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Smith & Wesson Brands
(NASDAQ:SWBI)
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Rating:61Neutral
Price Target:
$15.00
▲(2.46% Upside)
Action:Reiterated
Date:08/18/26
SWBI scores above-average primarily due to a strong balance sheet and a constructive earnings-call outlook (guidance for growth, market share gains, and strong recent cash generation). The score is held back by materially compressed profitability versus prior-cycle highs, uneven multi-year cash-flow consistency, bearish/weak technical momentum, and a high P/E that limits valuation attractiveness despite a solid dividend yield.
Positive Factors
Conservative Balance Sheet
A debt-free balance sheet gives SWBI financial flexibility through industry cycles, reduces interest burden, and supports investment in capacity, product development, dividends, or opportunistic buybacks.
Negative Factors
Compressed Profitability
Profitability remains far below prior-cycle levels, suggesting weaker operating leverage, pricing, or product mix. Lower earnings conversion reduces resilience and limits the cash available for reinvestment and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
A debt-free balance sheet gives SWBI financial flexibility through industry cycles, reduces interest burden, and supports investment in capacity, product development, dividends, or opportunistic buybacks.
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.
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The Fly
The FlySmith & Wesson Brands (SWBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$642.55M
Dividend Yield3.63%
Average Volume (3M)844.78K
Price to Earnings (P/E)34.9
Beta (1Y)0.51
Revenue Growth10.75%
EPS Growth35.88%
CountryUS
Employees1,382
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.41
Shares Outstanding44,839,680
10 Day Avg. Volume473,243
30 Day Avg. Volume844,780
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.50Price Target Upside12.70% 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:Jun 17, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 03, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial picture: robust top-line growth (Q4 net sales +26.7%), substantial margin and EPS improvement, strong cash generation, meaningful debt reduction, and clear market share gains driven by new-product innovation (new products ~37–38% of revenue). Near-term headwinds include rising operating expenses, tariff and inventory reserve impacts, an expected ~5% sequential ASP decline in Q1 due to mix, a higher effective tax rate, and elevated CapEx to expand capacity. On balance, the positives (revenue, profitability, cash flow, market share, debt reduction, and successful product launches) significantly outweigh the near-term challenges and planned investments.Positive Updates
Quarterly Revenue and Profit Growth
Net sales of $178.4 million in Q4, up $37.6 million or 26.7% year-over-year. Adjusted EBITDA increased 31.7% and adjusted EPS was reported as materially higher (management cited 'nearly 77%' increase); GAAP EPS for the quarter was $0.36 versus $0.19 in the prior-year quarter.
Negative Updates
Rising Operating Expenses
Operating expenses in Q4 were $31.7 million, $4.3 million higher than prior year driven by profit-related compensation (profit-sharing/incentives), higher freight costs, and increased R&D. Management expects first-quarter operating expenses to be approximately 20% higher year-over-year due to volume and profit-related costs.
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly Revenue and Profit Growth
Net sales of $178.4 million in Q4, up $37.6 million or 26.7% year-over-year. Adjusted EBITDA increased 31.7% and adjusted EPS was reported as materially higher (management cited 'nearly 77%' increase); GAAP EPS for the quarter was $0.36 versus $0.19 in the prior-year quarter.
Read all positive updates
Company Guidance
Smith & Wesson expects firearm industry demand in FY2027 to be healthy and slightly higher than FY2026, with full‑year revenue growth forecast in the mid‑single digits and Q1 revenue roughly 15%–20% above last year; Q1 margins are expected to be about 1–2 points higher on increased volume even as sequential ASPs are projected to be down ~5% (handgun decline partially offset by long‑gun mix). Q1 operating expenses are expected to be ~20% higher year‑over‑year due to volume and profit‑related costs, the effective tax rate is anticipated to be ~30% (higher than FY2026), and channel inventory is not expected to be drawn down. Capital investment will increase to support Springfield capacity — about 20 new CNC machines (half online this summer, the rest by year‑end) — with CapEx roughly $20M above the historical $25–30M run‑rate (i.e., ~ $45–50M); the Board authorized a $0.13 quarterly dividend (record July 1, pay July 15) and share repurchases remain authorized and opportunistic.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
Neutral
14.64
Price Trends
14.89
Negative
14.86
Negative
12.72
Positive
Market Momentum
-0.20
Positive
43.65
Neutral
22.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWBI, the sentiment is Neutral. The current price of 14.64 is above the 20-day moving average (MA) of 14.60, below the 50-day MA of 14.89, and above the 200-day MA of 12.72, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 43.65 is Neutral, neither overbought nor oversold. The STOCH value of 22.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $411.68M | 21.50 | 27.02% | ― | 20.30% | 61.44% | |
65 Neutral | $601.90M | 49.05 | 4.29% | 1.02% | 7.64% | 138.23% | |
64 Neutral | $259.87M | 87.84 | 2.43% | ― | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $642.55M | 34.91 | 5.04% | 3.55% | 10.75% | 35.88% | |
51 Neutral | $95.09M | -27.66 | -5.85% | ― | 5.15% | -124.82% | |
48 Neutral | $36.56M | -13.21 | -6.13% | ― | -33.51% | -788.76% |
* Industrials Sector Average
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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.