SWK Holdings (SWKH) AI Stock Analysis

• Market Cap: $170.55M
• Dividend Yield: N/A
• Average Volume (3M): 13.26K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.19
• Revenue Growth: 6.60%
• EPS Growth: 41.37%
• Country: US
• Employees: 24
• Sector: Financial
• Sector Strength: 69
• Industry: Asset Management
• EPS (TTM): 0.38
• Shares Outstanding: 12,147,391
• 10 Day Avg. Volume: 14,721
• 30 Day Avg. Volume: 13,261
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 4.57
• Enterprise Value/Gross Profit: 4.84
• Enterprise Value/Ebitda: 7.11
• 1Y Price Target: $15.50
• Price Target Upside: 5.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: $16.50 ▲(12.24% Upside)

SWK Holdings' strong financial performance and attractive valuation are the primary drivers of its score. The positive sentiment from the earnings call further enhances the outlook, despite some technical indicators suggesting potential short-term weakness.

Positive Factors

Analyst Rating

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

Credit Quality

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

Earnings

SWKH reported GAAP EPS of $0.37, beating the estimate of $0.23, which shows improved earnings outlook.

Negative Factors

Earnings Power

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

Investment Portfolio

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

SWK Holdings Business Overview & Revenue Model

Company Description

SWK Holdings Corporation (SWKH) is a specialized finance company that focuses on providing innovative financial solutions to the life sciences, healthcare, and technology sectors. The company primarily engages in the acquisition and management of financial assets, offering a range of products including debt financing, equity investments, and structured finance solutions. SWK Holdings aims to support the growth of companies within its targeted sectors by providing flexible capital solutions and strategic partnerships.

How the Company Makes Money

SWK Holdings generates revenue through a diversified revenue model that includes interest income from various financing arrangements, fees from equity investments, and gains from the sale of financial assets. The company earns interest income primarily by lending to companies in the life sciences and technology sectors, often in the form of structured debt. Additionally, SWK Holdings generates management fees and performance-based incentives from the management of its investment portfolio. Key partnerships with healthcare and technology firms enhance its ability to identify lucrative investment opportunities, thereby contributing to its overall earnings. The company's strategic focus on niche markets allows it to capitalize on specialized financing needs, providing a competitive advantage in generating consistent revenue streams.

SWK Holdings Financial Statement Overview

Summary

SWK Holdings demonstrates strong profitability with high margins and effective cost management. The balance sheet is robust with low leverage, and cash flow generation is impressive. However, challenges in maintaining revenue growth and improving ROE are areas for potential improvement.

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	44.66M	44.99M	37.76M	41.48M	56.16M	36.71M
Gross Profit	42.11M	42.78M	34.32M	34.53M	48.81M	32.44M
EBITDA	28.70M	24.87M	20.66M	12.43M	37.45M	21.90M
Net Income	17.41M	13.49M	15.89M	13.49M	25.93M	5.20M
Balance Sheet
Total Assets	285.70M	332.24M	334.25M	299.62M	282.67M	273.90M
Cash, Cash Equivalents and Short-Term Investments	8.01M	5.93M	4.50M	6.16M	43.90M	4.22M
Total Debt	32.03M	37.65M	43.13M	2.44M	8.00K	11.76M
Total Liabilities	39.23M	43.55M	53.94M	19.69M	15.43M	33.39M
Stockholders Equity	246.47M	288.69M	280.31M	279.93M	267.24M	240.51M
Cash Flow
Free Cash Flow	29.01M	22.91M	14.39M	7.91M	33.22M	15.33M
Operating Cash Flow	29.29M	23.05M	14.89M	8.20M	34.30M	19.27M
Investing Cash Flow	27.89M	-10.13M	-48.95M	-43.55M	25.76M	-35.17M
Financing Cash Flow	-54.72M	-12.22M	33.14M	-1.36M	-20.20M	7.75M

SWK Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.70
• 50DMA: Negative
• 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 14.7 is above the 20-day moving average (MA) of 14.63, below the 50-day MA of 14.82, and above the 200-day MA of 13.72, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 42.20 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	$170.55M	10.00	6.58%	―	6.60%	41.37%
LIEN	75 Outperform	$248.06M	10.53	12.44%	11.68%	―	―
NEWT	69 Neutral	$316.65M	6.01	18.20%	6.09%	18.36%	17.28%
WHF	67 Neutral	$197.80M	55.62	1.21%	20.93%	-49.76%	-84.43%
Sector *	62 Neutral	AU$10.71B	11.73	12.99%	5.01%	32.06%	59.28%
TPVG	59 Neutral	$256.46M	6.17	11.78%	18.66%	377.90%	―
OXSQ	51 Neutral	$174.80M	602.56	-0.87%	18.92%	-569.90%	-144.29%

SWK Holdings Corporate Events

SWK Holdings Reports Q2 2025 Financial Results

On August 14, 2025, SWK Holdings Corporation announced its financial results for the second quarter of 2025, highlighting a GAAP net income of $3.5 million and a non-GAAP net income of $4.6 million. The company reported a decrease in total revenue to $10.1 million compared to the previous year, primarily due to the monetization of its royalty portfolio. SWK sold the majority of its royalty portfolio and MOD3 assets, simplifying its business and allowing a focus on its core life science loan strategy. The company also paid a $4.00 per share dividend to shareholders and repurchased shares worth $0.9 million during the quarter, reflecting a strategic shift towards supporting existing borrowers and enhancing shareholder value.

SWK Holdings Finalizes Asset Sale to AptarGroup

On July 15, 2025, SWK Holdings Corporation and its subsidiary MOD3 Pharma Inc. finalized an asset purchase agreement with AptarGroup, Inc. for the sale of MOD3’s contract manufacturing and development services business assets for approximately $6.9 million. This transaction, initially disclosed in March 2024, reflects SWK Holdings’ strategic move to divest certain assets, potentially impacting its market positioning and operational focus.

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.