STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - NYSE:SWK - US8545021011 - Common Stock
62.62 USD
-0.21 (-0.33%)
Taking everything into account, SWK scores 4 out of 10 in our fundamental rating. SWK was compared to 130 industry peers in the Machinery industry. SWK may be in some trouble as it scores bad on both profitability and health. SWK has a correct valuation and a medium growth rate. Finally SWK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SWK was profitable.
In the past year SWK had a positive cash flow from operations.
SWK had positive earnings in 4 of the past 5 years.
SWK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SWK has a Return On Assets of 2.02%. This is comparable to the rest of the industry: SWK outperforms 40.77% of its industry peers.
SWK has a worse Return On Equity (4.89%) than 60.77% of its industry peers.
SWK's Return On Invested Capital of 4.78% is on the low side compared to the rest of the industry. SWK is outperformed by 60.77% of its industry peers.
SWK had an Average Return On Invested Capital over the past 3 years of 3.22%. This is significantly below the industry average of 10.24%.
The last Return On Invested Capital (4.78%) for SWK is above the 3 year average (3.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 4.89% | ||
| ROIC | 4.78% |
ROA(3y)1.42%
ROA(5y)3.07%
ROE(3y)3.61%
ROE(5y)7.25%
ROIC(3y)3.22%
ROIC(5y)4.92%
1.3 Margins
The Profit Margin of SWK (2.89%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SWK has declined.
SWK has a Operating Margin (6.88%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SWK has declined.
SWK's Gross Margin of 30.14% is in line compared to the rest of the industry. SWK outperforms 48.46% of its industry peers.
In the last couple of years the Gross Margin of SWK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.88% | ||
| PM (TTM) | 2.89% | ||
| GM | 30.14% |
OM growth 3Y-22.86%
OM growth 5Y-13.27%
PM growth 3Y-44.11%
PM growth 5Y-21.97%
GM growth 3Y-3.73%
GM growth 5Y-2.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWK is destroying value.
SWK has more shares outstanding than it did 1 year ago.
SWK has about the same amout of shares outstanding than it did 5 years ago.
Compared to 1 year ago, SWK has an improved debt to assets ratio.
2.2 Solvency
SWK has an Altman-Z score of 1.88. This is not the best score and indicates that SWK is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.88, SWK is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
SWK has a debt to FCF ratio of 17.89. This is a negative value and a sign of low solvency as SWK would need 17.89 years to pay back of all of its debts.
The Debt to FCF ratio of SWK (17.89) is worse than 66.15% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that SWK is somewhat dependend on debt financing.
SWK's Debt to Equity ratio of 0.67 is on the low side compared to the rest of the industry. SWK is outperformed by 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.53
WACC8.99%
2.3 Liquidity
A Current Ratio of 1.11 indicates that SWK should not have too much problems paying its short term obligations.
SWK's Current ratio of 1.11 is on the low side compared to the rest of the industry. SWK is outperformed by 84.62% of its industry peers.
A Quick Ratio of 0.35 indicates that SWK may have some problems paying its short term obligations.
The Quick ratio of SWK (0.35) is worse than 93.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.33% over the past year.
The earnings per share for SWK have been decreasing by -12.27% on average. This is quite bad
The Revenue has decreased by -1.40% in the past year.
Measured over the past years, SWK shows a small growth in Revenue. The Revenue has been growing by 1.25% on average per year.
EPS 1Y (TTM)25.33%
EPS 3Y-27.43%
EPS 5Y-12.27%
EPS Q2Q%17.21%
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%0.13%
3.2 Future
Based on estimates for the next years, SWK will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.76% on average per year.
The Revenue is expected to grow by 4.40% on average over the next years.
EPS Next Y6.79%
EPS Next 2Y15.5%
EPS Next 3Y15.21%
EPS Next 5Y17.76%
Revenue Next Year0.24%
Revenue Next 2Y1.93%
Revenue Next 3Y2.55%
Revenue Next 5Y4.4%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.18, which indicates a correct valuation of SWK.
Based on the Price/Earnings ratio, SWK is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
SWK is valuated rather cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.77, the valuation of SWK can be described as reasonable.
SWK's Price/Forward Earnings ratio is rather cheap when compared to the industry. SWK is cheaper than 89.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SWK to the average of the S&P500 Index (34.98), we can say SWK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 10.77 |
4.2 Price Multiples
SWK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SWK is cheaper than 77.69% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SWK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.23 | ||
| EV/EBITDA | 9.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SWK does not grow enough to justify the current Price/Earnings ratio.
SWK's earnings are expected to grow with 15.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.94
PEG (5Y)N/A
EPS Next 2Y15.5%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 4.93%, which is a nice return.
SWK's Dividend Yield is rather good when compared to the industry average which is at 1.87. SWK pays more dividend than 98.46% of the companies in the same industry.
SWK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
5.2 History
The dividend of SWK has a limited annual growth rate of 3.92%.
SWK has paid a dividend for at least 10 years, which is a reliable track record.
SWK has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.92%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
SWK pays out 113.61% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SWK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP113.61%
EPS Next 2Y15.5%
EPS Next 3Y15.21%
NYSE:SWK (11/19/2025, 9:30:56 AM)
62.62
-0.21 (-0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.48%
Inst Owner Change-1.34%
Ins Owners0.35%
Ins Owner Change0.67%
Market Cap9.69B
Revenue(TTM)15.17B
Net Income(TTM)438.60M
Analysts69.17
Price Target88.38 (41.14%)
Short Float %3.76%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
Yearly Dividend3.2
Dividend Growth(5Y)3.92%
DP113.61%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)90.78%
Min EPS beat(2)19.82%
Max EPS beat(2)161.74%
EPS beat(4)4
Avg EPS beat(4)52.46%
Min EPS beat(4)12.45%
Max EPS beat(4)161.74%
EPS beat(8)8
Avg EPS beat(8)34%
EPS beat(12)12
Avg EPS beat(12)40.09%
EPS beat(16)15
Avg EPS beat(16)31.92%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)-1.24%
Revenue beat(4)2
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-2.35%
Max Revenue beat(4)2.95%
Revenue beat(8)3
Avg Revenue beat(8)-0.78%
Revenue beat(12)4
Avg Revenue beat(12)-0.76%
Revenue beat(16)5
Avg Revenue beat(16)-2.04%
PT rev (1m)-0.88%
PT rev (3m)-1.54%
EPS NQ rev (1m)-17.42%
EPS NQ rev (3m)-17.69%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)3.68%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 10.77 | ||
| P/S | 0.64 | ||
| P/FCF | 26.23 | ||
| P/OCF | 13.95 | ||
| P/B | 1.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.36 |
EPS(TTM)4.75
EY7.59%
EPS(NY)5.82
Fwd EY9.29%
FCF(TTM)2.39
FCFY3.81%
OCF(TTM)4.49
OCFY7.17%
SpS97.98
BVpS58
TBVpS-16.67
PEG (NY)1.94
PEG (5Y)N/A
Graham Number78.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 4.89% | ||
| ROCE | 6.57% | ||
| ROIC | 4.78% | ||
| ROICexc | 4.86% | ||
| ROICexgc | 15.21% | ||
| OM | 6.88% | ||
| PM (TTM) | 2.89% | ||
| GM | 30.14% | ||
| FCFM | 2.44% |
ROA(3y)1.42%
ROA(5y)3.07%
ROE(3y)3.61%
ROE(5y)7.25%
ROIC(3y)3.22%
ROIC(5y)4.92%
ROICexc(3y)3.28%
ROICexc(5y)5.08%
ROICexgc(3y)10%
ROICexgc(5y)18.21%
ROCE(3y)4.3%
ROCE(5y)6.57%
ROICexgc growth 3Y-9.54%
ROICexgc growth 5Y-20.54%
ROICexc growth 3Y-15.81%
ROICexc growth 5Y-12.99%
OM growth 3Y-22.86%
OM growth 5Y-13.27%
PM growth 3Y-44.11%
PM growth 5Y-21.97%
GM growth 3Y-3.73%
GM growth 5Y-2.24%
F-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Debt/EBITDA | 3.85 | ||
| Cap/Depr | 61.52% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.18% | ||
| Profit Quality | 84.27% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.35 | ||
| Altman-Z | 1.88 |
F-Score7
WACC8.99%
ROIC/WACC0.53
Cap/Depr(3y)68.97%
Cap/Depr(5y)71.42%
Cap/Sales(3y)2.53%
Cap/Sales(5y)2.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.33%
EPS 3Y-27.43%
EPS 5Y-12.27%
EPS Q2Q%17.21%
EPS Next Y6.79%
EPS Next 2Y15.5%
EPS Next 3Y15.21%
EPS Next 5Y17.76%
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%0.13%
Revenue Next Year0.24%
Revenue Next 2Y1.93%
Revenue Next 3Y2.55%
Revenue Next 5Y4.4%
EBIT growth 1Y23.56%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year24.45%
EBIT Next 3Y15.48%
EBIT Next 5Y5.79%
FCF growth 1Y-49.1%
FCF growth 3Y73.57%
FCF growth 5Y-6.98%
OCF growth 1Y-35.27%
OCF growth 3Y18.63%
OCF growth 5Y-5.97%
STANLEY BLACK & DECKER INC / SWK FAQ
Can you provide the ChartMill fundamental rating for STANLEY BLACK & DECKER INC?
ChartMill assigns a fundamental rating of 4 / 10 to SWK.
What is the valuation status of STANLEY BLACK & DECKER INC (SWK) stock?
ChartMill assigns a valuation rating of 5 / 10 to STANLEY BLACK & DECKER INC (SWK). This can be considered as Fairly Valued.
What is the profitability of SWK stock?
STANLEY BLACK & DECKER INC (SWK) has a profitability rating of 3 / 10.
What is the valuation of STANLEY BLACK & DECKER INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for STANLEY BLACK & DECKER INC (SWK) is 13.18 and the Price/Book (PB) ratio is 1.08.
What is the financial health of STANLEY BLACK & DECKER INC (SWK) stock?
The financial health rating of STANLEY BLACK & DECKER INC (SWK) is 2 / 10.