Smith & Wesson Brands, Inc. — Earnings Quality Grade F
SWBI · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 43 days, change +3 days YoY
AR growth -5.4% vs revenue growth -11.4%
Revenue -11.4%, CFFO -106.8%. Cash follows revenue
Expense Quality
Inventory growth 18.3% exceeds COGS -8.0%
CapEx growth -76.0% vs revenue -11.4%. Normal
SG&A/Gross Profit = 75.7%, exceeds 70%
Gross margin 26.8%, change -2.7pp. Stable
Cash Flow Quality
CFFO/NI = -0.54. Only -54% of profit backed by cash
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF < 50% of Net Income for 3 years
Accruals ratio = 3.7%. Low accruals
Cash $0.0B covers only 22% of debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 6% of equity. Manageable
Debt/EBITDA = 2.1x. Healthy
Other assets -7.1% vs revenue -11.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.31 (< -2.22). Unlikely manipulator
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25