SWBI

Smith & Wesson Brands Inc

Consumer


Presented:06/05/2020
Price:$14.14
Cap:$0.78B
Current Price:$13.04
Cap:$0.58B

Presented

Date06/05/2020
Price$14.14
Market Cap$0.78B
Ent Value$0.73B
P/E Ratio53.26x
Book Value$8.18
Div Yield0%
Shares O/S55.07M
Ave Daily Vol1,506,113
Short Int4.94%

Current

Price$13.04
Market Cap$0.58B
Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. It operates through the Firearms and Outdoor Products & Accessories segments. The Firearms segment comprises the manufacture of handguns, long guns, handcuffs, suppressors, and other firearm-related products for sale to a wide variety of customers. The Outdoor Products & Accessories segment engages in the distribution, manufacture, and design of reloading, gunsmithing, and gun cleaning supplies; stainless-steel cutting tools and accessories; flashlights; tree saws and related trimming accessories; shooting supplies, rests, and other related accessories; apparel; vault accessories; laser grips and laser sights; and a full range of products for survival and emergency preparedness. The company was founded by Michell A. Saltz on June 17, 1991 and is headquartered in Springfield, MA.

Publicly traded companies mentioned herein: Alphabet Inc (GOOG, GOOGL), Amazon.com Inc (AMZN), Smith & Wesson Brands Inc (SWBI)

Highlights

The presenter is long shares of Smith & Wesson Brands Inc (SWBI), which consists of a firearms segment (~75% of revenue) and an outdoor products segment (~25% of revenue). On the firearms business, he highlights the previous peak in demand, which occurred leading up to the 2016 Presidential Election, and notes that the current cycle is proving to be even stronger. In addition, SWBI is in the process of spinning off its outdoor products business, which the presenter also expects to benefit from demand tailwinds. The stock currently trades at ~$15 per share, and he conservatively sees upside to $20+ based on a 10x earnings multiple. 

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Idea Discussion

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