21
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.22
Revenue Forecast (FY)$477.56M
Smith & Wesson Brands Business Overview & Revenue Model
Company DescriptionSmith & Wesson Brands, Inc. designs, manufactures, and sells firearms worldwide. The company offers handguns, including revolvers and pistols; long guns, such as modern sporting rifles, bolt action rifles; handcuffs; suppressors; and other firearm-related products under the Smith & Wesson, M&P, and Gemtech brands. It also provides manufacturing services comprising forging, heat treating, rapid prototyping, tooling, finishing, plating, machining, and custom plastic injection molding to other businesses under the Smith & Wesson and Smith & Wesson Precision Components brand names; and sells parts purchased through third parties. The company sells its products to firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement, security agencies and officers, and military agencies. It markets its products through independent dealers, retailers, in-store retails, and direct to consumers; print, broadcast, and digital advertising campaigns; social and electronic media; and in-store retail merchandising strategies. Smith & Wesson Brands, Inc. was founded in 1852 and is based in Springfield, Massachusetts.
How the Company Makes MoneySmith & Wesson generates revenue through the sale of its firearms and ammunition, which constitute its primary revenue stream. The company sells its products directly to consumers, as well as through a network of distributors, retailers, and law enforcement agencies. Additionally, SWBI benefits from government contracts and military sales, which often provide significant revenue opportunities. The company also earns income from licensing agreements and partnerships within the firearms and outdoor recreation sectors. Seasonal demand, particularly during hunting seasons and in response to legislative changes affecting gun ownership, further influences its sales performance. Overall, the diverse product range and strategic partnerships are key contributors to Smith & Wesson's earnings.
Smith & Wesson Brands Key Performance Indicators (KPIs)
Any
Handguns Total Units Shipped by Channel
Tracks the number of handguns shipped through various sales channels, indicating demand trends, channel performance, and potential shifts in consumer preferences.
Tracks the number of handguns shipped through various sales channels, indicating demand trends, channel performance, and potential shifts in consumer preferences.
Data provided by:
The Fly
The FlySmith & Wesson Brands Earnings Call Summary
Earnings Call Date:Dec 04, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 18, 2026
Earnings Call Sentiment Neutral
The call presented a mixed sentiment with strong performance in handgun sales, successful inventory management, and increased average selling prices being the key highlights. However, the decline in net sales, gross margin, and net income, coupled with increased tariff costs, presented significant challenges.Q2-2026 Updates
Positive Updates
Strong Handgun Performance
Handgun sales outperformed the market with a 7.7% increase in retail counter sell-through and a 2.1% increase in average selling prices (ASP).
Inventory Management Success
The company achieved a significant reduction in inventory, decreasing from $196 million a year ago to $183 million, and generated over $27 million in operating cash flow.
New Product Success
New products accounted for nearly 40% of sales in the quarter, showcasing the effectiveness of the company's innovation strategy.
Improved Average Selling Prices
Overall ASPs increased by 3.5% year-over-year, with a 10.2% increase in long guns and a 2.1% increase in handguns.
Negative Updates
Decline in Net Sales
Net sales for the second quarter were $124.7 million, a 3.9% decrease compared to the previous year.
Gross Margin Decrease
Gross margin decreased by 2.3% compared to a year ago, primarily due to decreased absorption on temporarily lower production.
Increased Tariff Costs
An 80 basis point negative impact from tariffs was noted, with expectations for this impact to increase in the second half of the fiscal year.
Net Income Decline
Net income decreased to $1.9 million from $4.5 million in the same period last year, resulting in a drop in earnings per share from 10¢ to 4¢.
Company Guidance
During the Smith & Wesson Brands, Inc. Second Quarter Fiscal 2026 Financial Results Conference Call, the company reported net sales of $124.7 million, a 3.9% decline from the previous year. Despite this, the company achieved $15 million in EBITDA and generated over $27 million in operating cash flow. The call highlighted a significant 40% contribution to sales from new products, and a 3.3% increase in total firearm unit shipments, outperforming a market down by 2.7%. Handgun sell-through at the retail counter rose by 7.7%, while unit shipments into the sporting goods channel decreased by 1.9% for handguns and 5.1% for long guns. Average selling prices (ASPs) increased by 3.5% overall, with a 2.1% rise in handguns to $418 and a 10.2% rise in long guns to $602. Inventory levels were reduced to $183 million, representing a decrease from $203 million in the previous quarter. Looking ahead to Q3, the company expects sales growth of 8% to 10% over the previous year's Q3, with gross margins anticipated to increase. The call underscored the company's focus on innovation, strong brand presence, and disciplined inventory management.Smith & Wesson Brands Financial Statement Overview
Summary
Smith & Wesson Brands faces challenges with declining revenue and profitability margins, yet maintains operational efficiency. The balance sheet is strong with low leverage, but reduced return on equity indicates profitability concerns. Cash flow performance has improved, but historical volatility suggests the need for careful cash management. Overall, the company demonstrates resilience in a challenging environment.Income Statement
Smith & Wesson Brands has experienced a decline in revenue growth, with a negative growth rate in the TTM period. The gross profit margin has decreased over time, indicating pressure on profitability. However, the company maintains positive net profit and EBIT margins, suggesting operational efficiency despite revenue challenges.65
Positive
Balance Sheet
The company's debt-to-equity ratio remains low, indicating a conservative leverage position. Return on equity has decreased significantly from previous years, reflecting reduced profitability. The equity ratio remains stable, suggesting a solid capital structure.70
Positive
Cash Flow
Smith & Wesson Brands shows a strong recovery in free cash flow growth in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is healthy, suggesting efficient cash conversion. However, historical volatility in free cash flow highlights potential cash flow management challenges.75
Positive
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 466.39M | 474.66M | 535.83M | 479.24M | 864.13M | 1.06B |
| Gross Profit | 120.92M | 127.18M | 158.09M | 154.54M | 374.56M | 448.98M |
| EBITDA | 52.04M | 55.71M | 84.01M | 81.10M | 281.64M | 350.32M |
| Net Income | 9.90M | 13.43M | 39.61M | 36.88M | 194.49M | 252.05M |
Balance Sheet | ||||||
| Total Assets | 548.58M | 559.61M | 577.43M | 541.29M | 497.48M | 446.39M |
| Cash, Cash Equivalents and Short-Term Investments | 27.32M | 25.23M | 60.84M | 53.56M | 120.73M | 113.02M |
| Total Debt | 123.58M | 114.73M | 77.80M | 64.46M | 40.28M | 41.18M |
| Total Liabilities | 185.39M | 187.16M | 177.51M | 156.67M | 136.96M | 180.00M |
| Stockholders Equity | 363.20M | 372.45M | 399.91M | 384.62M | 360.51M | 266.38M |
Cash Flow | ||||||
| Free Cash Flow | 36.47M | -29.02M | 15.79M | -73.17M | 113.56M | 292.65M |
| Operating Cash Flow | 50.15M | -7.22M | 106.74M | 16.73M | 137.81M | 315.33M |
| Investing Cash Flow | -31.15M | -19.17M | -81.49M | -89.78M | -24.12M | -23.40M |
| Financing Cash Flow | -35.66M | -9.21M | -17.97M | 5.88M | -105.99M | -303.92M |
Smith & Wesson Brands Technical Analysis
Positive
11.86
Price Trends
11.06
Positive
10.25
Positive
9.47
Positive
Market Momentum
0.25
Positive
61.94
Neutral
73.91
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 11.86 is above the 20-day moving average (MA) of 11.81, above the 50-day MA of 11.06, and above the 200-day MA of 9.47, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 61.94 is Neutral, neither overbought nor oversold. The STOCH value of 73.91 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $571.27M | 31.84 | 8.11% | 2.53% | 7.63% | 7.09% | |
66 Neutral | $291.78M | 42.35 | 16.13% | ― | 50.99% | 612.36% | |
64 Neutral | $534.37M | 55.52 | 2.71% | 5.10% | -9.08% | -71.62% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $609.23M | ― | 0.87% | 1.92% | 3.90% | -92.10% | |
57 Neutral | $240.44M | 22.47 | ― | ― | -11.01% | -279.70% | |
55 Neutral | $48.71M | -38.14 | -1.26% | ― | -23.87% | -109.71% |
* Industrials Sector Average
SWBI
Smith & Wesson Brands
12.01
1.78
17.41%
PKE
Park Electrochemical
29.19
16.23
125.28%
RGR
Sturm Ruger & Company
38.32
-0.55
-1.43%
VTSI
VirTra
4.31
-1.35
-23.85%
POWW
AMMO
2.10
0.58
38.16%
BYRN
Byrna Technologies
12.72
-10.68
-45.64%
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.