STANLEY BLACK & DECKER INC (SWK)
US8545021011 - Common Stock
Overall SWK gets a fundamental rating of 3 out of 10. We evaluated SWK against 131 industry peers in the Machinery industry. SWK has a bad profitability rating. Also its financial health evaluation is rather negative. SWK has a correct valuation and a medium growth rate. SWK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SWK was profitable.
SWK had a positive operating cash flow in the past year.
Of the past 5 years SWK 4 years were profitable.
SWK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SWK has a Return On Assets of -0.91%. This is in the lower half of the industry: SWK underperforms 69.29% of its industry peers.
With a Return On Equity value of -2.31%, SWK is not doing good in the industry: 67.72% of the companies in the same industry are doing better.
SWK's Return On Invested Capital of 3.80% is on the low side compared to the rest of the industry. SWK is outperformed by 66.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SWK is significantly below the industry average of 10.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.91% | ||
| ROE | -2.31% | ||
| ROIC | 3.8% |
ROA(3y)2.96%
ROA(5y)3.73%
ROE(3y)7.31%
ROE(5y)8.67%
ROIC(3y)4.2%
ROIC(5y)5.76%
1.3 Margins
SWK has a Operating Margin (5.50%) which is in line with its industry peers.
SWK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 29.63%, SWK is in line with its industry, outperforming 48.03% of the companies in the same industry.
SWK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.5% | ||
| PM (TTM) | N/A | ||
| GM | 29.63% |
OM growth 3Y-41.13%
OM growth 5Y-26.46%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.17%
GM growth 5Y-5.88%
2. Health
2.1 Basic Checks
SWK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SWK has more shares outstanding
Compared to 5 years ago, SWK has more shares outstanding
SWK has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.99 indicates that SWK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.99, SWK is doing worse than 66.93% of the companies in the same industry.
SWK has a debt to FCF ratio of 7.77. This is a slightly negative value and a sign of low solvency as SWK would need 7.77 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.77, SWK is in line with its industry, outperforming 47.24% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that SWK is somewhat dependend on debt financing.
SWK has a Debt to Equity ratio of 0.68. This is in the lower half of the industry: SWK underperforms 70.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 7.77 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.45
WACC8.48%
2.3 Liquidity
SWK has a Current Ratio of 1.29. This is a normal value and indicates that SWK is financially healthy and should not expect problems in meeting its short term obligations.
SWK has a worse Current ratio (1.29) than 85.04% of its industry peers.
SWK has a Quick Ratio of 1.29. This is a bad value and indicates that SWK is not financially healthy enough and could expect problems in meeting its short term obligations.
SWK's Quick ratio of 0.42 is on the low side compared to the rest of the industry. SWK is outperformed by 92.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 781.40% over the past year.
Measured over the past years, SWK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -29.20% on average per year.
SWK shows a decrease in Revenue. In the last year, the revenue decreased by -4.05%.
SWK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.45% yearly.
EPS 1Y (TTM)781.4%
EPS 3Y-45.55%
EPS 5Y-29.2%
EPS Q2Q%16.19%
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y2.78%
Revenue growth 5Y2.45%
Sales Q2Q%-5.12%
3.2 Future
The Earnings Per Share is expected to grow by 66.54% on average over the next years. This is a very strong growth
Based on estimates for the next years, SWK will show a small growth in Revenue. The Revenue will grow by 0.46% on average per year.
EPS Next Y188.97%
EPS Next 2Y95.54%
EPS Next 3Y66.54%
EPS Next 5YN/A
Revenue Next Year-3.91%
Revenue Next 2Y-1.2%
Revenue Next 3Y0.46%
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.55, the valuation of SWK can be described as rather expensive.
SWK's Price/Earnings is on the same level as the industry average.
SWK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.53.
The Price/Forward Earnings ratio is 15.41, which indicates a correct valuation of SWK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWK indicates a somewhat cheap valuation: SWK is cheaper than 75.59% of the companies listed in the same industry.
SWK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 15.41 |
4.2 Price Multiples
SWK's Enterprise Value to EBITDA is on the same level as the industry average.
83.46% of the companies in the same industry are more expensive than SWK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.77 | ||
| EV/EBITDA | 13.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SWK's earnings are expected to grow with 66.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y95.54%
EPS Next 3Y66.54%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 3.82%. Purely for dividend investing, there may be better candidates out there.
SWK's Dividend Yield is rather good when compared to the industry average which is at 1.55. SWK pays more dividend than 96.85% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.22, SWK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
5.2 History
The dividend of SWK has a limited annual growth rate of 5.92%.
SWK has been paying a dividend for at least 10 years, so it has a reliable track record.
SWK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.92%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
SWK has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of SWK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-238.54%
EPS Next 2Y95.54%
EPS Next 3Y66.54%
STANLEY BLACK & DECKER INC
NYSE:SWK (11/15/2024, 8:04:00 PM)
After market: 85.28 -0.17 (-0.2%)85.45
-0.37 (-0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 15.41 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.91% | ||
| ROE | -2.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.5% | ||
| PM (TTM) | N/A | ||
| GM | 29.63% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)781.4%
EPS 3Y-45.55%
EPS 5Y
EPS Q2Q%
EPS Next Y188.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y2.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y