Smith & Wesson BrandsSTU:SWS -1.69%62 ROE % is 17.58% as of Apr. 2026, which is 137% above its 10-year median of 7.42. 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 52.16% on this metric.
The historical rank and industry rank for Smith & Wesson Brands's ROE % or its related term are showing as below:
STU:SWS'
s ROE % Range Over the Past 10 Years
Min: -14.73 Med: 7.42 Max: 77.14
Current: 5.02
During the past 13 years, Smith & Wesson Brands's highest ROE % was 77.14%. The lowest was -14.73%. And the median was 7.42%.
STU:SWS's ROE % is ranked worse than 52.16% of 347
companies
in the Aerospace & Defense industry
Industry Median: 5.91
vs STU:SWS: 5.02
Smith & Wesson Brands (STU:SWS) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Smith & Wesson Brands's ROE % distribution charts can be found below:
* The bar in red indicates where Smith & Wesson Brands's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Smith & Wesson Brands (STU:SWS) has a ROE % of 17.58% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Smith & Wesson Brands and its competitors. This is 137% above median its historical median of 7.42. According to the industry distribution chart, Smith & Wesson Brands ranks #181 out of 347 companies in the Aerospace & Defense industry, placing it in the top 52.2%.
Is Smith & Wesson Brands' ROE % too high?
Smith & Wesson Brands' current ROE % of 17.58% is 137% above median its 10-year median of 7.42. The Aerospace & Defense industry median ROE % is 5.91. Smith & Wesson Brands' value of 17.58% is 197.5% above this industry median. Based on the distribution chart, Smith & Wesson Brands ranks #181 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' ROE % compare to SPCE and PKE?
According to the Aerospace & Defense industry distribution chart, Smith & Wesson Brands ranks #181 out of 347 companies for ROE %. This places Smith & Wesson Brands in the lower half of its industry. The industry median ROE % is 5.91. Smith & Wesson Brands' value of 17.58% is 197.5% above this benchmark. While the company's 10-year median is 7.42 vs. the industry median of 5.91, 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 ROE % for an Aerospace & Defense company?
The median ROE % among Aerospace & Defense companies is 5.91, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Smith & Wesson Brands's current ROE % of 17.58% is 197.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Smith & Wesson Brands and its competitors. For the Aerospace & Defense industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith & Wesson Brands's current ROE % is 17.58%, which is 137% above median its own 10-year median of 7.42. 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 ROE % is 17.58%, which is 137% above median its 10-year median of 7.42 and 197.5% above the Aerospace & Defense industry median of 5.91. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Smith & Wesson Brands (STU:SWS), the current ROE % is 17.58% 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:
ROE %: 17.58% (137% above median its 10-year median of 7.42)
GF Value™: €12.03 vs. price of €14.26 (18.5% above fair value)
Industry Position: 197.5% above the Aerospace & Defense median (#181 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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