STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWK - US8545021011 - Common Stock
76.47 USD
+2.19 (+2.95%)
76.47 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SWK. SWK was compared to 132 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. Finally SWK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SWK had positive earnings in the past year.
In the past year SWK had a positive cash flow from operations.
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 (2.02%) which is in line with its industry peers.
SWK has a Return On Equity (4.89%) which is in line with its industry peers.
SWK has a Return On Invested Capital of 4.78%. This is in the lower half of the industry: SWK underperforms 60.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWK is significantly below the industry average of 10.27%.
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
SWK has a Profit Margin of 2.89%. This is comparable to the rest of the industry: SWK outperforms 43.94% of its industry peers.
In the last couple of years the Profit Margin of SWK has declined.
The Operating Margin of SWK (6.88%) is comparable to the rest of the industry.
SWK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 30.14%, SWK is in line with its industry, outperforming 49.24% of the companies in the same industry.
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
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
SWK has about the same amout of shares outstanding than it did 5 years ago.
SWK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.96 indicates that SWK is not a great score, but indicates only limited risk for bankruptcy at the moment.
SWK has a worse Altman-Z score (1.96) than 65.15% of its industry peers.
The Debt to FCF ratio of SWK is 17.89, which is on the high side as it means it would take SWK, 17.89 years of fcf income to pay off all of its debts.
SWK has a worse Debt to FCF ratio (17.89) than 64.39% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that SWK is somewhat dependend on debt financing.
SWK has a worse Debt to Equity ratio (0.67) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.53
WACC9.02%
2.3 Liquidity
A Current Ratio of 1.11 indicates that SWK should not have too much problems paying its short term obligations.
SWK has a worse Current ratio (1.11) than 84.09% of its industry peers.
A Quick Ratio of 0.35 indicates that SWK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.35, SWK is doing worse than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
SWK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.33%, which is quite impressive.
Measured over the past years, SWK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.27% on average per year.
SWK shows a decrease in Revenue. In the last year, the revenue decreased by -1.40%.
SWK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.25% yearly.
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
The Earnings Per Share is expected to grow by 18.07% on average over the next years. This is quite good.
SWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.37% yearly.
EPS Next Y5.29%
EPS Next 2Y15.14%
EPS Next 3Y15.62%
EPS Next 5Y18.07%
Revenue Next Year-0.18%
Revenue Next 2Y1.38%
Revenue Next 3Y2.15%
Revenue Next 5Y4.37%
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 16.10, which indicates a correct valuation of SWK.
Compared to the rest of the industry, the Price/Earnings ratio of SWK indicates a rather cheap valuation: SWK is cheaper than 83.33% of the companies listed in the same industry.
SWK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
A Price/Forward Earnings ratio of 13.23 indicates a correct valuation of SWK.
SWK's Price/Forward Earnings ratio is rather cheap when compared to the industry. SWK is cheaper than 90.15% of the companies in the same industry.
SWK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 13.23 |
4.2 Price Multiples
SWK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SWK is cheaper than 74.24% of the companies in the same industry.
SWK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.04 | ||
| EV/EBITDA | 10.49 |
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.
A more expensive valuation may be justified as SWK's earnings are expected to grow with 15.62% in the coming years.
PEG (NY)3.04
PEG (5Y)N/A
EPS Next 2Y15.14%
EPS Next 3Y15.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.43%, SWK is a good candidate for dividend investing.
SWK's Dividend Yield is rather good when compared to the industry average which is at 0.98. SWK pays more dividend than 96.21% of the companies in the same industry.
SWK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
5.2 History
The dividend of SWK has a limited annual growth rate of 3.92%.
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)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 2Y15.14%
EPS Next 3Y15.62%
76.47
+2.19 (+2.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.13%
Inst Owner Change-1.12%
Ins Owners0.35%
Ins Owner Change0.56%
Market Cap11.84B
Revenue(TTM)15.17B
Net Income(TTM)438.60M
Analysts69.57
Price Target83.5 (9.19%)
Short Float %3.62%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Yearly Dividend3.2
Dividend Growth(5Y)3.92%
DP113.61%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)0.85%
PT rev (3m)-7.3%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-20.12%
EPS NY rev (1m)-1.41%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.1 | ||
| Fwd PE | 13.23 | ||
| P/S | 0.78 | ||
| P/FCF | 32.04 | ||
| P/OCF | 17.05 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.49 |
EPS(TTM)4.75
EY6.21%
EPS(NY)5.78
Fwd EY7.56%
FCF(TTM)2.39
FCFY3.12%
OCF(TTM)4.48
OCFY5.86%
SpS97.92
BVpS57.96
TBVpS-16.66
PEG (NY)3.04
PEG (5Y)N/A
Graham Number78.71
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 | 1.96 |
F-Score7
WACC9.02%
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 Y5.29%
EPS Next 2Y15.14%
EPS Next 3Y15.62%
EPS Next 5Y18.07%
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%0.13%
Revenue Next Year-0.18%
Revenue Next 2Y1.38%
Revenue Next 3Y2.15%
Revenue Next 5Y4.37%
EBIT growth 1Y23.56%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year22.27%
EBIT Next 3Y15.23%
EBIT Next 5Y9.09%
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 for 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 16.1 and the Price/Book (PB) ratio is 1.32.
What is the earnings growth outlook for STANLEY BLACK & DECKER INC?
The Earnings per Share (EPS) of STANLEY BLACK & DECKER INC (SWK) is expected to grow by 5.29% in the next year.