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Smith & Wesson Brands

SWBI
50
Aerospace & Defense · Industrials
Also trades as: 0HEM.L GBP 0.13 (-5.21%)
Price
$13.71
-0.64 (-4.46%)
Market Cap
$614.8M
Exchange
NASDAQ
Winston Score
50
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Oct 25, 2026 · filings through Jul 31, 2026

§How the score breaks down

Quality
Mixed
9/30
Growth
Good
12/20
Cash Flow
Exceptional
9/10
Stability
Strong
8/10
Valuation
Mixed
4/10
Ownership
Mixed
6/15
Dividends
Mixed
2/5

50 of 100 counted points = Winston Score 50.

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Share count falling — buybacks

−5.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 47.7M (2022) → 45.3M (2026)

§Winston Score History

The full picture

Smith & Wesson Brands (now officially named American Outdoor Brands after a spin-off, though the firearms division retained the Smith & Wesson name) makes handguns, rifles, and other firearms sold to everyday consumers, law enforcement agencies, and military buyers. The company owns the Smith & Wesson brand, one of the most recognized names in American firearms history, dating back to 1852. It competes in the U.S. consumer firearms market alongside rivals like Sturm Ruger and Glock.

The company earns money primarily by selling firearms through licensed dealers, distributors, and direct channels across the United States, with limited international sales. Its main competitive advantage is brand recognition and a broad product lineup, but the business is highly sensitive to consumer demand cycles, which tend to spike during periods of political uncertainty and slow sharply afterward. The key risk is that demand normalization after recent elevated buying cycles, combined with ongoing regulatory pressure on firearms, could continue to weigh on revenue and margins.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+32.3% YoY

YoY Growth Rate

Revenue accelerating

Reported EPS Growth

+175.0% YoY

Quarterly reporting periods ended:

31 Jul 2025: $-0.0771

31 Jul 2026: $0.0578

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS increased year over year

R&D Spend

$10M/ year

↑ Rising (+8% vs prior year)

2.0% of revenue

Below sector average (4%)

R&D investment increasing — building for the future

Insider Activity

3.5%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~4 months

$25M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Short runway — potential dilution ahead through share issuance

Revenue accelerating

Smith & Wesson Brands grew revenue 32% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
28.7%
Modest — 28.7% gross margin
Profit after running costs
Operating Margin
3.7%
Thin — 3.7% operating margin
Return on the money invested
ROCE
8.2%
Below par — 8.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+17.0%
Fast-growing sales (+17.0% YoY)
Profit growth
EPS YoY
+99.3%
Earnings growing fast (+99.3% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
463%
Turns 463% of profit into real cash
Spare cash per sale
FCF Margin
14.9%
Converts sales into free cash efficiently (14.9%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.19
Conservative — low debt load (0.19)
Covers its interest
Interest Cover
5.88x
Adequate interest coverage (5.9x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
25.1x
Growth-priced — P/E 25.1

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+0.0
GROWING
Earnings roughly flat

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Dividends

Dividend
Dividend Yield
3.52%
Moderate income — 3.52% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+0.0%
Dividend flat
Payout Ratio
95%
no trend
Most of the profit goes out as dividends. Little left to reinvest, and less cushion if earnings dip.

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