SWK Holdings (SWKH) AI Stock Analysis

• Market Cap: $184.78M
• Dividend Yield: N/A
• Average Volume (3M): 15.69K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.17
• Revenue Growth: 18.18%
• EPS Growth: 54.41%
• Country: US
• Employees: 24
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): 0.66
• Shares Outstanding: 12,269,614
• 10 Day Avg. Volume: 19,701
• 30 Day Avg. Volume: 15,691
• PEG Ratio: -0.35
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.64
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 5.09
• Enterprise Value/Ebitda: 2.26
• 1Y Price Target: $18.00
• Price Target Upside: 19.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $16.00 ▲(6.24%Upside)

SWK Holdings is in a solid financial position with strong profitability and strategic initiatives that boost shareholder value. While its technical indicators are neutral, the company's valuation is appealing, and recent corporate events and earnings calls provide strong positive sentiment.

Positive Factors

Earnings

SWKH reported GAAP EPS of $0.37, surpassing the estimate of $0.23, indicating an improved earnings outlook.

Loan Resolution

The resolution of three troublesome non-accrual loans contributed to an improvement in SWKH's earnings outlook.

Stock Rating

The analyst reiterates a Buy rating, expecting stock price appreciation of about 22% to the $21 price target.

Negative Factors

Dividend Impact

The sale of most of its pharma royalty portfolio and $4/share special dividend decreased the tangible book value of SWKH's healthcare finance segment.

Earnings Power

Management has made substantial portfolio moves to improve credit quality and monetize its royalties portfolio, which should decrease the size of the investment portfolio by about 17%, thus lowering earnings power in the near term.

Investment Portfolio

The sale of the entire portfolio of pharma royalties will increase cash materially, but earnings power should be reduced in the near term due to a smaller investment portfolio.

SWK Holdings Business Overview & Revenue Model

Company Description

SWK Holdings Corporation (SWKH) is a specialized finance company focused on the healthcare and life sciences sectors. The company provides capital to a range of healthcare-related entities through structured credit products, often targeting small to mid-sized companies that require growth capital. SWK Holdings also engages in the management of a portfolio of loans and other investments, leveraging its deep industry expertise to support its clients.

How the Company Makes Money

SWK Holdings makes money primarily by providing customized financing solutions to healthcare and life sciences companies, which include royalty monetization, structured credit, and other tailored financial products. The company's revenue streams are derived from interest income on loans, royalty payments, and capital gains from investments. Additionally, SWK Holdings may earn fees related to the structuring and management of these financial products. The company often collaborates with other financial institutions and industry partners to enhance its offerings and expand its reach in the market.

SWK Holdings Financial Statement Overview

Summary

SWK Holdings demonstrates strong profitability with high margins and efficient cost management. The balance sheet is robust with low leverage, and cash flow generation is solid. However, there are challenges in maintaining revenue growth and improving ROE.

Income Statement

SWK Holdings demonstrates strong profitability with a high gross profit margin of 94.73% and a net profit margin of 39.60% in TTM (Trailing-Twelve-Months). The revenue growth rate from the previous year is a positive 2.59%, indicating steady growth. EBIT and EBITDA margins of 41.89% and 66.10%, respectively, reflect efficient cost management and operational performance. However, a decline in revenue in past years signals potential challenges in maintaining growth momentum.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.11, indicating low leverage and financial stability. The equity ratio of 88.34% suggests strong equity financing. Return on Equity (ROE) stands at 6.24%, showing moderate profitability relative to shareholder equity. The balance sheet reflects prudent financial management, although the ROE could be improved for enhanced investor returns.

Cash Flow

SWK Holdings shows impressive free cash flow growth of 16.39% in TTM, which highlights effective cash generation capabilities. The operating cash flow to net income ratio of 1.47 and a free cash flow to net income ratio of 1.46 indicate strong cash earnings quality. Despite these positives, cash flow variability in past periods calls for cautious optimism.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.15M	44.99M	37.76M	41.48M	56.16M	36.71M
Gross Profit	43.72M	42.78M	34.32M	34.53M	48.81M	32.44M
EBITDA	30.51M	24.87M	20.66M	12.43M	37.45M	21.90M
Net Income	18.27M	13.49M	15.89M	13.49M	25.93M	5.20M
Balance Sheet
Total Assets	331.26M	332.24M	334.25M	299.62M	282.67M	273.90M
Cash, Cash Equivalents and Short-Term Investments	29.81M	5.93M	4.50M	6.16M	43.90M	4.22M
Total Debt	31.57M	37.65M	43.13M	2.44M	8.00K	11.76M
Total Liabilities	38.59M	43.55M	53.94M	19.69M	15.43M	33.39M
Stockholders Equity	292.67M	288.69M	280.31M	279.93M	267.24M	240.51M
Cash Flow
Free Cash Flow	26.66M	22.91M	14.39M	7.91M	33.22M	15.33M
Operating Cash Flow	26.90M	23.05M	14.89M	8.20M	34.30M	19.27M
Investing Cash Flow	3.39M	-10.13M	-48.95M	-43.55M	25.76M	-35.17M
Financing Cash Flow	-5.97M	-12.22M	33.14M	-1.36M	-20.20M	7.75M

SWK Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWKH, the sentiment is Positive. The current price of 15.06 is above the 20-day moving average (MA) of 14.65, above the 50-day MA of 14.29, and above the 200-day MA of 13.46, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 79.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWKH.

SWK Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIEN	75 Outperform	$233.22M	11.82	8.67%	13.31%	―	―
SWKH	74 Outperform	$184.78M	10.19	6.38%	―	18.18%	54.41%
Sector *	67 Neutral	$17.01B	11.90	9.70%	3.76%	11.63%	-9.47%
WHF	67 Neutral	$212.21M	23.20	3.07%	16.87%	-27.52%	-46.85%
NEWT	67 Neutral	$320.06M	6.37	18.18%	6.25%	21.99%	23.40%
TPVG	59 Neutral	$282.84M	7.59	10.68%	17.07%	22.53%	―
OXSQ	51 Neutral	$161.31M	579.49	-0.32%	18.58%	-338.17%	-97.99%

SWK Holdings Corporate Events

SWK Holdings Approves Equity Plan Amendment at Annual Meeting

On June 13, 2025, SWK Holdings Corporation held its Annual Meeting of Stockholders, where several key decisions were made. The stockholders approved an amendment to the company’s 2010 Equity Incentive Plan, extending its termination date to June 13, 2030. Additionally, the election of directors Jerry Albright, Laurie L. Dotter, and Robert K. Hatcher was confirmed, BPM LLP’s appointment as the independent registered public accounting firm was ratified, and the compensation for certain executive officers was approved on an advisory basis.

The most recent analyst rating on (SWKH) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on SWK Holdings stock, see the SWKH Stock Forecast page.

SWK Holdings Announces $10 Million Stock Buyback Plan

On May 19, 2025, SWK Holdings Corporation’s Board of Directors approved a plan to repurchase up to $10 million of its outstanding common stock by May 19, 2026. This move is part of a trading plan compliant with SEC rules, allowing flexibility in timing and volume based on market conditions, though the exact number of shares to be repurchased is not guaranteed.

The most recent analyst rating on (SWKH) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on SWK Holdings stock, see the SWKH Stock Forecast page.

SWK Holdings Unveils Financial Strategy and Achievements

On May 15, 2025, SWK Holdings released an investor presentation detailing its financial strategies and performance metrics. The presentation highlighted the company’s use of Non-GAAP financial measures to provide a comprehensive view of its operations, emphasizing its focus on shareholder value creation through strategic financing and royalty monetization. The company reported significant achievements, including a 17.1% internal rate of return and a 1.43x multiple on invested capital from 44 exits, alongside a $51.3 million monetization of its performing royalty book. SWK Holdings also outlined its strategy to increase book value per share at a 10% compound annual growth rate and optimize its capital structure to enhance return on equity.

The most recent analyst rating on (SWKH) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on SWK Holdings stock, see the SWKH Stock Forecast page.

SWK Holdings Announces $34M Royalty Sale Completion

On April 10, 2025, SWK Holdings Corporation announced the completion of a royalty sale to SCOF SPV I, LP for approximately $34 million, which involved the sale of the majority of its royalty portfolio. This transaction was seen as an attractive monetization of assets and led to the declaration of a special cash dividend of $4 per share, payable on May 8, 2025. The sale and dividend reflect SWK’s commitment to delivering value to shareholders, supported by its robust life science loan portfolio.