Smith & Wesson Brands (SWBI) AI Stock Analysis

• Market Cap: $448.74M
• Dividend Yield: 5.14%
• Average Volume (3M): 772.13K
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.47
• Revenue Growth: -7.25%
• EPS Growth: -63.58%
• Country: US
• Employees: 1,501
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.08
• Shares Outstanding: 44,341,780
• 10 Day Avg. Volume: 502,290
• 30 Day Avg. Volume: 772,128
• 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 Cap: 1.03
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 3.68
• Enterprise Value/Ebitda: 8.35
• 1Y Price Target: $11.00
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: $10.00 ▼(-1.19% Downside)

Smith & Wesson Brands' overall stock score reflects financial challenges, particularly in revenue and profitability, which weigh heavily on the score. Technical indicators suggest a neutral to slightly positive trend, while valuation metrics indicate potential overvaluation. The earnings call provided a balanced view with both strengths in innovation and market share, and weaknesses in financial metrics.

Smith & Wesson Brands Business Overview & Revenue Model

Company Description

Smith & Wesson Brands, Inc. (SWBI) is a leading American manufacturer of firearms and ammunition, primarily known for its handguns, rifles, and related accessories. The company operates in the firearms sector and offers a diverse range of products under well-established brands, including Smith & Wesson, Thompson/Center Arms, and others. With a strong focus on innovation, quality, and reliability, SWBI serves both the consumer and law enforcement markets, providing products that cater to personal protection, sport shooting, and hunting.

How the Company Makes Money

Smith & Wesson Brands generates revenue primarily through the sale of firearms and ammunition. The company's core revenue streams include the sale of handguns, revolvers, rifles, and related accessories, as well as ammunition sales. Additionally, SWBI earns revenue from contracts with law enforcement agencies and government entities, which often require specialized firearms and equipment. The company also benefits from partnerships with distributors and retailers, expanding its market reach. Seasonal trends, such as increased sales during hunting seasons and following significant political events that drive demand for firearms, also contribute to its overall earnings.

Smith & Wesson Brands Financial Statement Overview

Summary

Smith & Wesson Brands is facing financial challenges, with declining revenues and profitability margins. The balance sheet remains relatively stable, but increasing leverage and reduced cash flow generation pose risks. The company needs to address these issues to improve financial health and operational performance.

Income Statement

Smith & Wesson Brands has experienced a significant decline in revenue, with a TTM revenue growth rate of -68.6%. Margins have also contracted, with the TTM gross profit margin at 26.5% and net profit margin at 2.6%, both lower than previous periods. The EBIT and EBITDA margins have also decreased, indicating reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.36 in the TTM, indicating rising leverage, though it remains at a manageable level. Return on equity has decreased to 3.3%, reflecting lower profitability. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

Free cash flow has declined significantly, with a TTM growth rate of -110.7%. The operating cash flow to net income ratio is low at 0.29, indicating potential cash flow challenges. The free cash flow to net income ratio is also low, suggesting limited cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	471.40M	474.66M	535.83M	479.24M	864.13M	1.06B
Gross Profit	125.11M	127.18M	158.09M	154.54M	374.56M	448.98M
EBITDA	55.07M	55.71M	84.01M	81.10M	251.65M	319.63M
Net Income	12.12M	13.43M	39.61M	36.88M	194.49M	252.05M
Balance Sheet
Total Assets	554.63M	559.61M	578.00M	541.29M	497.48M	446.39M
Cash, Cash Equivalents and Short-Term Investments	21.18M	25.23M	60.84M	53.56M	120.73M	113.02M
Total Debt	129.36M	114.73M	78.37M	61.75M	40.28M	38.79M
Total Liabilities	190.25M	187.16M	179.84M	156.67M	136.96M	180.00M
Stockholders Equity	364.38M	372.45M	398.16M	384.62M	360.51M	266.38M
Cash Flow
Free Cash Flow	2.24M	-29.02M	15.79M	-73.17M	113.56M	292.65M
Operating Cash Flow	15.48M	-7.22M	106.74M	16.73M	137.81M	315.33M
Investing Cash Flow	-21.97M	-19.17M	-81.49M	-89.78M	-24.12M	-23.40M
Financing Cash Flow	-11.06M	-9.21M	-17.97M	5.88M	-105.99M	-303.92M

Smith & Wesson Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 10.12 is above the 20-day moving average (MA) of 10.02, above the 50-day MA of 9.28, and above the 200-day MA of 9.23, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 60.36 is Neutral, neither overbought nor oversold. The STOCH value of 78.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWBI.

Smith & Wesson Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PKE	―	$385.38M	53.01	6.76%	2.58%	7.63%	7.09%
RGR	―	$733.11M	146.70	1.88%	4.07%	3.31%	-82.99%
BYRN	―	$477.46M	31.34	29.71%	―	50.99%	612.36%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VTSI	―	$69.41M	173.03	0.83%	―	-17.36%	-94.28%
SWBI	―	$448.74M	37.33	3.27%	5.14%	-7.25%	-63.58%
POWW	―	$179.18M	―	―	―	-11.01%	-279.70%

Smith & Wesson Brands Corporate Events

Smith & Wesson Brands Holds Annual Stockholders Meeting

On September 15, 2025, Smith & Wesson Brands held its annual stockholders meeting where directors were elected, the executive compensation for fiscal 2025 was approved, and KPMG LLP was ratified as the independent registered public accounting firm for fiscal 2026. These decisions reflect the company’s ongoing governance practices and financial oversight, potentially impacting its operational and strategic direction.

The most recent analyst rating on (SWBI) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Smith & Wesson Brands stock, see the SWBI Stock Forecast page.

Smith & Wesson Earnings Call: Mixed Results and Future Outlook

The recent earnings call for Smith & Wesson Brands, Inc. painted a mixed picture of the company’s performance. While there were notable strengths in innovation, market share, and inventory management, financial metrics such as net sales, gross margin, and net earnings revealed some challenges. The reopening of the Smith & Wesson Academy and a strategic focus on new products were highlighted as significant positives during the call.

Smith & Wesson Reports Q1 Fiscal 2026 Results

Smith & Wesson Brands, Inc. is a prominent U.S.-based company specializing in the manufacturing and design of firearms, offering a wide range of products under the Smith & Wesson and Gemtech brands. The company also provides forging and machining services to third parties.

Smith & Wesson Amends Credit Agreement with TD Bank

On August 15, 2025, Smith & Wesson Brands and its subsidiaries amended their credit agreement with TD Bank and other financial institutions. The First Amendment allows for specific exclusions in calculating financial ratios and includes changes to the minimum Consolidated Fixed Charge Coverage Ratio for certain periods in 2026, potentially impacting the company’s financial flexibility and stakeholder interests.

The most recent analyst rating on (SWBI) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Smith & Wesson Brands stock, see the SWBI Stock Forecast page.