Smith & Wesson Brands, Inc. (SWBI) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Smith & Wesson Brands, Inc. (SWBI) Industrial Operations Profile

Smith & Wesson Brands, Inc. designs, manufactures, and sells firearms globally, holding a significant position in the aerospace and defense sector. With a diverse product line including handguns, long guns, and firearm-related products, the company serves a wide range of customers, from individual consumers to law enforcement and military agencies.

What Is the Investment Thesis for SWBI?

Smith & Wesson Brands, Inc. presents a mixed investment thesis. The company's established brand and diverse product line provide a solid foundation, as evidenced by its $594M market capitalization. The dividend yield of 3.58% offers an income stream for investors. However, a high P/E ratio of 24.37 suggests the stock may be overvalued relative to its earnings. The company's profit margin of 2.5% is relatively low, indicating potential challenges in profitability. Growth catalysts include expansion into new markets and product innovation. Potential risks include regulatory changes and fluctuations in consumer demand for firearms.

Based on FMP financials and quantitative analysis

SWBI Key Highlights

Market capitalization of $594M reflects the company's established presence in the firearms industry.

• P/E ratio of 24.37 suggests a potentially high valuation relative to earnings.
• Gross margin of 26.4% indicates the profitability of the company's products after accounting for the cost of goods sold.
• Dividend yield of 3.58% provides an income stream for investors.
• Beta of 0.92 suggests the stock is slightly less volatile than the overall market.

Who Are SWBI's Competitors?

SWBI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are SWBI's Key Strengths?

Strong brand recognition and reputation.

• Diverse product portfolio.
• Established distribution network.
• Manufacturing expertise.

What Are SWBI's Weaknesses?

Reliance on the firearms market, which is subject to regulatory and political pressures.

• Relatively low profit margin.
• Exposure to product liability claims.
• Dependence on third-party suppliers for certain components.

What Could Drive SWBI Stock Higher?

Launch of new firearms models with advanced features in Q3 2026.

• Expansion of direct-to-consumer sales channels through online platforms.
• Strategic partnerships with law enforcement agencies for customized firearms solutions.

What Are the Key Risks for SWBI?

Inconsistent delivery — missed Wall Street EPS estimates in 4 of the last 8 reported quarters.

• Changes in government regulations regarding firearms ownership could negatively impact sales.
• Fluctuations in consumer demand for firearms due to economic conditions or social factors.
• Product liability claims and lawsuits related to firearm-related incidents.
• Increased competition from other firearms manufacturers.

What Are the Growth Opportunities for SWBI?

• Expansion into International Markets: Smith & Wesson has the opportunity to expand its presence in international markets, particularly in regions with growing demand for firearms for law enforcement and personal protection. This expansion could involve establishing new distribution partnerships, tailoring products to meet local regulations, and investing in marketing campaigns to build brand awareness. The global firearms market is estimated to reach $10 billion by 2030, presenting a significant growth opportunity for Smith & Wesson.
• Product Innovation and Diversification: Smith & Wesson can drive growth through continuous product innovation and diversification. This includes developing new firearms models with advanced features, expanding its line of firearm accessories, and exploring opportunities in related markets such as ammunition and tactical gear. Investing in research and development and leveraging customer feedback can help Smith & Wesson stay ahead of the competition and meet evolving customer needs. The market for firearm accessories is projected to grow at a rate of 5% annually.
• Strengthening Relationships with Law Enforcement Agencies: Smith & Wesson can strengthen its relationships with law enforcement agencies by offering customized firearms solutions, providing training programs, and participating in industry events. Building strong partnerships with law enforcement agencies can lead to long-term contracts and recurring revenue streams. The market for law enforcement firearms is estimated at $2 billion annually.
• Direct-to-Consumer Sales Growth: Smith & Wesson can further develop its direct-to-consumer sales channels through its online store and other digital platforms. By offering a wider selection of products, providing personalized customer service, and leveraging targeted marketing campaigns, Smith & Wesson can increase its direct-to-consumer sales and improve its profit margins. The direct-to-consumer market for firearms is growing rapidly, driven by the increasing popularity of online shopping.
• Acquisitions and Strategic Partnerships: Smith & Wesson can pursue acquisitions and strategic partnerships to expand its product portfolio, enter new markets, and gain access to new technologies. This includes acquiring complementary businesses in the firearms industry, partnering with technology companies to develop smart firearms, and collaborating with other manufacturers to share resources and expertise. The firearms industry is consolidating, creating opportunities for strategic acquisitions and partnerships.

What Are SWBI's Competitive Advantages?

• Established brand reputation and history in the firearms industry.
• Diverse product portfolio catering to a wide range of customers.
• Manufacturing capabilities and expertise.
• Distribution network through independent dealers, retailers, and direct-to-consumer channels.

What Does SWBI Do?

Smith & Wesson Brands, Inc., established in 1852, has evolved into a prominent firearms manufacturer, designing, producing, and distributing a wide array of firearms and related products worldwide. The company's product portfolio includes handguns, such as revolvers and pistols, and long guns, including modern sporting rifles and bolt-action rifles. Additionally, Smith & Wesson offers handcuffs, suppressors, and other firearm-related accessories under the Smith & Wesson, M&P, and Gemtech brands. Beyond its core firearms business, Smith & Wesson provides manufacturing services, including forging, heat treating, rapid prototyping, tooling, finishing, plating, machining, and custom plastic injection molding, catering to other businesses under the Smith & Wesson and Smith & Wesson Precision Components brand names. The company serves a diverse customer base, including firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals seeking personal protection, law enforcement agencies, security firms, and military organizations. Smith & Wesson markets its products through independent dealers, retailers, in-store retail channels, and direct-to-consumer sales, employing print, broadcast, and digital advertising campaigns, along with social and electronic media and in-store retail merchandising strategies. Headquartered in Springfield, Massachusetts, Smith & Wesson continues to innovate and adapt to the evolving demands of the global firearms market.

What Products and Services Does SWBI Offer?

• Designs and manufactures handguns, including revolvers and pistols.
• Produces long guns, such as modern sporting rifles and bolt-action rifles.
• Offers handcuffs and suppressors.
• Sells firearm-related products under the Smith & Wesson, M&P, and Gemtech brands.
• Provides manufacturing services like forging, heat treating, and machining.
• Sells parts purchased through third parties.

How Does SWBI Make Money?

• Designs, manufactures, and sells firearms and related accessories.
• Generates revenue through sales to independent dealers, retailers, and direct to consumers.
• Provides manufacturing services to other businesses.
• Markets products through advertising campaigns and social media.

What Industry Does SWBI Operate In?

Smith & Wesson Brands, Inc. operates within the aerospace and defense sector, specifically in the firearms manufacturing industry. The market is influenced by factors such as government regulations, consumer sentiment, and geopolitical events. The industry is competitive, with companies vying for market share through product innovation, marketing, and distribution strategies. Smith & Wesson's long history and established brand provide a competitive advantage, but the company faces ongoing challenges related to regulatory pressures and fluctuating demand.

Who Are SWBI's Key Customers?

• Firearm enthusiasts and collectors.
• Hunters and sportsmen.
• Law enforcement agencies and security officers.
• Military agencies.
• Individuals desiring home and personal protection.

Smith & Wesson Brands, Inc. Financial Trajectory

Smith & Wesson Brands, Inc. (SWBI) reported $112.6M in revenue for Q1 FY2027, a decline of 36.9% compared to the prior quarter. The company recorded net income of $2.6M, with diluted EPS of $0.06. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Industrials. Across the four most recent quarters, SWBI averaged $0.14 in diluted EPS.

Company Profile

Smith & Wesson Brands, Inc. operates in the Aerospace & Defense industry within the Industrials sector. It is headquartered in Maryville, US. The company is led by CEO Mark Peter Smith. SWBI has traded publicly since 1999.

How Smith & Wesson Brands, Inc. Is Valued

Smith & Wesson Brands, Inc. carries a market capitalization of $594M, placing it in the small-cap category. Analyst price targets span from $16.50 to $16.50, with a consensus of $16.50. At the current price of $13.29, that implies approximately 24% upside potential. Relative to its peer group, SWBI's quantitative score of 80/100 is above the peer average of 63/100.

Return on equity for Smith & Wesson Brands, Inc. stands at 6.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.7%, showing how much profit it generates from its asset base. SWBI trades at a trailing price-to-earnings ratio of 24.37, below the Industrials sector average of ~28.00x. Its free cash flow yield is 13.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.62 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.1%, the inverse of the P/E and a quick read on earnings relative to price.

Smith & Wesson Brands, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 5.09 places it in the safe zone, indicating low near-term bankruptcy risk.

Smith & Wesson Brands, Inc. has missed Wall Street's EPS estimate in 4 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 27.2% below estimates on average.

Over the past six months, Smith & Wesson Brands, Inc. insiders filed 15 SEC Form 4 transactions — 7 sales and 8 purchases. On net that is roughly 432K shares acquired (about $777K) — insiders putting money in tends to read as conviction.

SWBI Financials

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SWBI Analyst Consensus

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Latest Smith & Wesson Brands, Inc. Analysis

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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