SWK Holdings (SWKH) AI Stock Analysis

• Market Cap: $205.39M
• Dividend Yield: N/A
• Average Volume (3M): 12.90K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.08
• Revenue Growth: 2.70%
• EPS Growth: 100.41%
• Country: US
• Employees: 24
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.59
• Shares Outstanding: 12,095,906
• 10 Day Avg. Volume: 9,669
• 30 Day Avg. Volume: 12,902
• PEG Ratio: -0.85
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 3.46
• P/FCF Ratio: 6.79
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 4.39
• Enterprise Value/Gross Profit: 4.60
• Enterprise Value/Ebitda: 5.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.73
• Revenue Forecast (FY): $41.30M

• Rating: 77 Outperform
• Price Target: $19.50 ▲(19.34% Upside)

SWK Holdings' strong financial performance and attractive valuation are key strengths, supported by positive technical indicators. The merger with Runway Growth is a strategic advantage, though the reduction in credit commitments presents a potential risk.

Positive Factors

Merger with Runway Growth

The merger with Runway Growth is a strategic move that enhances SWK's market position and financial profile, potentially increasing asset base and exposure in healthcare.

Strong Profitability

High gross and net profit margins indicate efficient operations and strong profitability, supporting sustainable business growth and investment capacity.

Low Leverage

Low leverage provides financial stability and flexibility, allowing SWK to pursue growth opportunities without significant debt burden.

Negative Factors

Decline in Free Cash Flow Growth

A decline in free cash flow growth could impact future liquidity and limit the company's ability to reinvest in growth or manage debt effectively.

Reduction in Credit Commitments

The reduction in credit commitments may limit SWK's financial flexibility and ability to support new investments or manage operational needs.

Fluctuating Revenue Growth

Inconsistent revenue growth can pose a risk to long-term stability, affecting planning and investment strategies.

SWK Holdings Business Overview & Revenue Model

Company Description

SWK Holdings Corporation (SWKH) is a diversified investment firm specializing in providing financial solutions and strategic capital to companies in the life sciences sector. The company focuses on identifying and investing in innovative businesses within pharmaceuticals, biotechnology, and medical technology, offering both debt and equity financing to support their growth and development. SWK Holdings aims to leverage its expertise and industry relationships to enhance the value of its investments and achieve sustainable returns.

How the Company Makes Money

SWK Holdings generates revenue primarily through its investment activities, which include providing financing solutions such as loans and equity investments to life sciences companies. The company earns interest income from its debt investments, as well as potential capital gains from equity stakes in portfolio companies. Additionally, SWK may receive fees for advisory services and for managing its investment portfolio. Key revenue streams include interest payments from borrowers, dividend income from equity holdings, and profits from the sale of investments. Strategic partnerships with biotech firms and other financial institutions can also contribute to SWK's earnings by facilitating access to new investment opportunities and enhancing its market presence.

SWK Holdings Financial Statement Overview

Summary

SWK Holdings shows strong profitability and cash flow metrics, with robust EBIT and EBITDA margins. The balance sheet is stable with low leverage, although revenue growth has been inconsistent.

Income Statement

SWK Holdings demonstrates strong profitability with high gross and net profit margins, indicating efficient cost management and profitability. However, the revenue growth rate has been inconsistent, with a recent decline in TTM (Trailing-Twelve-Months) data. The EBIT and EBITDA margins are robust, reflecting strong operational performance.

Balance Sheet

The company maintains a low debt-to-equity ratio, suggesting conservative leverage and financial stability. Return on equity is moderate, indicating decent profitability relative to shareholder equity. The equity ratio is healthy, showing a strong equity base relative to total assets.

Cash Flow

SWK Holdings shows positive free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is near unity, reflecting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.13M	44.99M	37.76M	41.48M	56.16M	36.71M
Gross Profit	43.01M	42.78M	34.32M	34.53M	48.81M	32.44M
EBITDA	34.78M	24.87M	19.37M	12.66M	37.70M	16.21M
Net Income	22.73M	13.49M	15.89M	13.49M	25.93M	5.20M
Balance Sheet
Total Assets	289.36M	332.24M	334.25M	299.62M	282.67M	273.90M
Cash, Cash Equivalents and Short-Term Investments	10.21M	5.93M	4.50M	6.16M	43.90M	4.22M
Total Debt	31.92M	37.65M	43.13M	2.44M	8.00K	11.76M
Total Liabilities	35.16M	43.55M	53.94M	19.69M	15.43M	33.39M
Stockholders Equity	254.21M	288.69M	280.31M	279.93M	267.24M	240.51M
Cash Flow
Free Cash Flow	23.28M	22.91M	14.39M	7.91M	33.22M	15.33M
Operating Cash Flow	23.88M	23.05M	14.89M	8.20M	34.30M	19.27M
Investing Cash Flow	22.28M	-10.13M	-48.95M	-43.55M	25.76M	-35.17M
Financing Cash Flow	-53.12M	-12.22M	33.14M	-1.36M	-20.20M	7.75M

SWK Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.34
• 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 SWKH, the sentiment is Positive. The current price of 16.34 is below the 20-day moving average (MA) of 16.82, above the 50-day MA of 16.26, and above the 200-day MA of 14.77, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 38.80 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
SWKH	77 Outperform	$205.39M	9.12	8.45%	―	2.70%	100.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WHF	67 Neutral	$177.58M	18.01	3.51%	20.43%	-55.82%	-4.97%
SAMG	65 Neutral	$177.70M	20.42	9.23%	5.44%	4.18%	-9.53%
EARN	62 Neutral	―	9.99	9.66%	17.91%	630.98%	234.98%
SSSS	45 Neutral	$234.34M	5.05	35.45%	5.23%	―	―

SWK Holdings Corporate Events

SWK Holdings Reduces Credit Agreement Commitments

On December 4, 2025, SWK Holdings Corporation, along with SWK Funding LLC and First Horizon Bank, entered into a Sixth Amendment to their Credit Agreement. This amendment reduced the aggregate commitments from $60 million to $10 million, potentially impacting the company’s financial flexibility and stakeholder interests.

SWK Holdings Merger with Runway Growth Finance Approved

SWK Holdings Corporation, a Delaware-based company, announced its merger with Runway Growth Finance Corp. through a series of mergers, with the final merger expected to complete in the first quarter of 2026. The U.S. Federal Trade Commission’s Bureau of Competition granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, which is a significant step towards the merger’s completion, though it remains subject to customary closing conditions including stockholder approval.

SWK Holdings Announces Merger with Runway Growth

On October 9, 2025, SWK Holdings Corporation entered into a merger agreement with Runway Growth Finance Corp. and its subsidiaries, which will result in SWK becoming a wholly owned subsidiary of Runway Growth. The merger involves multiple steps, including cash and stock considerations for SWK shareholders, and aims to streamline operations and enhance market positioning. The merger agreement includes customary conditions and termination rights, with a significant voting agreement from a key stockholder holding 69.9% of SWK’s voting power, which is expected to facilitate the transaction’s approval.

SWK Holdings Announces Merger with Runway Growth

On October 9, 2025, SWK Holdings Corporation and Runway Growth Finance Corp. announced a definitive merger agreement. This strategic acquisition by Runway Growth aims to diversify and optimize its portfolio by integrating SWK’s high-quality healthcare and life sciences investments. The merger is expected to enhance Runway Growth’s financial profile, increase its total assets to $1.3 billion, and generate mid-single-digit net investment income accretion. The transaction will expand Runway Growth’s exposure in the healthcare sector, improve its shareholder base, and is anticipated to close by late 2025 or early 2026, pending necessary approvals.

SWK Holdings Announces Full Loan Repayment by Elutia

On October 1, 2025, SWK Holdings Corporation announced the full repayment of its loan to Elutia, Inc. following Elutia’s sale of its BioEnvelope business to Boston Scientific Corporation. The repayment of $27.8 million exceeded SWK Holdings’ net GAAP carrying value and is expected to result in approximately $2.8 million of incremental income for the company.