New products accounted for nearly 40% of sales, highlighting the success of their innovation strategy. Smith & Wesson maintains a current ratio of 5.21, indicating strong liquidity. The debt-to-equity ratio is 0.36, suggesting a conservative approach to leverage. However, the company's revenue for the trailing twelve months stands at $471.4 million, with a three-year revenue growth rate of -16.4%.
Cyborg Score Rationale
While Smith & Wesson demonstrates strong liquidity and a robust product portfolio, challenges remain in terms of declining margins and revenue growth. Average selling prices (ASPs) increased by 3.5% year-over-year, with handguns up 2.1% and long guns up 10.2%. The company shows operational improvements but faces macro headwinds.
Top Insights
Smith & Wesson reported solid profitability with $15 million of EBITDAS on net sales of nearly $125 million. The company achieved a significant reduction in inventory, generating healthy operating cash flow of over $27 million in the quarter.
Q4 expected to be the strongest quarter, projecting high single-digit to low double-digit growth over Q3.
While tariff impacts might increase slightly, they are not expected to materially affect profitability.
The gun manufacturer's sales plummeted roughly 50% between its 2021 and 2023 fiscal years, and they have flatlined since.
Named Competitors
Precision Rifles and AR-15 platforms — Leading independent firearms manufacturer
Various firearm products — Diversified sporting products conglomerate