# Smith & Wesson Brands (SWBI.US)

Canonical: https://gigainvestors.com/s/SWBI

Analysis as of: 2026-10-16T07:32:11.681Z. Financial observations: FY2000–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $14.16 per share; close as of 2026-10-15.

Estimated value: low $6.96 per share, central $7.88 per share, high $9.10 per share. Buy at or below the central value $7.88 per share. Valuation as of 2026-10-16T07:32:11.681Z; scenarios are not confidence intervals.

Expected annual return: 6.8% at the stated quote. About 6.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.83×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.04×

- FY2019: 0.06×

- FY2020: 0.07×

- FY2021: 0.30×

- FY2022: 0.29×

- FY2023: 0.10×

- FY2024: 0.08×

- FY2025: 0.05×

- FY2026: 0.06×

- LTM to Jul 2026: 0.07×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 7.9%

- ROIC, second-lowest year: 5.7%

- Typical minus recent gross margin: 5.3 pp

- Typical gross margin (annual median): 32.3%

- Recent gross margin (lower of latest and 3-year median): 26.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.6%

- ROIC including acquisitions, ten-year median: 6.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 6.9%

- FY2019: 5.8%

- FY2020: 8.9%

- FY2021: >100%

- FY2022: 74.3%

- FY2023: 9.8%

- FY2024: 9.0%

- FY2025: 3.8%

- FY2026: 5.7%

- LTM to Jul 2026: 6.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.37×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $50M

- Net income, five-year total: $133M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 1.0 pp

- Working capital / revenue, change between three-year averages: 4.6 pp

- Working capital / revenue, final three-year average: 36.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2023: -0.59×

- FY2024: -0.06×

- FY2025: 1.75×

- FY2026: 1.40×

- LTM to Jul 2026: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 6.9% vs 5.7%

- Per-share earnings: 1.29 to 0.41 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -4.7%

- Ordinary dilution, 5-year annual growth: -4.1%

- Market cap gain: -$857M

- Cumulative retained earnings: $4.6M

- Diluted shares, 10-year annual growth: -4.7%

- Diluted shares, 5-year annual growth: -4.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -13.3%

- Per-share value change: -$0.88

- Per-share value, starting three-year median: $1.29

- Per-share value, ending three-year median: $0.41

- Buybacks concentrated in cheaper years (correlation): 0.81

- Average buyback yield: 4.8%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: $236M

- Cumulative net income, 10 years: $660M

- ROIC, first three-year median: 6.9%

- ROIC, last three-year median: 5.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: $1.73

- FY2018: $0.28

- FY2019: $0.33

- FY2020: -$1.10

- FY2021: $4.55

- FY2022: $4.08

- FY2023: $0.80

- FY2024: $0.86

- FY2025: $0.30

- FY2026: $0.41

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -18.7%

- Receivables to sales index (DSRI): 0.72×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 7.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 6.18×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.06×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 0.5%

- FY2018: -5.6%

- FY2019: -5.1%

- FY2020: -21.4%

- FY2021: -14.2%

- FY2022: 11.4%

- FY2023: 3.7%

- FY2024: -11.6%

- FY2025: 3.7%

- FY2026: -18.7%

## Holders

## Price story

Down 38% since Nov 2021 · sales +5.3%

Story as of 2026-10-16T09:59:38.895Z; price observation 2026-10-15.

Price needs cash profits to grow 8.5% a year for ten years

### Sales · FY2026–2027

sales +5.3%; source https://www.sec.gov/Archives/edgar/data/1092796/000119312526274254/swbi-20260430.htm; observed 2026-06-17.

- FY2018: $607M 

- FY2019: $638M 

- FY2020: $678M 

- FY2021: $1.1B 

- FY2022: $864M 

- FY2023: $479M 

- FY2024: $536M 

- FY2025: $475M 

- FY2026: $524M 

- FY2027: $551M 

### Gross margin · FY2027

gross margin 27.4%; source https://www.sec.gov/Archives/edgar/data/1092796/000119312526274254/swbi-20260430.htm; observed 2026-06-17.

- FY2018: 32.3% 

- FY2019: 35.4% 

- FY2020: 34.6% 

- FY2021: 42.4% 

- FY2022: 43.3% 

- FY2023: 32.2% 

- FY2024: 29.5% 

- FY2025: 26.8% 

- FY2026: 26.9% 

- FY2027: 27.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are USD 523.8 million.

- Source: https://www.sec.gov/Archives/edgar/data/1092796/000119312526274254/swbi-20260430.htm (filed 2026-06-17); FY2026: revenue 523845000; grossProfit 141103000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); SWBI.US: Smith & Wesson Brands, Inc. engages in the design, manufacture, and sale of firearms worldwide. 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. The company was founded in 1852 and is based in Maryville, Tennessee.

### Why customers stay

Margins ranged from 26.8% to 29.5% during 2024–26; it earns 7.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-17); FY2024: grossProfit / revenue = 29.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-17); FY2025: grossProfit / revenue = 26.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1092796/000119312526274254/swbi-20260430.htm (filed 2026-06-17); FY2026: grossProfit / revenue = 26.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-17); 10-year return on capital observations [[2018,0.06914481605607663],[2019,0.05848194337726816],[2020,0.08855327470425393],[2021,1.3949464374364793],[2022,0.7429011108006751],[2023,0.09831130142493408],[2024,0.09025296760141385],[2025,0.037615460595571186],[2026,0.05705164208473083],[2027,0.06679257814693645]]; median 0.07884904538016528. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 9 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-17); FY2017: growth capex 0; upkeep 35514000; cash acquisitions 211069000; owner earnings 141635000. Growth capex plus acquisitions / owner earnings = 1.4902319341970558.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-17); FY2018: growth capex 0; upkeep 19050000; cash acquisitions 23120000; owner earnings 52048000. Growth capex plus acquisitions / owner earnings = 0.44420534890869967.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-17); FY2019: growth capex 0; upkeep 34465000; cash acquisitions 1772000; owner earnings 37373000. Growth capex plus acquisitions / owner earnings = 0.04741390843657186.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-17); FY2021: growth capex 0; upkeep 22684000; owner earnings 260049000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-17); FY2022: growth capex 0; upkeep 24255000; owner earnings 200222000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-17); FY2025: growth capex 0; upkeep 21792000; owner earnings 23478000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1092796/000119312526274254/swbi-20260430.htm (filed 2026-06-17); FY2026: growth capex 0; upkeep 23841000; owner earnings 25951000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-17); Dividend observations: [[2017,0],[2018,8223000],[2019,1573000],[2020,1530000],[2021,8223000],[2022,15035000],[2023,18333000],[2024,22020000],[2025,23096000],[2026,23229000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 2.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); SWBI.US SharesStats.PercentInsiders = 2.35 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits grow 8.5% yearly over ten years; actual decline was 8.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-17); Ten-year compound average after fade. Initial solved rate 0.10892522744409627. Price 14.16; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.3953900720178067 → FY2026 0.5775487948723655. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $26.41 per share

- 2016-11: $23.31 per share

- 2016-12: $21.06 per share

- 2017-01: $21.28 per share

- 2017-02: $19.43 per share

- 2017-03: $19.79 per share

- 2017-04: $22.13 per share

- 2017-05: $22.63 per share

- 2017-06: $22.14 per share

- 2017-07: $20.65 per share

- 2017-08: $16.31 per share

- 2017-09: $15.24 per share

- 2017-10: $14.32 per share

- 2017-11: $14.02 per share

- 2017-12: $12.83 per share

- 2018-01: $11.92 per share

- 2018-02: $8.99 per share

- 2018-03: $10.31 per share

- 2018-04: $10.99 per share

- 2018-05: $12.58 per share

- 2018-06: $12.02 per share

- 2018-07: $9.46 per share

- 2018-08: $14.02 per share

- 2018-09: $15.52 per share

- 2018-10: $13.67 per share

- 2018-11: $12.17 per share

- 2018-12: $12.85 per share

- 2019-01: $12.06 per share

- 2019-02: $12.54 per share

- 2019-03: $9.33 per share

- 2019-04: $9.84 per share

- 2019-05: $8.38 per share

- 2019-06: $9.00 per share

- 2019-07: $9.63 per share

- 2019-08: $6.01 per share

- 2019-09: $5.85 per share

- 2019-10: $7.07 per share

- 2019-11: $8.73 per share

- 2019-12: $9.27 per share

- 2020-01: $9.41 per share

- 2020-02: $9.95 per share

- 2020-03: $8.29 per share

- 2020-04: $9.46 per share

- 2020-05: $11.81 per share

- 2020-06: $21.50 per share

- 2020-07: $23.87 per share

- 2020-08: $18.26 per share

- 2020-09: $15.52 per share

- 2020-10: $16.59 per share

- 2020-11: $15.76 per share

- 2020-12: $17.75 per share

- 2021-01: $16.56 per share

- 2021-02: $17.21 per share

- 2021-03: $17.45 per share

- 2021-04: $17.40 per share

- 2021-05: $21.26 per share

- 2021-06: $34.70 per share

- 2021-07: $23.45 per share

- 2021-08: $24.13 per share

- 2021-09: $20.76 per share

- 2021-10: $21.50 per share

- 2021-11: $22.75 per share

- 2021-12: $17.80 per share

- 2022-01: $17.08 per share

- 2022-02: $17.63 per share

- 2022-03: $15.13 per share

- 2022-04: $13.73 per share

- 2022-05: $15.48 per share

- 2022-06: $13.13 per share

- 2022-07: $14.55 per share

- 2022-08: $13.30 per share

- 2022-09: $10.37 per share

- 2022-10: $11.29 per share

- 2022-11: $11.77 per share

- 2022-12: $8.68 per share

- 2023-01: $11.08 per share

- 2023-02: $10.94 per share

- 2023-03: $12.31 per share

- 2023-04: $12.02 per share

- 2023-05: $11.73 per share

- 2023-06: $13.04 per share

- 2023-07: $12.73 per share

- 2023-08: $11.74 per share

- 2023-09: $12.91 per share

- 2023-10: $14.73 per share

- 2023-11: $13.75 per share

- 2023-12: $13.56 per share

- 2024-01: $13.06 per share

- 2024-02: $13.73 per share

- 2024-03: $17.36 per share

- 2024-04: $16.97 per share

- 2024-05: $16.77 per share

- 2024-06: $14.34 per share

- 2024-07: $16.55 per share

- 2024-08: $14.74 per share

- 2024-09: $12.98 per share

- 2024-10: $12.96 per share

- 2024-11: $13.58 per share

- 2024-12: $10.11 per share

- 2025-01: $10.49 per share

- 2025-02: $10.86 per share

- 2025-03: $9.32 per share

- 2025-04: $9.53 per share

- 2025-05: $9.52 per share

- 2025-06: $8.68 per share

- 2025-07: $7.95 per share

- 2025-08: $8.17 per share

- 2025-09: $9.83 per share

- 2025-10: $9.59 per share

- 2025-11: $8.71 per share

- 2025-12: $9.87 per share

- 2026-01: $10.92 per share

- 2026-02: $11.90 per share

- 2026-03: $14.33 per share

- 2026-04: $15.54 per share

- 2026-05: $15.22 per share

- 2026-06: $15.04 per share

- 2026-07: $14.55 per share

- 2026-08: $12.72 per share

- 2026-09: $14.06 per share

- 2026-10: $14.16 per share

## Annual estimated value (USD per share)

- FY2017: low $19.92 per share, central $24.48 per share, high $28.45 per share

- FY2018: low $9.44 per share, central $10.89 per share, high $12.58 per share

- FY2019: low $12.40 per share, central $14.04 per share, high $16.22 per share

- FY2020: low $13.43 per share, central $15.01 per share, high $17.11 per share

- FY2021: low $19.60 per share, central $22.07 per share, high $25.36 per share

- FY2022: low $21.37 per share, central $27.05 per share, high $31.26 per share

- FY2023: low $7.60 per share, central $8.51 per share, high $9.73 per share

- FY2025: low $6.06 per share, central $6.85 per share, high $7.90 per share

- FY2026: low $6.81 per share, central $7.68 per share, high $8.84 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1092796/000119312526274254/swbi-20260430.htm); period 2026-04-30, filed 2026-06-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations



# SWBI — Smith & Wesson Brands

Held by 1 investor · USD 1,648,618 total · 2025 Q2 · reported price USD 8.68 (split-adjusted).
Page: https://gigainvestors.com/s/SWBI

## Holders (2025 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Norbert Lou (https://gigainvestors.com/PC) | USD 1,648,618 | 0.5% | reduce -70.73% |

## Total held by quarter

- 2022 Q2: USD 6,880,120 · 1 holder · USD 13.13
- 2022 Q3: USD 8,711,194 · 1 holder · USD 10.37
- 2022 Q4: USD 7,291,530 · 1 holder · USD 8.68
- 2023 Q1: USD 10,340,868 · 1 holder · USD 12.31
- 2023 Q2: USD 10,954,096 · 1 holder · USD 13.04
- 2023 Q3: USD 10,844,891 · 1 holder · USD 12.91
- 2023 Q4: USD 11,390,915 · 1 holder · USD 13.56
- 2024 Q1: USD 14,583,060 · 1 holder · USD 17.36
- 2024 Q2: USD 12,046,145 · 1 holder · USD 14.34
- 2024 Q3: USD 10,903,693 · 1 holder · USD 12.98
- 2024 Q4: USD 6,560,945 · 1 holder · USD 10.11
- 2025 Q1: USD 6,048,270 · 1 holder · USD 9.32
- 2025 Q2: USD 1,648,618 · 1 holder · USD 8.68
- 2025 Q3: USD 0 · 0 holders