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

Smith & Wesson Brands, Inc. designs, manufactures, and distributes firearms and related products under the Smith & Wesson, M&P, and Gemtech brand names. Its firearm portfolio encompasses handguns such as revolvers and pistols, long guns including modern sporting rifles and bolt action rifles, as well as handcuffs, suppressors, and accessories. Through its Smith & Wesson Precision Components division, the company also offers manufacturing services to third parties, including forging, heat treating, rapid prototyping, tooling, finishing, plating, machining, and custom plastic injection molding. It serves hunters, collectors, enthusiasts, competitive shooters, personal protection buyers, law enforcement agencies, security personnel, and military organizations worldwide.

Over a five-year period from FY2021 to FY2026, revenue posted a compound annual growth rate of -13.1%. Annual revenue contracted from $864.1M in FY2022 to $474.7M in FY2025 before rising 10.4% to $523.8M in FY2026. Gross margin moderated from 43.3% in FY2022 to 26.9% in FY2026, while net margin fell from 22.5% to 3.5% over the same timeframe. Net income reached $18.5M in FY2026, generating diluted EPS of $0.40. In the latest quarter ended July 31, 2026, quarterly revenue grew 32.3% year-over-year, and quarterly earnings grew 86.7% year-over-year. TTM revenue stands at $551.4M with a net profit margin of 4.4%.

As of July 31, 2026, Smith & Wesson held $25.2M in cash and short-term investments against total debt of $72.8M, resulting in net debt of $47.5M. The company shows a debt-to-equity ratio of 0.19 and a current ratio of 3.62, supported by $373.7M in shareholders' equity. In FY2026, operating cash flow recovered to $114.2M, while capital expenditures were $23.8M, generating $90.4M in free cash flow. Capital return included $23.2M in dividends paid, alongside share issuance of $1.6M, with share count down 6.6% over five years.

Smith & Wesson trades at a trailing P/E of 26.2x and a forward P/E of 11.8x, compared to medians of 24.8x and 17.2x, respectively, for its US-listed Industrials peers. Its EV/EBITDA of 9.4x sits below the peer median of 13.9x, and its price-to-sales multiple is 1.1x versus the peer median of 1.5x. Over the past year, SWBI shares returned 45.3%, outperforming the S&P 500 (SPY) return of 16.8%. However, its five-year return stands at -18.6%, compared to an 83.0% gain for the S&P 500.

Smith & Wesson pays a quarterly dividend with an annual forward payout of $0.52 per share, yielding 3.68% as of October 16, 2026. The dividend has been paid for 7 consecutive years and achieved a 5-year annualized dividend growth rate of 39.1%. The company's payout ratio is 96.3%, and its last ex-dividend date was September 17, 2026.

Consensus coverage shows 2 Strong Buy ratings, 0 Buy, 0 Hold, 0 Sell, and 0 Strong Sell ratings. The mean price target is $17.25, representing an upside of 22.0% from the last close of $14.14. For the fiscal year ending April 30, 2027, consensus estimates project revenue of $559.4M and EPS of $0.55, reflecting expected EPS growth of 34.2%. Smith & Wesson beat EPS estimates in each of the last 4 quarters, and its next earnings date is December 3, 2026.

This page is an AI-written research summary of Smith & Wesson Brands, Inc. (SWBI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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