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

SWBI Nasdaq Ordnance & Accessories, (No Vehicles/Guided Missiles) NV CIK: 0001092796
Updated This Month • Analysis: Jun 19, 2026 • SEC Data: 2026-04-30
Combined AI Grade
B
68% Confidence
N/A
B
68% Conf
Pending
Analysis scheduled

📊 SWBI Key Takeaways

Revenue: $523.8M
Net Margin: 3.5%
Free Cash Flow: $90.4M
Current Ratio: 3.20x
Debt/Equity: 0.00x
EPS: $0.41
AI Grade: B with 68% confidence
Smith & Wesson Brands, Inc.. (SWBI) receives a B fundamental grade with 68% confidence from our AI analysis based on SEC 10-K filings. With revenue of $523.8M, net profit margin of 3.5%, and return on equity (ROE) of 4.9%, 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

SWBI demonstrates solid top-line growth of 10.4% and exceptional free cash flow generation (17.3% FCF margin), supported by a fortress balance sheet with no debt. However, net income growth stalled at 0% YoY despite revenue expansion, indicating concerning margin compression and deteriorating operational leverage that offsets positive momentum.

Smith & Wesson Brands, Inc.. Key Strengths (SWBI)

Claude
  • + Strong revenue growth of 10.4% YoY with $523.8M run rate
  • + Exceptional free cash flow generation of $90.4M (17.3% margin) relative to earnings
  • + Fortress balance sheet with zero long-term debt, 3.20x current ratio, and conservative leverage
  • + Solid gross margins of 26.9% in manufacturing-intensive ordnance sector

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

Claude
  • ! Net income flat YoY despite 10.4% revenue growth signals margin compression and rising cost structure
  • ! Thin profitability with 5.6% operating margin and 3.5% net margin limiting resilience
  • ! Poor capital efficiency with only 4.9% ROE and 3.6% ROA despite growth investments
  • ! EPS growth of 36.7% is entirely share buyback driven, masking stagnant underlying earnings power
  • ! Low interest coverage of 2.1x limits financial flexibility despite zero debt

Key Metrics to Watch

Claude
  • * Operating margin expansion or contraction (critical; currently being squeezed)
  • * Net income growth trajectory relative to revenue growth (verify if margin compression reverses)
  • * Free cash flow sustainability and conversion rate
  • * Gross margin trends by product category (potential pricing power deterioration)

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

Revenue
$523.8M
Net Income
$18.5M
EPS (Diluted)
$0.41
Free Cash Flow
$90.4M
Total Assets
$512.8M
Cash Position
$28.2M

💡 AI Analyst Insight

Strong liquidity with a 3.20x current ratio provides a solid financial cushion.

SWBI Profit Margin, ROE & Profitability Analysis

Gross Margin 26.9%
Operating Margin 5.6%
Net Margin 3.5%
ROE 4.9%
ROA 3.6%
FCF Margin 17.3%

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

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

Net Margin
SWBI 3.5%
vs
Sector Avg 12.0%
SWBI Sector
ROE
SWBI 4.9%
vs
Sector Avg 15.0%
SWBI Sector
Current Ratio
SWBI 3.2x
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
4.9%
Sector avg: 15%
Net Profit Margin
3.5%
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
3.20x
Quick Ratio
2.05x
Debt/Equity
0.00x
Debt/Assets
26.6%
Interest Coverage
2.13x
Long-term Debt
N/A

SWBI Revenue & Earnings Growth: 5-Year Financial Trend

SWBI 5-year financial data: 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. Year 2026: Revenue $535.8M, Net Income $41.4M, EPS $0.89.
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 $0.89 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
17.3%
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
$114.2M
Cash generated from operations
Capital Expenditures
$23.7M
Investment in assets
Dividends Paid
$23.2M
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
Jun 17, 2026 10-K swbi-20260430.htm View →
Jun 17, 2026 4 xslF345X06/ownership.xml View →
Jun 17, 2026 8-K d100270d8k.htm View →
May 5, 2026 4 xslF345X06/ownership.xml View →
May 5, 2026 4 xslF345X06/ownership.xml View →

Frequently Asked Questions about SWBI

What is the AI rating for SWBI?

Smith & Wesson Brands, Inc.. (SWBI) has an AI grade of B with 68% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SWBI's key strengths?

Claude: Strong revenue growth of 10.4% YoY with $523.8M run rate. Exceptional free cash flow generation of $90.4M (17.3% margin) relative to earnings.

What are the risks of investing in SWBI?

Claude: Net income flat YoY despite 10.4% revenue growth signals margin compression and rising cost structure. Thin profitability with 5.6% operating margin and 3.5% net margin limiting resilience.

What is SWBI's revenue and growth?

Smith & Wesson Brands, Inc.. reported revenue of $523.8M.

Does SWBI pay dividends?

Smith & Wesson Brands, Inc.. pays dividends, with $23.2M 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 $0.41.

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 grade reflects both perspectives for balanced insights.

What is SWBI's fundamental grade?

Based on our AI fundamental analysis in June 2026, Smith & Wesson Brands, Inc.. has a B grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SWBI stock overvalued or undervalued?

Valuation metrics for SWBI: ROE of 4.9% (sector avg: 15%), net margin of 3.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is SWBI's AI grade for 2026?

Our dual AI analysis gives Smith & Wesson Brands, Inc.. a combined B grade 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 $114.2M, with capital expenditures of $23.7M. FCF margin is 17.3%.

How does SWBI compare to other Market stocks?

Vs Default sector averages: Net margin 3.5% (avg: 12%), ROE 4.9% (avg: 15%), current ratio 3.20 (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: Jun 19, 2026 | Data as of: 2026-04-30 | Powered by Claude AI