As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Smith & Wesson Brands Inc (NASDAQ: SWBI).
Smith & Wesson Brands Inc is a U.S.-based leader in firearm manufacturing. It operates under one reportable segment: Firearms, which includes firearms distributions and manufacturing services. The company manufactures handguns, long guns, sporting rifles, shooting gear, and suppressor products. The firm’s brand portfolio consists of Smith and Wesson, M&P, Thompson/Center Arms, Performance Center, and Gemtech; which are used for defense, law enforcement, hunting, and sporting purposes. The company operates internationally, with the majority of income generated by the U.S. market from its handgun products.
A quick look at the share price history for Smith & Wesson (below) over the past twelve months shows that the price is up 128%. Here’s why the company is undervalued.
Summary
Market Cap: $863 Million
Enterprise Value: $854 Million
Operating Earnings
Operating Earnings: $190 Million
Acquirer’s Multiple
Acquirer’s Multiple: 4.49
Free Cash Flow (TTM)
Free Cash Flow: $244 Million
FCF/EV Yield
FCF/EV Yield: 28%
Other Indicators
Piotroski F-Score: 7
Altman Z-Score: 6.92
Beneish M-Score: -4.24
Shareholder Yield
Shareholder Yield: 1%
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