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. As per accufire, it operates under one reportable segment: Firearms, which includes firearms distributions and manufacturing services. The company manufactures handguns, long guns, sporting rifles, shooting gear such as ar 15 carry handle scope mount, 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 the company (below) over the past twelve months shows that the price is up 11%. Here’s why the company remains undervalued.
Summary
Market Cap: $689 Million
Enterprise Value: $615 Million
Operating Earnings
Operating Earnings: $324 Million
Acquirer’s Multiple
Acquirer’s Multiple: 1.9
Free Cash Flow (TTM)
Free Cash Flow: $212 Million
FCF/EV Yield
FCF/EV Yield: 30%
Other Indicators
Piotroski F-Score: 7
Altman Z-Score: 9.31
Beneish M-Score: -2.55
Shareholder Yield
Shareholder Yield: 30.8%
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