SWK Holdings Corporation (SWKH)
Valuation Overview•Is SWK Holdings Corporation Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 69/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
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Verdict: Solid fundamental quality, though growth presents a headwind.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
SWKH demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($11M) and minimal debt risk.
The company is facing top-line contraction (-4.4% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 58.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $6.7M | -9.4% | -4.4% | -0.2% | +5.7% | |
| EBITDA | $4.5M | — | +23.7% | — | — | |
| Net Income | -$19.4M | -118.8% | — | — | +10.1% | |
| EPS (Diluted) | $-1.60 | -119.4% | — | — | +9.5% | |
| Free Cash Flow | $10.3M | +16.9% | +50.2% | +11.8% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 95.3% | 93.8% | 90.3% | 92.9% |
| Operating Margin | 58.9% | 41.2% | 40.6% | 49.7% |
| Net Margin | -6.2% | 21.9% | 28.9% | 41.5% |
| FCF Margin | 65.7% | 51.6% | 46.6% | 47.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | $0.53 | $-1.59 | -402.9% | ||
| Q4'25 | $0.52 | $0.59 | +13.5% | ||
| Q3'25 | $0.34 | $0.38 | +11.8% | ||
| Q2'25 | $0.29 | $0.66 | +127.6% | ||
| Q1'25 | $0.94 | $0.54 | -42.6% | ||
| Q4'24 | $0.52 | $0.33 | -36.5% | ||
| Q3'24 | $0.36 | $0.35 | -2.8% | ||
| Q2'24 | $0.47 | $0.12 | -74.6% |
Total return is -1.6% (1Y), lagging the benchmark by -14.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -7.2% | -18.5% | — |
| 1Y | -1.6% | -14.7% | — |
| 3YCAGR | +16.5% | -5.3% | +31.8% |
| 5YCAGR | +5.5% | -5.5% | +26.2% |
| 10YCAGR | +10.4% | -3.0% | — |
The S&P 500 is at 30.9x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about SWK Holdings Corporation (SWKH) valuation, health, and returns.
Based on peer relative multiples, SWK Holdings Corporation appears Expensive versus peers compared to industry peers.
SWK Holdings Corporation has multiple valuation anchors: Peer Relative Fair Value: $10.47. A convergence of these signals offers higher conviction.
SWK Holdings Corporation displays good financial health with a composite quality score of 69/100, supported by a Altman Z-Score of -17.9 (distress zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 6.1%.
SWK Holdings Corporation returns capital via buybacks instead of dividends, carrying a 1.6% buyback yield and reducing outstanding shares by -2.3% in the last 12 months.
SWK Holdings Corporation's current growth trajectory is Decelerating. The company achieved -9.4% 1Y revenue growth and -119.4% 1Y EPS growth, compared to its 3Y revenue CAGR of -4.4%.
Wall Street consensus is Buy based on 1 analysts, beating EPS expectations in 42% of recent quarters with a -1-quarter streak. The consensus price target represents a N/A change from current levels.
Investment risks for SWK Holdings Corporation include: -10.4% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.17x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.