Smith Wesson Operating Margin vs. Price To Earning
| SWBI Stock | USD 13.58 0.12 0.88% |
Smith Wesson Operating Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.6 | 0.295 |
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For Smith Wesson profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Smith Wesson to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Smith Wesson Brands utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Smith Wesson's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Smith Wesson Brands over time as well as its relative position and ranking within its peers.
Smith |
Smith Wesson's Revenue Breakdown by Earning Segment
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Is Leisure Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Smith Wesson. If investors know Smith will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Smith Wesson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.047 | Dividend Share 0.49 | Earnings Share 0.74 | Revenue Per Share 11.178 | Quarterly Revenue Growth (0.23) |
The market value of Smith Wesson Brands is measured differently than its book value, which is the value of Smith that is recorded on the company's balance sheet. Investors also form their own opinion of Smith Wesson's value that differs from its market value or its book value, called intrinsic value, which is Smith Wesson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Smith Wesson's market value can be influenced by many factors that don't directly affect Smith Wesson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Smith Wesson's value and its price as these two are different measures arrived at by different means. Investors typically determine if Smith Wesson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Smith Wesson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Smith Wesson Brands Price To Earning vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Smith Wesson's current stock value. Our valuation model uses many indicators to compare Smith Wesson value to that of its competitors to determine the firm's financial worth. Smith Wesson Brands is currently regarded as top stock in operating margin category among its peers. It also is currently regarded as top stock in price to earning category among its peers reporting about 174.40 of Price To Earning per Operating Margin. As of now, Smith Wesson's Operating Profit Margin is decreasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Smith Wesson's earnings, one of the primary drivers of an investment's value.Smith Price To Earning vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Smith Wesson |
| = | 0.01 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Smith Wesson |
| = | 2.18 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Smith Price To Earning Comparison
Smith Wesson is currently under evaluation in price to earning category among its peers.
Smith Wesson Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Smith Wesson, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Smith Wesson will eventually generate negative long term returns. The profitability progress is the general direction of Smith Wesson's change in net profit over the period of time. It can combine multiple indicators of Smith Wesson, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 84 K | 88.1 K | |
| Operating Income | 44.8 M | 67.1 M | |
| Net Income | 39.6 M | 39.2 M | |
| Income Before Tax | 49.4 M | 63 M | |
| Total Other Income Expense Net | 4.6 M | 4.8 M | |
| Income Tax Expense | 9.8 M | 9.3 M | |
| Net Income Applicable To Common Shares | 42.4 M | 40.3 M | |
| Interest Income | 10.1 M | 8.6 M | |
| Net Interest Income | -2.1 M | -2.2 M | |
| Net Income From Continuing Ops | 39.6 M | 37.6 M | |
| Non Operating Income Net Other | 135 K | 128.2 K | |
| Change To Netincome | -2.1 M | -2 M | |
| Net Loss | 0.86 | (0.23) | |
| Income Quality | 2.69 | 0.68 | |
| Net Income Per E B T | 0.80 | 1.02 |
Smith Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Smith Wesson. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Smith Wesson position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Smith Wesson's important profitability drivers and their relationship over time.
Use Smith Wesson in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Smith Wesson position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Smith Wesson will appreciate offsetting losses from the drop in the long position's value.Smith Wesson Pair Trading
Smith Wesson Brands Pair Trading Analysis
The ability to find closely correlated positions to Smith Wesson could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Smith Wesson when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Smith Wesson - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Smith Wesson Brands to buy it.
The correlation of Smith Wesson is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Smith Wesson moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Smith Wesson Brands moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Smith Wesson can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Smith Wesson position
In addition to having Smith Wesson in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Smith Wesson's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Smith Wesson Brands at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Smith Wesson's income statement, its balance sheet, and the statement of cash flows.