Smith & Wesson BrandsSTU:SWS -1.69%62 Operating Margin % is 12.09% as of Apr. 2026, which is 30% above its 10-year median of 9.27. GuruFocus rates STU:SWS with a GF Score™ of 62/100 and a GF Value™ of €12.03 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 347 Aerospace & Defense companies, Smith & Wesson Brands ranks worse than 59.08% on this metric.
Smith & Wesson Brands (STU:SWS) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Smith & Wesson Brands Operating Margin % Related Terms
Smith & Wesson Brands Operating Margin % Historical Data
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The historical data trend for Smith & Wesson Brands's Operating 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.
STU:SWS vs SPCE, PKE, RGR: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Smith & Wesson Brands's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Smith & Wesson Brands's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Smith & Wesson Brands's Operating Margin % falls into.
Smith & Wesson Brands Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Smith & Wesson Brands's Operating Margin % for the fiscal year that ended in Apr. 2026 is calculated as
* 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.
Smith & Wesson Brands (STU:SWS) has a Operating Margin % of 12.09% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Smith & Wesson Brands and its competitors. This is 30% above median its historical median of 9.27. Over the past decade, Smith & Wesson Brands' Operating Margin % has ranged from 4.46 to 30.18. According to the industry distribution chart, Smith & Wesson Brands ranks #205 out of 347 companies in the Aerospace & Defense industry, placing it in the top 59.1%.
Is Smith & Wesson Brands' Operating Margin % too high?
Smith & Wesson Brands' current Operating Margin % of 12.09% is 30% above median its 10-year median of 9.27. Over the past 10 years, this metric has ranged from a low of 4.46 to a high of 30.18. The Aerospace & Defense industry median Operating Margin % is 7.75. Smith & Wesson Brands' value of 12.09% is 56% above this industry median. Based on the distribution chart, Smith & Wesson Brands ranks #205 out of 347 companies in the Aerospace & Defense industry, which is below 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' Operating Margin % compare to SPCE and PKE?
According to the Aerospace & Defense industry distribution chart, Smith & Wesson Brands ranks #205 out of 347 companies for Operating Margin %. This places Smith & Wesson Brands in the lower half of its industry. The industry median Operating Margin % is 7.75. Smith & Wesson Brands' value of 12.09% is 56% above this benchmark. Historically, Smith & Wesson Brands' own Operating Margin % has ranged from 4.46 to 30.18 over the past decade. While the company's 10-year median is 9.27 vs. the industry median of 7.75, 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 Operating Margin % for an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Smith & Wesson Brands's current Operating Margin % of 12.09% is 56% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Smith & Wesson Brands and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith & Wesson Brands's current Operating Margin % is 12.09%, which is 30% above median its own 10-year median of 9.27. 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 (STU:SWS) is currently considered Modestly Overvalued. The stock's GF Value™ is €12.03, compared to a current price of €14.26 — trading 18.5% above its estimated fair value. The current Operating Margin % is 12.09%, which is 30% above median its 10-year median of 9.27 and 56% above the Aerospace & Defense industry median of 7.75. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Smith & Wesson Brands (STU:SWS), the current Operating Margin % is 12.09% 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 (STU:SWS) Overvalued in 2026?
Based on GuruFocus' analysis, Smith & Wesson Brands stock appears to be overvalued.
The current stock price of €14.26 is trading 18.5% above its estimated GF Value™ of €12.03.
GuruFocus considers Smith & Wesson Brands to be Modestly Overvalued.
Key valuation signals for STU:SWS:
Operating Margin %: 12.09% (30% above median its 10-year median of 9.27)
GF Value™: €12.03 vs. price of €14.26 (18.5% above fair value)
Industry Position: 56% above the Aerospace & Defense median (#205 of 347)
No single metric tells the full story. See the STU:SWS 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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