SWK Holdings (SWKH) AI Stock Analysis

• Market Cap: $178.20M
• Dividend Yield: N/A
• Average Volume (3M): 9.10K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.18
• Revenue Growth: 6.60%
• EPS Growth: 41.37%
• Country: US
• Employees: 24
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.38
• Shares Outstanding: 12,147,391
• 10 Day Avg. Volume: 6,317
• 30 Day Avg. Volume: 9,095
• 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: 1.14
• Enterprise Value/Revenue: 4.57
• Enterprise Value/Gross Profit: 4.84
• Enterprise Value/Ebitda: 7.11
• 1Y Price Target: $18.50
• Price Target Upside: 26.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $17.00 ▲(15.88% Upside)

SWK Holdings demonstrates strong financial performance and positive earnings call outcomes, particularly with strategic asset sales and shareholder returns. The technical analysis suggests a neutral trend, while the valuation indicates potential undervaluation. These factors collectively contribute to a solid overall stock score.

Positive Factors

Strong Cash Generation

The company's ability to generate positive free cash flow demonstrates effective cash management and supports sustainable operations, providing financial flexibility for future investments or shareholder returns.

Strategic Asset Sales

Strategic asset sales enhance liquidity and enable significant shareholder returns, reflecting management's ability to optimize asset value and strengthen financial positioning.

Low Leverage

Low leverage indicates a strong balance sheet, reducing financial risk and providing the company with the capacity to take on new opportunities without excessive debt burden.

Negative Factors

Decreased Finance Receivables Revenue

The decline in finance receivables revenue suggests challenges in maintaining consistent income from lending activities, potentially impacting future revenue stability.

Decreased GAAP Book Value

The reduction in GAAP book value per share may indicate underlying asset value concerns, affecting investor perception and long-term equity value.

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder long-term strategic planning and investment, potentially affecting the company's ability to sustain competitive advantages.

SWK Holdings Business Overview & Revenue Model

Company Description

SWK Holdings Corporation, a specialty finance company that focuses on the healthcare sector. It operates in two segments, Finance Receivables and Pharmaceutical Development. The company provides customized financing solutions to a range of life science companies, including companies in the biotechnology, medical device, medical diagnostics and related tools, animal health, and pharmaceutical industries, as well as institutions and inventors. It also offers non-discretionary investment advisory services to institutional clients in separately managed accounts to invest in life science finance. In addition, the company engages in the pharmaceutical development, formulation and manufacturing, and licensing business through the Peptelligence platform. Further, it intends to out-license its internal product pipeline to create novel formulations using its proprietary technology to develop treatments for patients and caregivers. The company was formerly known as Kana Software, Inc. and changed its name to SWK Holdings Corporation in December 2009. SWK Holdings Corporation was founded in 1996 and is headquartered in Dallas, Texas.

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 is financially robust with strong profitability and cash flow metrics. Despite some fluctuations in revenue growth, the company maintains a stable balance sheet with low leverage, indicating a solid financial foundation.

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	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: 14.67
• 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 14.67 is above the 20-day moving average (MA) of 14.60, above the 50-day MA of 14.66, and above the 200-day MA of 13.99, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 53.75 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	75 Outperform	$178.20M	10.36	6.58%	―	6.60%	41.37%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WHF	67 Neutral	$162.24M	45.62	1.21%	25.57%	-49.76%	-84.43%
SAMG	66 Neutral	$192.78M	17.58	11.01%	5.28%	4.09%	-2.32%
EARN	60 Neutral	$204.70M	14.55	6.89%	17.61%	271.03%	31.81%
SSSS	45 Neutral	$223.83M	4.83	29.40%	2.67%	168.31%	―

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.

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 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.

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 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.