Is SWBI a high-quality business?

AlphaMadera's AlphaQuality grade scores Smith & Wesson Brands, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how SWBI compares to a Buffett-style quality bar.

What is Smith & Wesson Brands, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to SWBI based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes SWBI a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

SWBI - Smith & Wesson Brands, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $15.25 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C 55.8 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

B- 64.3

5yr Avg ROIC 19.9% 92/100
Operating Margin Trend -7.11 pp/yr 0/100

Capital Efficiency

Weight: 15%

A+ 100.0

5yr Avg ROE 28.8% 100/100
5yr Share-Count CAGR -5.4% 100/100

Growth Quality

Weight: 10%

F 8.0

5yr Revenue CAGR -18.2% 0/100
5yr EPS CAGR -49.3% 0/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

F 26.0

5yr FCF Margin 4.5% 47/100
5yr FCF/NI Conversion -0.40x 0/100

Balance Sheet

Weight: 25%

B+ 78.6

Net Debt / EBITDA 1.61x 76/100
Interest Coverage (EBIT/Int) 5.16x 66/100
Altman Z-Score 4.81 99/100

Stability

Weight: 20%

D 34.0

EPS Volatility (σ/μ) 0.96 1/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 3/5 40/100

3 of 3 gurus held; 2 new buys; 1 added.

Holders: 3 +3
Avg Δ position: —
New buys: 2
Full exits: 0

Laffont new
Wood new
Cooperman increased

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.