Stock fact sheet · data as of
Smith & Wesson Brands, Inc. (SWBI): fair value, margin of safety and Wheel Score
Industrials · Aerospace & Defense · United States · High Growth
Is SWBI undervalued?
At 14.18 (close of 16 Oct 2026), SWBI trades 15% under the GLS average fair value of 16.66. 3 of the 9 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
There is a wide gap between Lynch (0.9247) and Payback Time (45.72). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files SWBI under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for SWBI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 8.46 | -40% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 10.13 | -29% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 6.35 | -55% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 0.9247 | -93% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 19.86 | +40% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 44.74 | +216% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 45.72 | +222% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 7.65 | -46% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 6.07 | -57% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 2.35 | -83% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 16.50 | +16% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Smith & Wesson Brands, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 3.3/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 4.3%, ROE 4.9%, ROA 3.6% - with debt at 0.14 times equity and a free-cash-flow yield of 12.9%.
The dividend yield is 3.67% at a payout ratio of 95%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Product One 75%, Product Two 17%, Other Products And Services 7% (fiscal year FY2026).
Institutional ownership scores 8/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 4.3% |
|---|---|---|---|
| GLS Moat | 3.3 / 10 | ROE | 4.9% |
| Debt / equity | 0.14 | ROA | 3.6% |
| Free-cash-flow yield | 12.9% | Payout ratio | 95% |
| Institutions | 8 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 70: Good
With a Wheel Score of 70 - the Good band - Smith & Wesson Brands, Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 19/25, Health 16/20, Moat 5/15, Premium 20/20, Stability 10/20; Moat (5/15) scores lowest.
Implied volatility is 36% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 21,386 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 319k shares a day on a market cap of $634M, with a beta of 0.82; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 19 / 25 | 15% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 5 / 15 | moat 3.3/10 | |
| Premium | 20 / 20 | implied volatility 36% | |
| Stability | 10 / 20 | 319k shares/day, $634M cap, beta 0.82 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 3 Dec 2026, 48 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Aerospace & Defense
The 12 companies below are the closest to Smith & Wesson Brands, Inc. by market cap within the Aerospace & Defense industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ELMT Elmet Group Co. | 19.49 | 5.01 | -289% | 29No options | $594M |
| SATL Satellogic Inc. | 4.13 | - | - | 45Weak | $591M |
| RGR Sturm, Ruger & Company, Inc. | 43.00 | 26.88 | -60% | 54Fair | $687M |
| EVEX Eve Holding, Inc. | 1.67 | - | - | 38Weak | $582M |
| PKE Park Aerospace Corp. | 26.32 | 9.99 | -163% | 51Fair | $572M |
| RCAT Red Cat Holdings, Inc. | 4.73 | - | - | 45Weak | $722M |
| YSS York Space Systems, Inc. | 5.95 | - | - | 41Weak | $817M |
| AVEX Aevex Corp. | 15.19 | 12.43 | -22% | 35Weak | $858M |
| TATT TAT Technologies Ltd. | 31.78 | 43.68 | +27% | 39No options | $413M |
| NPK National Presto Industries, Inc. | 147.35 | 76.46 | -93% | 28No options | $1.1B |
| CDRE Cadre Holdings, Inc. | 25.92 | 31.48 | +18% | 67Good | $1.1B |
| IA Innovative Aerosystems, Inc. | 18.89 | 18.27 | -3% | 45Weak | $338M |
Screen the whole market the same way
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Start free See the Sunday ScanQuestions about SWBI
Is SWBI undervalued right now?
By the GLS models, moderately: at 14.18 the stock trades 15% below the average fair value of 16.66 (data as of 16 Oct 2026).
What is the Wheel Score of SWBI and what does it mean?
SWBI scores 70 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for SWBI?
16.66 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Smith & Wesson Brands, Inc. report earnings next?
The next earnings report is due on 3 Dec 2026 (after the close), 48 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does SWBI have listed options, and how liquid are they?
Yes. The nightly snapshot found 244 listed contracts with 21,386 open interest across all expiries and implied volatility of 36% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.