SWBI Stock Fair Value Calculator – Smith & Wesson Brands Reports FY2024 Q1 Earnings Results for Period Ending July 31 2023
September 9, 2023
🌥️Earnings Overview
SMITH & WESSON BRANDS ($NASDAQ:SWBI) reported its Q1 FY2024 earnings results on September 7 2023, for the period ending July 31 2023. There was a 35.4% year-over-year increase in total revenue, reaching USD 114.2 million; however, there was a 5.7% decrease in net income to USD 3.1 million.
Share Price
The stock opened at $10.8 but closed at $10.5, a decrease of 3.0% from its prior closing price. This was a significant drop in stock price for the company as they saw an overall decrease in earnings compared to the same period in 2023. This decrease was due to an increase in expenses related to research and development, as well as general and administrative costs. Additionally, the company reported a decrease in revenue due to decreased sales of firearms and accessories.
However, the company is optimistic that they will be able to turn things around in the future and continue to have a positive impact on the industry. With further investments in research and development, Smith & Wesson Brands hopes to continue providing strong firearm products to meet consumer demand. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SWBI. More…
| Total Revenues | Net Income | Net Margin |
| 509.09 | 36.68 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SWBI. More…
| Operations | Investing | Financing |
| 50.22 | -110.26 | 5.07 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SWBI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 537.66 | 154.95 | 8.29 |
Key Ratios Snapshot
Some of the financial key ratios for SWBI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -15.1% | -24.6% | 9.5% |
| FCF Margin | ROE | ROA |
| -11.8% | 7.9% | 5.6% |
Analysis – SWBI Stock Fair Value Calculator
At GoodWhale, we have conducted an analysis of SMITH & WESSON BRANDS’ financials. Our proprietary Valuation Line indicates that the fair value of SMITH & WESSON BRANDS’ share is around $16.2. However, the stock is currently traded at $10.5, which implies that it is undervalued by 35.0%. In other words, SMITH & WESSON BRANDS is trading at a discount which presents an opportunity for investors to get a good return on their investments. More…
Peers
In the world of firearms, there are many different brands that compete for market share. Smith & Wesson is one of the most well-known brands, and they compete against other brands such as AMMO Inc, Sturm Ruger & Co Inc, and Lubawa SA. Each of these companies has their own strengths and weaknesses, but in the end, it is the consumer that decides which brand they prefer.
– AMMO Inc ($NASDAQ:POWW)
As of 2022, the market cap for AMMO Inc is 369.6M. The company has a Return on Equity of 5.44%. AMMO Inc is a company that manufactures and sells ammunition.
– Sturm Ruger & Co Inc ($NYSE:RGR)
Sturm Ruger & Co Inc is a publicly traded company with a market capitalization of 962.3 million as of 2022. The company designs, manufactures, and sells firearms and ammunition in the United States. The company’s products include rifles, pistols, revolvers, and shotguns. The company has a return on equity of 21.12%.
– Lubawa SA ($LTS:0LVN)
Lubawa SA is a publicly traded company with a market capitalization of 386.19M as of 2022. The company’s return on equity (ROE) is 6.91%. Lubawa SA is engaged in the manufacture and sale of textile and non-woven products. The company’s products are used in a variety of industries, including automotive, construction, and medical.
Summary
Smith & Wesson Brands reported its first quarter earnings for fiscal year 2024 on September 7, 2023, with total revenue increasing by 35.4% year over year to USD 114.2 million. Despite this positive growth, net income decreased by 5.7% year over year to USD 3.1 million. This news saw the stock price decrease on the same day. In light of these results, investors should consider the underlying drivers of Smith & Wesson’s growth, such as an increase in consumer demand or a shift in pricing strategies.
They should also consider the potential risks posed by the decrease in net income and the potential impact of any future announcements from the company. Ultimately, investors should seek to understand both the short-term and long-term implications of investing in Smith & Wesson Brands.
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