Is SMITH & WESSON BRANDS, INC. (SWBI) Halal?
Shariah Screening — 5 Standards
Based on financial data from April 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 18.4% / 30% | 4.1% / 30% | 9.0% / 30% | 0.53% / 5% | ✓ HALAL |
| DJIM | 18.4% / 33% | 4.1% / 33% | 9.0% / 33% | 0.53% / 5% | ✓ HALAL |
| MSCI | 20.5% / 33% | 4.5% / 33% | 10.0% / 33% | 0.53% / 5% | ✓ HALAL |
| S&P | 18.4% / 33% | 4.1% / 33% | 9.0% / 33% | 0.53% / 5% | ✓ HALAL |
| FTSE | 20.5% / 33% | 4.5% / 33% | 10.0% / 50% | 0.53% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 26.7% | |
| Operating Margin | 4.8% | |
| Net Margin | 2.2% | |
| Return on Equity (ROE) | 3.0% | |
| Return on Assets (ROA) | 2.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$7M |
| Free Cash Flow | -$29M |
| Total Debt | $115M |
| Debt-to-Equity | 29.9 |
| Current Ratio | 4.5 |
| Total Assets | $560M |
Price & Trading
| Last Close | $14.85 |
| 50-Day MA | $12.37 |
| 200-Day MA | $10.01 |
| Avg Volume | 563K |
| Beta | 1.1 |
|
52-Week Range
$7.73
| |
About SMITH & WESSON BRANDS, INC. (SWBI)
Smith & Wesson Brands, Inc. designs, manufactures, and sells firearms worldwide. The company offers handguns, including revolvers and pistols; long guns, such as modern sporting rifles, pistol caliber carbines, and lever-action rifles; handcuffs; suppressors; and other firearm-related products. It also provides manufacturing services comprising forging, heat treating, rapid prototyping, tooling, finishing, plating, machining, and custom plastic injection molding, assembly, and distribution services to other businesses; and sells parts purchased through third parties. The company sells its products to firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement, security agencies and officers, and military agencies. It markets its products through independent dealers, retailers, in-store retails, and direct to consumers, and rangeoperations; print, broadcast, and digital advertising campaigns; social and electronic media; and in-store retail merchandising strategies. Smith & Wesson Brands, Inc. was founded in 1852 and is based in Maryville, Tennessee.
Purification Calculator
As a halal stock with 0.53% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is SMITH & WESSON BRANDS, INC. (SWBI) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), SMITH & WESSON BRANDS, INC. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is SMITH & WESSON BRANDS, INC.'s debt ratio?
SMITH & WESSON BRANDS, INC.'s debt ratio is 18.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 20.5%.
Does SMITH & WESSON BRANDS, INC. require dividend purification?
Yes, SMITH & WESSON BRANDS, INC. has an impermissible income ratio of 0.53%, which means 0.53% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are SMITH & WESSON BRANDS, INC.'s key financial metrics?
SMITH & WESSON BRANDS, INC. has a market capitalization of $652M, trailing P/E ratio of 61.1, and revenue of $475M. The company maintains a gross margin of 26.7% and a net margin of 2.2%. Return on equity stands at 3.0%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.