Smith & Wesson BrandsSWBI -3.24%62 Gross Margin % is 29.76% as of Apr. 2026, which is 6% below its 10-year median of 31.77. GuruFocus rates SWBI with a GF Score™ of 62/100 and a GF Value™ of $13.82 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 342 Aerospace & Defense companies, Smith & Wesson Brands ranks better than 51.46% on this metric.
SWBI's Gross Margin % is ranked better than 51.46% of 342
companies
in the Aerospace & Defense industry
Industry Median: 26.65
vs SWBI: 26.94
Smith & Wesson Brands had a gross margin of 29.76% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Smith & Wesson Brands was -10.30% per year.
Smith & Wesson Brands (NAS:SWBI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Smith & Wesson Brands had a gross margin of 29.76% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Smith & Wesson Brands Gross Margin % Related Terms
Smith & Wesson Brands Gross Margin % Historical Data
* Premium members only.
The historical data trend for Smith & Wesson Brands's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, Smith & Wesson Brands's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Smith & Wesson Brands Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Smith & Wesson Brands's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Smith & Wesson Brands's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Smith & Wesson Brands (SWBI) has a Gross Margin % of 29.76% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Smith & Wesson Brands and its competitors. This is near median its historical median of 31.77. Over the past decade, Smith & Wesson Brands' Gross Margin % has ranged from 26.79 to 43.35. According to the industry distribution chart, Smith & Wesson Brands ranks #166 out of 342 companies in the Aerospace & Defense industry, placing it in the top 48.5%.
Is Smith & Wesson Brands' Gross Margin % too high?
Smith & Wesson Brands' current Gross Margin % of 29.76% is near median its 10-year median of 31.77. Over the past 10 years, this metric has ranged from a low of 26.79 to a high of 43.35. The Aerospace & Defense industry median Gross Margin % is 26.65. Smith & Wesson Brands' value of 29.76% is 11.7% above this industry median. Based on the distribution chart, Smith & Wesson Brands ranks #166 out of 342 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Smith & Wesson Brands has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smith & Wesson Brands' Gross Margin % compare to SPCE and PKE?
According to the Aerospace & Defense industry distribution chart, Smith & Wesson Brands ranks #166 out of 342 companies for Gross Margin %. This puts Smith & Wesson Brands in the upper half of its industry. The industry median Gross Margin % is 26.65. Smith & Wesson Brands' value of 29.76% is 11.7% above this benchmark. Historically, Smith & Wesson Brands' own Gross Margin % has ranged from 26.79 to 43.35 over the past decade. While the company's 10-year median is 31.77 vs. the industry median of 26.65, Smith & Wesson Brands has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Smith & Wesson Brands's current Gross Margin % of 29.76% is 11.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Smith & Wesson Brands and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith & Wesson Brands's current Gross Margin % is 29.76%, which is near median its own 10-year median of 31.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smith & Wesson Brands stock overvalued right now?
Based on GuruFocus' analysis, Smith & Wesson Brands (SWBI) is currently considered Modestly Overvalued. The stock's GF Value™ is $13.82, compared to a current price of $16.12 — trading 16.6% above its estimated fair value. The current Gross Margin % is 29.76%, which is near median its 10-year median of 31.77 and 11.7% above the Aerospace & Defense industry median of 26.65. Smith & Wesson Brands' overall GF Score™ is 62/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Smith & Wesson Brands (SWBI), the current Gross Margin % is 29.76% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Smith & Wesson Brands (SWBI) Overvalued in 2026?
Based on GuruFocus' analysis, Smith & Wesson Brands stock appears to be overvalued.
The current stock price of $16.12 is trading 16.6% above its estimated GF Value™ of $13.82.
GuruFocus considers Smith & Wesson Brands to be Modestly Overvalued.
Key valuation signals for SWBI:
Gross Margin %: 29.76% (near median its 10-year median of 31.77)
GF Value™: $13.82 vs. price of $16.12 (16.6% above fair value)
Industry Position: 11.7% above the Aerospace & Defense median (#166 of 342)
No single metric tells the full story. See the SWBI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smith & Wesson Brands Inc is a U.S.-based company engaged in manufacturing and selling firearms. It operates under one reportable segment: Firearms, which includes firearms distribution and manufacturing services. The company manufactures handguns, long guns, sporting rifles, shooting gear, and suppressor products. The company sells its products under the Smith and Wesson and Gemtech brands, which are used for defense, law enforcement, hunting, and sporting purposes. Geographically, it sells products globally, with maximum income being generated by the U.S. market from its handgun products.
62GF Score
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