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Smith & Wesson Brands, Inc.. (SWBI) Stock Fundamental Analysis & AI Rating 2026

SWBI Nasdaq Ordnance & Accessories, (No Vehicles/Guided Missiles) NV CIK: 0001092796
Recently Updated • Analysis: Apr 16, 2026 • SEC Data: 2026-01-31
SELL
75% Conf
Pending
Analysis scheduled

📊 SWBI Key Takeaways

Revenue: $345.5M
Net Margin: 0.7%
Free Cash Flow: $20.7M
Current Ratio: 4.50x
Debt/Equity: 0.00x
EPS: $0.05
AI Rating: SELL with 75% confidence
Smith & Wesson Brands, Inc.. (SWBI) receives a SELL rating with 75% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $345.5M, net profit margin of 0.7%, and return on equity (ROE) of 0.6%, Smith & Wesson Brands, Inc.. demonstrates mixed fundamentals in the Market sector. Below is our complete SWBI stock analysis for 2026.

Is Smith & Wesson Brands, Inc.. (SWBI) a Good Investment?

Claude

Smith & Wesson faces severe operational headwinds with 11.4% YoY revenue decline and collapsing profitability—net margin compressed to 0.7% with minimal operating efficiency at 2.3%. The 66.3% diluted EPS decline despite flat net income signals substantial shareholder value destruction through equity dilution.

Why Buy Smith & Wesson Brands, Inc.. Stock? SWBI Key Strengths

Claude
  • + Exceptional liquidity position with 4.5x current ratio and minimal long-term debt obligations
  • + Positive free cash flow of $20.7M demonstrates cash-generative capability despite earnings pressures
  • + Stable stockholders' equity of $363.4M provides financial cushion against operating losses

SWBI Stock Risks: Smith & Wesson Brands, Inc.. Investment Risks

Claude
  • ! Revenue declining 11.4% YoY with no evidence of demand stabilization in ordnance sector
  • ! Net margin of 0.7% and operating margin of 2.3% are unsustainably thin with no margin recovery
  • ! Diluted EPS collapsed 66.3% YoY despite flat net income, indicating severe shareholder dilution and capital destruction
  • ! Interest coverage ratio of 0.6x shows operating income insufficient to cover financial obligations; ROE of 0.6% and ROA of 0.4% indicate capital is generating virtually no returns

Key Metrics to Watch

Claude
  • * Revenue stabilization and growth trajectory reversal
  • * Gross margin defense and gross profit recovery
  • * Earnings per share trend and share dilution rate

Smith & Wesson Brands, Inc.. (SWBI) Financial Metrics & Key Ratios

Revenue
$345.5M
Net Income
$2.3M
EPS (Diluted)
$0.05
Free Cash Flow
$20.7M
Total Assets
$538.0M
Cash Position
$18.4M

💡 AI Analyst Insight

Strong liquidity with a 4.50x current ratio provides a solid financial cushion.

SWBI Profit Margin, ROE & Profitability Analysis

Gross Margin 25.5%
Operating Margin 2.3%
Net Margin 0.7%
ROE 0.6%
ROA 0.4%
FCF Margin 6.0%

SWBI vs Market Sector: How Smith & Wesson Brands, Inc.. Compares

How Smith & Wesson Brands, Inc.. compares to Market sector averages

Net Margin
SWBI 0.7%
vs
Sector Avg 12.0%
SWBI Sector
ROE
SWBI 0.6%
vs
Sector Avg 15.0%
SWBI Sector
Current Ratio
SWBI 4.5x
vs
Sector Avg 1.8x
SWBI Sector
Debt/Equity
SWBI 0.0x
vs
Sector Avg 0.7x
SWBI Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Smith & Wesson Brands, Inc.. Stock Overvalued? SWBI Valuation Analysis 2026

Based on fundamental analysis, Smith & Wesson Brands, Inc.. has mixed fundamental signals relative to the Market sector in 2026.

Return on Equity
0.6%
Sector avg: 15%
Net Profit Margin
0.7%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Smith & Wesson Brands, Inc.. Balance Sheet: SWBI Debt, Cash & Liquidity

Current Ratio
4.50x
Quick Ratio
3.01x
Debt/Equity
0.00x
Debt/Assets
32.5%
Interest Coverage
0.57x
Long-term Debt
N/A

SWBI Revenue & Earnings Growth: 5-Year Financial Trend

SWBI 5-year financial data: Year 2021: Revenue $1.1B, Net Income $18.4M, EPS $0.33. Year 2022: Revenue $1.1B, Net Income -$61.2M, EPS $-1.10. Year 2023: Revenue $1.1B, Net Income $252.0M, EPS $4.55. Year 2024: Revenue $864.1M, Net Income $194.5M, EPS $4.08. Year 2025: Revenue $535.8M, Net Income $36.9M, EPS $0.80.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Smith & Wesson Brands, Inc..'s revenue has declined by 49% over the 5-year period, indicating business contraction. The most recent EPS of $0.80 reflects profitable operations.

SWBI Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
6.0%
Free cash flow / Revenue

SWBI Quarterly Earnings & Performance

Quarterly financial performance data for Smith & Wesson Brands, Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2026 $115.9M $2.1M $0.05
Q2 2026 $124.7M -$1.5M $-0.03
Q3 2025 $115.9M $1.7M $0.04
Q1 2025 $85.1M -$1.9M $-0.04
Q3 2024 $129.0M $7.9M $0.17
Q2 2024 $121.0M $2.0M $0.04
Q1 2024 $84.4M -$2.1M $-0.05
Q3 2023 $129.0M $11.1M $0.24

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Smith & Wesson Brands, Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$39.6M
Cash generated from operations
Capital Expenditures
$18.9M
Investment in assets
Dividends Paid
$17.4M
Returned to shareholders

SWBI SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Smith & Wesson Brands, Inc.. (CIK: 0001092796)

📋 Recent SEC Filings

Date Form Document Action
Mar 5, 2026 10-Q swbi-20260131.htm View →
Mar 5, 2026 8-K d120095d8k.htm View →
Dec 4, 2025 10-Q swbi-20251031.htm View →
Dec 4, 2025 8-K d124610d8k.htm View →
Nov 12, 2025 4 xslF345X05/ownership.xml View →

Frequently Asked Questions about SWBI

What is the AI rating for SWBI?

Smith & Wesson Brands, Inc.. (SWBI) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SWBI's key strengths?

Claude: Exceptional liquidity position with 4.5x current ratio and minimal long-term debt obligations. Positive free cash flow of $20.7M demonstrates cash-generative capability despite earnings pressures.

What are the risks of investing in SWBI?

Claude: Revenue declining 11.4% YoY with no evidence of demand stabilization in ordnance sector. Net margin of 0.7% and operating margin of 2.3% are unsustainably thin with no margin recovery.

What is SWBI's revenue and growth?

Smith & Wesson Brands, Inc.. reported revenue of $345.5M.

Does SWBI pay dividends?

Smith & Wesson Brands, Inc.. pays dividends, with $17.4M distributed to shareholders in the trailing twelve months.

Where can I find SWBI SEC filings?

Official SEC filings for Smith & Wesson Brands, Inc.. (CIK: 0001092796) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SWBI's EPS?

Smith & Wesson Brands, Inc.. has a diluted EPS of $0.05.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is SWBI a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Smith & Wesson Brands, Inc.. has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is SWBI stock overvalued or undervalued?

Valuation metrics for SWBI: ROE of 0.6% (sector avg: 15%), net margin of 0.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy SWBI stock in 2026?

Our dual AI analysis gives Smith & Wesson Brands, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SWBI's free cash flow?

Smith & Wesson Brands, Inc..'s operating cash flow is $39.6M, with capital expenditures of $18.9M. FCF margin is 6.0%.

How does SWBI compare to other Market stocks?

Vs Default sector averages: Net margin 0.7% (avg: 12%), ROE 0.6% (avg: 15%), current ratio 4.50 (avg: 1.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 16, 2026 | Data as of: 2026-01-31 | Powered by Claude AI