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Smith & Wesson Brands, Inc. (SWBI)
NASDAQ:SWBI
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Smith & Wesson Brands
(NASDAQ:SWBI)
Rating:54Neutral
Price Target:
$9.00
▲(12.64% Upside)
Smith & Wesson Brands (SWBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$350.69M
Dividend Yield6.51%
Average Volume (3M)898.45K
Price to Earnings (P/E)26.6
Beta (1Y)0.31
Revenue Growth-11.73%
EPS Growth-64.84%
CountryUS
Employees1,501
SectorIndustrials
Sector Strength84
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.19
Shares Outstanding44,111,460
10 Day Avg. Volume758,604
30 Day Avg. Volume898,447
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue1.08
Enterprise Value/Gross Profit4.04
Enterprise Value/Ebitda9.22
Forecast
1Y Price Target
$10.00Price Target Upside25.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 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 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:
Main Street Data
Main Street DataSmith & Wesson Brands Earnings Call Summary
Earnings Call Date:Jun 18, 2025
(Q4-2025)
| % Change Since: -25.47%|
Next Earnings Date:Sep 04, 2025
Earnings Call Sentiment Negative
The call highlighted the company's strong product innovation and market share leadership, but these were overshadowed by significant declines in sales, gross margins, and net income due to macroeconomic pressures and industry challenges. The company is managing its balance sheet well and anticipates soft demand going forward.Q4-2025 Updates
Positive Updates
Strong New Product Sales
New products accounted for 44% of sales in the fourth quarter, indicating successful innovation and market differentiation.
Market Share Leadership
Despite challenges, Smith & Wesson maintained a market share leadership position at the retail counter, driven by strong product performance.
Balance Sheet Strength
The company reported a strong balance sheet, with ongoing efforts to manage inventory and production schedules to align with demand.
Positive Cash Flow
Generated $40.8 million in cash from operations during the quarter, ending with $25.2 million in cash.
Negative Updates
Decline in Net Sales
Net sales for the fourth quarter were $140.8 million, down 11.6% compared to the prior year.
Reduced Gross Margin
Gross margin fell to 28.8%, a decline of 6.7 percentage points from the prior year, due to lower production volume and increased promotions.
Lower Net Income
Net income decreased by $18.7 million compared to the prior year, with earnings per share dropping from $0.59 to $0.19.
Macroeconomic and Industry Challenges
Faced challenges from persistent inflation, high interest rates, and tariff concerns, which impacted the overall firearms market conditions.
Expected Continued Soft Demand
The company anticipates continued soft demand and economic headwinds in fiscal 2026, with first-quarter demand expected to be 10% lower than the previous year.
Company Guidance
During the Smith & Wesson Brands, Inc. Fourth Quarter and Full Fiscal 2025 Financial Results Conference Call, the company provided guidance reflecting a challenging macroeconomic and industry environment. Key metrics discussed included a decline in fourth quarter net sales by 11.6% to $140.8 million, with new products making up 43.9% of total revenue. Adjusted NICS was down 5.4% in Q4, indicating a decrease in consumer firearm demand, although the company gained market share in handguns. Average selling prices (ASP) were down 4.5% year-over-year. For fiscal 2026, Smith & Wesson anticipates continued economic headwinds, with the first quarter sales expected to be approximately 10% lower than the prior year, alongside lower margins due to increased tariffs on raw materials. The company plans to manage production schedules, including an extended summer shutdown, to align inventory with demand and maintain strong ASPs. They are also focused on debt reduction and maintaining a strong balance sheet, projecting significant cash generation and inventory reduction throughout the year.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.65
Positive
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.70
Positive
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.55
Neutral
| 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
Negative
7.99
Price Trends
8.83
Negative
9.05
Negative
10.06
Negative
Market Momentum
-0.23
Negative
41.59
Neutral
40.51
Neutral
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 7.99 is below the 20-day moving average (MA) of 8.11, below the 50-day MA of 8.83, and below the 200-day MA of 10.06, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 40.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $357.60M | 51.93 | 6.43% | 2.84% | 16.60% | 6.58% | |
69 Neutral | $504.25M | 33.77 | 28.05% | ― | 73.56% | ― | |
66 Neutral | $81.31M | 55.99 | 3.10% | ― | -29.61% | -78.85% | |
64 Neutral | $10.64B | 16.01 | 5.48% | 2.12% | 2.72% | -24.90% | |
57 Neutral | $539.97M | 108.05 | 1.88% | 2.17% | 3.31% | -82.99% | |
54 Neutral | $350.69M | 26.61 | 3.48% | 6.51% | -11.73% | -64.84% | |
42 Neutral | $138.19M | ― | -17.71% | ― | -11.01% | -279.70% |
* Industrials Sector Average
Performance Comparison
SWBI
Smith & Wesson Brands
7.99
-6.17
-43.57%
PKE
Park Electrochemical
17.63
5.67
47.41%
RGR
Sturm Ruger & Company
33.25
-7.52
-18.44%
VTSI
VirTra
6.97
-0.84
-10.76%
POWW
AMMO
1.13
-0.49
-30.25%
BYRN
Byrna Technologies
21.24
11.09
109.26%
Smith & Wesson Brands Corporate Events
Executive/Board Changes
Smith & Wesson VP of Sales Announces Retirement
Neutral
May 2, 2025
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.
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.