Smith & Wesson BrandsSWBI -2.87%63 Return-on-Tangible-Equity is 18.60% as of Apr. 2026, which is 55% above its 10-year median of 11.97. GuruFocus rates SWBI with a GF Score™ of 63/100 and a GF Value™ of $13.82 (Fairly Valued). The stock has 8 warning signs investors should review. Among 334 Aerospace & Defense companies, Smith & Wesson Brands ranks worse than 56.59% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Smith & Wesson Brands's annualized net income for the quarter that ended in Apr. 2026 was $64.9 Mil. Smith & Wesson Brands's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $348.9 Mil. Therefore, Smith & Wesson Brands's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 18.60%.
The historical rank and industry rank for Smith & Wesson Brands's Return-on-Tangible-Equity or its related term are showing as below:
SWBI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -22.93 Med: 11.97 Max: 101.73
Current: 5.33
During the past 13 years, Smith & Wesson Brands's highest Return-on-Tangible-Equity was 101.73%. The lowest was -22.93%. And the median was 11.97%.
SWBI's Return-on-Tangible-Equity is ranked worse than 56.59% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs SWBI: 5.33
Smith & Wesson Brands (NAS:SWBI) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Smith & Wesson Brands Return-on-Tangible-Equity Related Terms
Smith & Wesson Brands Return-on-Tangible-Equity Historical Data
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The historical data trend for Smith & Wesson Brands's Return-on-Tangible-Equity 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.
Smith & Wesson Brands Return-on-Tangible-Equity Chart
SWBI vs SPCE, PKE, RGR: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Smith & Wesson Brands's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Smith & Wesson Brands's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Smith & Wesson Brands's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 18.60% mean?
Smith & Wesson Brands (SWBI) has a Return-on-Tangible-Equity of 18.60% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Smith & Wesson Brands and its competitors. This is 55% above median its historical median of 11.97. According to the industry distribution chart, Smith & Wesson Brands ranks #189 out of 334 companies in the Aerospace & Defense industry, placing it in the top 56.6%.
Is Smith & Wesson Brands' Return-on-Tangible-Equity too high?
Smith & Wesson Brands' current Return-on-Tangible-Equity of 18.60% is 55% above median its 10-year median of 11.97. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.20. Smith & Wesson Brands' value of 18.60% is 127% above this industry median. Based on the distribution chart, Smith & Wesson Brands ranks #189 out of 334 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Smith & Wesson Brands has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Smith & Wesson Brands' Return-on-Tangible-Equity compare to SPCE and PKE?
According to the Aerospace & Defense industry distribution chart, Smith & Wesson Brands ranks #189 out of 334 companies for Return-on-Tangible-Equity. This places Smith & Wesson Brands in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.20. Smith & Wesson Brands' value of 18.60% is 127% above this benchmark. While the company's 10-year median is 11.97 vs. the industry median of 8.20, 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 Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Smith & Wesson Brands's current Return-on-Tangible-Equity of 18.60% is 127% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Smith & Wesson Brands and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith & Wesson Brands's current Return-on-Tangible-Equity is 18.60%, which is 55% above median its own 10-year median of 11.97. 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 Fairly Valued. The stock's GF Value™ is $13.82, compared to a current price of $15.23 — trading 10.2% above its estimated fair value. The current Return-on-Tangible-Equity is 18.60%, which is 55% above median its 10-year median of 11.97 and 127% above the Aerospace & Defense industry median of 8.20. Smith & Wesson Brands' overall GF Score™ is 63/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Smith & Wesson Brands (SWBI), the current Return-on-Tangible-Equity is 18.60% 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 $15.23 is trading 10.2% above its estimated GF Value™ of $13.82.
GuruFocus considers Smith & Wesson Brands to be Fairly Valued.
Key valuation signals for SWBI:
Return-on-Tangible-Equity: 18.60% (55% above median its 10-year median of 11.97)
GF Value™: $13.82 vs. price of $15.23 (10.2% above fair value)
Industry Position: 127% above the Aerospace & Defense median (#189 of 334)
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.
63GF Score
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