Smith & Wesson Brands (SWBI) AI Stock Analysis

• Market Cap: $360.83M
• Dividend Yield: 6.36%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.28
• Revenue Growth: -11.73%
• EPS Growth: -64.84%
• Country: US
• Employees: 1,501
• Sector: Industrials
• Sector Strength: 90
• Industry: Aerospace & Defense
• EPS (TTM): 0.20
• Shares Outstanding: 44,111,460
• 10 Day Avg. Volume: 810,329
• 30 Day Avg. Volume: 1,088,048
• PEG Ratio: -0.50
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.46
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 1.55
• 1Y Price Target: $10.00
• Price Target Upside: 24.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $9.00 ▲(12.08%Upside)

Smith & Wesson's overall stock score is primarily impacted by financial performance challenges, with significant revenue and profitability declines. Technical analysis also indicates bearish momentum. While product innovation and a strong dividend yield provide some positive aspects, the macroeconomic pressures and overvaluation concerns weigh heavily on the stock's outlook.

Smith & Wesson Brands Business Overview & Revenue Model

Company Description

Smith & 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 Money

Smith & Wesson Brands, Inc. generates revenue primarily through the design, manufacture, and sale of firearms. The company's revenue streams are significantly driven by its diverse product offerings, which include handguns, long guns, and other related accessories. Sales are made through a network of distributors and retailers, both domestically and internationally. The company also benefits from contracts with law enforcement and military agencies, which are significant contributors to its income. Additionally, Smith & Wesson has established partnerships and licensing agreements that allow it to expand its brand presence and leverage its reputation in the firearms industry.

Smith & Wesson Brands Financial Statement Overview

Summary

Smith & Wesson Brands faces financial headwinds with declining revenue and profitability. The company's revenue dropped significantly from $1.06 billion in 2021 to $474.66 million in 2025. Decreased profit margins and negative free cash flow, driven by high capital expenditures, highlight the need for improved cash management.

Income Statement

Smith & Wesson Brands has seen a notable decline in revenue and profitability in recent years, with revenue dropping from $1.06 billion in 2021 to $474.66 million in 2025. Gross and net profit margins also decreased, indicating pressure on profitability. The company needs to address these challenges to improve its financial performance.

Balance Sheet

The company's balance sheet shows a solid equity base, with a debt-to-equity ratio consistently below 0.31, indicating manageable leverage. However, the decline in stockholders' equity and assets could signal potential risks. Maintaining this balance is crucial for financial stability.

Cash Flow

The cash flow situation is concerning, as the company reported negative free cash flow in the most recent year, driven by high capital expenditures and declining operating cash flow. This trend highlights the need for efficient cash management and cost optimization.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	474.66M	535.83M	479.24M	864.13M	1.06B
Gross Profit	127.18M	158.09M	154.54M	374.56M	448.98M
EBITDA	55.71M	84.01M	81.10M	251.65M	319.63M
Net Income	13.43M	39.61M	36.88M	194.49M	252.05M
Balance Sheet
Total Assets	559.61M	578.00M	541.29M	497.48M	446.39M
Cash, Cash Equivalents and Short-Term Investments	25.23M	60.84M	53.56M	120.73M	113.02M
Total Debt	114.73M	78.37M	61.75M	40.28M	38.79M
Total Liabilities	187.16M	179.84M	156.67M	136.96M	180.00M
Stockholders Equity	372.45M	398.16M	384.62M	360.51M	266.38M
Cash Flow
Free Cash Flow	-29.02M	15.79M	-73.17M	113.56M	292.65M
Operating Cash Flow	-7.22M	106.74M	16.73M	137.81M	315.33M
Investing Cash Flow	-19.17M	-81.49M	-89.78M	-24.12M	-23.40M
Financing Cash Flow	-9.21M	-17.97M	5.88M	-105.99M	-303.92M

Smith & Wesson Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWBI, the sentiment is Negative. The current price of 8.03 is below the 20-day moving average (MA) of 8.63, below the 50-day MA of 9.24, and below the 200-day MA of 10.39, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 33.84 is Neutral, neither overbought nor oversold. The STOCH value of 9.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SWBI.

Smith & Wesson Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RGR	69 Neutral	$588.03M	19.45	9.56%	2.02%	0.65%	-20.28%
Sector *	58 Neutral	HK$14.11B	4.63	-3.01%	6.76%	3.67%	-54.16%
SWBI	54 Neutral	$360.83M	27.54	3.48%	6.36%	-11.73%	-64.84%
POWW	42 Neutral	$140.53M	―	-17.71%	―	-11.01%	-279.70%

Smith & Wesson Brands Corporate Events

Smith & Wesson VP of Sales Announces Retirement

Smith & Wesson Brands, Inc. announced that its Vice President of Sales, Susan J. Cupero, plans to retire in May 2025. An agreement was made to ensure her continued salary and benefits, including immediate vesting of certain stock units and a lump sum for Medicare coverage, impacting the company’s leadership transition.