Quality Investor

Smith & Wesson Brands, Inc.

Rank #243Capital ReturnWatchlistCompare with other stocks

SWBI · Nasdaq · Industrials

Smith & Wesson Brands, Inc. (SWBI) — Rank #243 by gross profitability (GP/assets 0.27) · ROE 4.9% · Piotroski F-Score 6 / 9.

As-of 2026-10-30 · CIK 0001092796 · all metrics point-in-time as of the filing date.

About

Smith & Wesson Brands, Inc. engages in the design, manufacture, and sale of firearms worldwide.

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It offers handguns, including revolvers and pistols; long guns, such as modern sporting rifles, pistol caliber carbines, and lever-action rifles; handcuffs; suppressors; and other firearm-related products. It also provides manufacturing services comprising forging, heat treating, rapid prototyping, tooling, finishing, plating, machining, and custom plastic injection molding, assembly, and distribution services to other businesses; and sells parts purchased through third parties. The company sells its products to firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement, security agencies and officers, and military agencies. It markets its products through independent dealers, retailers, in-store retails, and direct to consumers, and range operations; print, broadcast, and digital advertising campaigns; social and electronic media; and in-store retail merchandising strategies. In addition, the company manufactures firearm accessories and other products, such as headwear, apparel, accessories, magazines, and closeouts. Smith & Wesson Brands, Inc. was formerly known as American Outdoor Brands Corporation and changed its name to Smith & Wesson Brands, Inc. in June 2020.

The company was founded in 1852 and is based in Maryville, Tennessee.

Industry
Aerospace & Defense
Sector
Industrials
State
NV
Filer Category
Accelerated filer
Fiscal Year End
April 30

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

1,378

Industry

Aerospace & Defense

Exchange

Nasdaq

12/12

Flags passed

SWBI passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.27
Return on equity
4.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.40
Current ratio
3.62×
Net cash
$18.70M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.6%

Growth

2/2 pass
Revenue growth
10.4%
Piotroski F-Score
6 / 9
Share dilution
0.0%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 0.27

Gross profitability (GP / assets)

0.27

Primary signal (Novy-Marx).

5th of 12 SIC 34 peers

Return on equity

4.9%

Gross margin

26.9%

11th of 12 SIC 34 peers

Revenue growth (YoY)

10.4%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

3.0%

Revenue CAGR (5Y)

-13.1%

Earnings CAGR (3Y)

-20.6%

FCF CAGR (3Y)

—

Cash Flow Health

Is the cash real?

No warning flags · FCF 389% above net income

Free cash flow

$90.45M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

389.4%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.6%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $18.70M, F-Score 6/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.40

3rd of 12 SIC 34 peers (best = lowest)

Current ratio

3.62×

3rd of 12 SIC 34 peers

Quick ratio

0.71×

Net cash

$18.70M

Cash & equivalents minus total debt.

Piotroski F-Score

6 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

2.5 / 5

Fair
Payout ratio
125.7%0/5 Weak
FCF coverage
3.89×5/5 Strong
Dividend growth streak
5 yr3/5 Good
Balance-sheet health
D/E 0.40 · IC N/A2/5 Fair

Capital allocation quality

Composite score

2.7 / 5

Fair
Share count trend
0.0%2/5 Fair
Buyback timing
N/AN/A
Dividend growth consistency
5 yr3/5 Good
Net debt trajectory(deleveraging)
0.6%3/5 Good

Lifecycle Phase History

20212026
Hypergrowth
Decline
Capital Return

Price History

SWBI-20.6% · -4.5% CAGRSPY+82.9% · +12.8% CAGR