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Smith & Wesson Brands
(NASDAQ:SWBI)
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Rating:64Neutral
Price Target:
$14.00
▲(7.12% Upside)
Action:Reiterated
Date:09/06/26
The score reflects improving fundamentals and strong, upbeat guidance (revenue growth outlook, market-share gains, better margins) supported by a conservative balance sheet and renewed free-cash-flow generation. Offsetting these positives, the technical picture is notably weak with the stock trading below key moving averages and negative MACD, and valuation is only moderate given a ~23.63 P/E despite the supportive ~4.03% dividend yield.
Positive Factors
Market-share gains and revenue momentum
Shipments materially outpaced the broader firearms market, indicating that Smith & Wesson is gaining share rather than merely benefiting from industry growth. Combined with strong quarterly sales and positive full-year guidance, this supports a durable demand and distribution advantage over the next several quarters.
Negative Factors
Profitability remains below prior-cycle levels
Although profitability has recovered from FY2025, margins remain well below earlier levels, indicating that earnings power has not fully normalized. Sustained margin compression leaves less room for mistakes, limits returns on invested capital, and makes future earnings more dependent on mix and cost execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Market-share gains and revenue momentum
Shipments materially outpaced the broader firearms market, indicating that Smith & Wesson is gaining share rather than merely benefiting from industry growth. Combined with strong quarterly sales and positive full-year guidance, this supports a durable demand and distribution advantage over the next several quarters.
Read all positive factors
Smith & Wesson Brands Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business segments, highlighting which areas are driving growth and profitability, and where there might be opportunities or challenges.
Breaks down revenue across different business segments, highlighting which areas are driving growth and profitability, and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlySmith & Wesson Brands (SWBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$577.98M
Dividend Yield4.03%
Average Volume (3M)522.38K
Price to Earnings (P/E)23.6
Beta (1Y)0.53
Revenue Growth16.96%
EPS Growth100.15%
CountryUS
Employees1,382
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.55
Shares Outstanding44,839,680
10 Day Avg. Volume697,112
30 Day Avg. Volume522,382
Financial Highlights & Ratios
PEG Ratio0.93
Price to Book (P/B)1.84
Price to Sales (P/S)1.32
P/FCF Ratio7.66
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.50Price Target Upside26.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.51
Revenue Forecast (FY)$550.96M
Smith & Wesson Brands Business Overview & Revenue Model
Company Description
Smith & Wesson Brands, Inc. (SWBI) is a leading global enterprise engaged in the design, production, and worldwide sale of firearms. Their extensive product range features various handguns, including revolvers and semi-automatic pistols, along wit...
How the Company Makes Money
Smith & Wesson Brands primarily makes money by selling firearms—especially handguns (pistols and revolvers)—to a network of customers that typically includes wholesalers, distributors, and retailers who then sell to end consumers, as well as sales...
Smith & Wesson Brands Earnings Call Summary
Earnings Call Date:Sep 03, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 03, 2026
Earnings Call Sentiment Positive
The call was strongly positive. The company reported substantial year-over-year gains in sales, adjusted EBITDA, EPS, shipments, market share, ASPs, and professional-channel activity, while maintaining a healthy inventory position and positive full-year revenue guidance. The main challenges were higher operating expenses, supplier and labor costs, increased cash usage, and expected near-term expense growth, but these were outweighed by the reported operating momentum and demand strength.Positive Updates
Strong First-Quarter Financial Performance
Net sales were $112.6 million, up 32.3% year over year, while adjusted EBITDA increased 86%. EPS improved to $0.06 from a loss of $0.08 in the prior-year quarter, supported by higher revenue and associated margin and lower interest expense due to lower net debt.
Negative Updates
Higher Operating Expenses
First-quarter operating expenses were $28.1 million, $3 million higher than the prior-year comparable quarter. The increase was driven by legal expenses, profit-related compensation, volume-related selling expenses and freight, and higher advertising costs.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong First-Quarter Financial Performance
Net sales were $112.6 million, up 32.3% year over year, while adjusted EBITDA increased 86%. EPS improved to $0.06 from a loss of $0.08 in the prior-year quarter, supported by higher revenue and associated margin and lower interest expense due to lower net debt.
Read all positive updates
Company Guidance
The company expects Q2 sales of roughly 10% above last year in a normal seasonal environment with strong demand, Q2 gross margin to be 200 to 300 basis points higher than last year's Q2, operating expenses to be 10% to 15% higher than in Q1, and an effective tax rate of approximately 30%; for the full year, it expects fiscal 2027 revenue to grow approximately 5% to 7% over FY '26 and capital spending for the year to be between $45 and $50 million, while channel inventory is expected to have no impact, positively or negatively, on Q2 and ASP levels are expected to continue going forward.Smith & Wesson Brands Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
76
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 551.36M | 523.85M | 474.66M | 535.83M | 479.24M | 864.13M |
| Gross Profit | 151.30M | 141.10M | 127.18M | 158.09M | 154.54M | 374.56M |
| EBITDA | 66.92M | 61.19M | 55.71M | 84.01M | 81.10M | 281.64M |
| Net Income | 24.48M | 18.48M | 13.43M | 39.61M | 36.88M | 194.49M |
Balance Sheet | ||||||
| Total Assets | 523.30M | 512.77M | 559.61M | 577.43M | 541.29M | 497.48M |
| Cash, Cash Equivalents and Short-Term Investments | 25.23M | 33.35M | 25.23M | 60.84M | 53.56M | 120.73M |
| Total Debt | 72.76M | 53.14M | 114.73M | 77.80M | 64.46M | 40.28M |
| Total Liabilities | 149.60M | 136.21M | 187.16M | 177.51M | 156.67M | 136.96M |
| Stockholders Equity | 373.70M | 376.56M | 372.45M | 399.91M | 384.62M | 360.51M |
Cash Flow | ||||||
| Free Cash Flow | 82.03M | 90.35M | -29.02M | 15.79M | -73.17M | 113.56M |
| Operating Cash Flow | 113.46M | 114.19M | -7.22M | 106.74M | 16.73M | 137.81M |
| Investing Cash Flow | -34.01M | -28.24M | -19.17M | -81.49M | -89.78M | -24.12M |
| Financing Cash Flow | -78.71M | -83.00M | -9.21M | -17.97M | 5.88M | -105.99M |
Smith & Wesson Brands Technical Analysis
Negative
13.07
Price Trends
14.41
Negative
14.68
Negative
13.06
Negative
Market Momentum
-0.53
Positive
36.92
Neutral
20.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWBI, the sentiment is Negative. The current price of 13.07 is below the 20-day moving average (MA) of 13.58, below the 50-day MA of 14.41, and above the 200-day MA of 13.06, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 36.92 is Neutral, neither overbought nor oversold. The STOCH value of 20.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SWBI.
Smith & Wesson Brands Risk Analysis
Smith & Wesson Brands disclosed 33 risk factors in its most recent earnings report. Smith & Wesson Brands reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Smith & Wesson Brands Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $615.00M | 50.12 | 4.29% | 1.14% | 7.64% | 138.23% | |
64 Neutral | $577.98M | 23.63 | 6.63% | 4.03% | 16.96% | 100.15% | |
64 Neutral | $251.75M | 85.10 | 2.43% | ― | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | $86.13M | -24.29 | -5.85% | ― | 5.15% | -124.82% | |
48 Neutral | $34.98M | -12.64 | -6.13% | ― | -33.51% | -788.76% |
* General Sector Average
SWBI
Smith & Wesson Brands
12.89
4.43
52.44%
RGR
Sturm Ruger & Company
38.49
3.28
9.31%
VTSI
VirTra
3.09
-2.61
-45.79%
POWW
AMMO
2.17
0.73
50.69%
BYRN
Byrna Technologies
3.68
-16.56
-81.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.