Smith & Wesson Brands Inc. Common Stock (SWBI)

FairStock Score: 46/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business. Smith & Wesson sells firearms, and its brand plus regulatory barriers give it some protection, but demand is cyclical and politically sensitive. In fiscal Q1 2027, the quarter ended 2026-07-31, revenue was $112.6M and net income was $2.6M, versus revenue of $85.1M and a net loss of $3.4M in fiscal Q1 2026. That is a sharp rebound, but the net margin is only 2.3%, leaving little room for error. Over longer periods, FairStock's Lynch category calls it a SLOW GROWER — Shrinking: profit -40.7% a year over five years and revenue -13.1%. Full-year figures tell the same uneven story: fiscal year 2024 revenue was $535.8M with net income of $41.4M, fiscal year 2025 revenue was $474.7M with net income of $13.4M, and fiscal year 2026 revenue was $523.8M with net income of $18.5M. Financial health is mixed. Debt is low with D/E 0.19, and FairStock's Altman Z-Score is 4.20, but its Piotroski F-Score is 2/9, ROE is 6.63%, and ROCE is 3.83%. Cash flow is a bright spot: trailing-twelve-month free cash flow is $82.0M, a 12.9% FCF yield. At the 2026-10-13 close, FairStock calculates P/E 25.85, P/B 1.71, and a Graham Number of $10.15, implying the price is about 40% above that conservative value. The 3.81% dividend and 0.87 beta are comforts, but I would want a wider margin of safety and evidence that recent growth is durable, not just a cyclical bounce.

In plain English: Smith & Wesson makes handguns, rifles, and related products. The company swung back to a small profit in the quarter ended 2026-07-31, but sales and profits have been uneven and generally weaker over the past several years. At the 2026-10-13 close of $14.22, the price looks a little high compared with the company's earnings and book value, though cash generation and the dividend are real positives.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-07-31) · fiscal Q3 2026 10-Q (period ended 2026-01-31) · fiscal Q2 2026 10-Q (period ended 2025-10-31) · fiscal Q1 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-04-30) · FY2025 10-K (period ended 2025-04-30) · FY2024 10-K (period ended 2024-04-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer