# Smith & Wesson Brands, Inc. Common Stock (SWBI) — Stock CV

Smith & Wesson Brands, Inc. is a $640M industrial company. Revenue shrank 0.8% over the last year, it keeps 2¢ of every dollar of sales as profit, and its net debt equals ~0.7 years of free cash flow. It trades at 25.6× earnings — in the most expensive third of its own history.

> Smith & Wesson Brands Inc is a U.S.-based company engaged in manufacturing and selling firearms. It operates under one reportable segment: Firearms, which includes firearms distribution and manufacturing services.

## Identity

- **Ticker**: SWBI
- **Sector**: Industrials
- **Industry**: Ordnance & Accessories, (No Vehicles/Guided Missiles)
- **Headquarters**: MARYVILLE, TN
- **Employees**: 1 386
- **Website**: https://www.smith-wesson.com
- **Market cap**: $640M
- **Last price**: $14.18
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $1.09B
- **Net income**: $25.9M
- **Free cash flow**: $69.6M
- **Net debt**: $47.5M
- **P/E**: 25.6
- **Revenue growth (YoY)**: -0.8%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 70 |
| Growth | 12 |
| Profitability | 21 |
| Health | 88 |
| Quality | 77 |
| Moat | 36 |

## Qualifications (beginner checklist) — 8 of 11 passed

- [ ] Revenue growing — -0.8% YoY
- [x] Profitable — $25.9M TTM
- [ ] Profit growing — -19.9% YoY
- [x] Generates cash — $69.6M TTM
- [x] Debt under control — ~0.7y of cash flow to repay
- [ ] Established company — $640M market cap
- [x] Not printing shares — -6.1% shares over ~5y
- [x] Proven track record — 11/12 profitable years
- [x] Financially stable — Altman Z 4.2 — safe
- [x] Pays a dividend — yield 3.72%
- [x] Valuation not extreme — P/E 25.6

## Experience (career milestones)

- **FY2021** — Best year on record: $457M net income
- **2020** — Previously among them was Smith & Wesson until the firearm manufacturer was spun off in 2020
- **2016** — Until 2016 the company was known as Smith & Wesson Holding Corporation
- **2016** — Smith & Wesson Holding Corporation bought Crimson Trace, a laser-sight manufacturer, for $95 million…
- **FY2016** — First recorded profitable year: $194M net income
- **FY2016** — Revenue already above $1B: $1.53B in first reported year
- **May 11, 2001** — Saf-T-Hammer Corporation acquired Smith & Wesson Corporation from Tomkins plc for US$15 million
- **2000** — Saf-T-Hammer, a manufacturer of firearms locks and other safety products, purchased the company with the intention…

## Strengths

- Could repay net debt from ~0.5 years of free cash flow
- Interest covered 6.2× by operating earnings
- Altman Z-Score 4.18 — low bankruptcy-risk zone

## Watch-outs

- Revenue shrinking 0.8% year over year
- Loss-making in 1 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2023 | $1.10B | $77.2M | -$231M |
| FY2024 | $1.27B | $63.6M | -$26.9M |
| FY2025 | $1.11B | $16.4M | -$150M |
| FY2026 | $1.19B | $21.8M | $94.2M |
| FY2027 | $113M | $2.59M | -$20.8M |

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Source: https://stockcv.com/SWBI — derived from company filings; may be delayed or incomplete. Information, not investment advice.