STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
NYSE:SWK - New York Stock Exchange, Inc. - US8545021011 - Common Stock - Currency: USD
Taking everything into account, SWK scores 4 out of 10 in our fundamental rating. SWK was compared to 128 industry peers in the Machinery industry. SWK may be in some trouble as it scores bad on both profitability and health. SWK may be a bit undervalued, certainly considering the very reasonable score on growth Finally 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.
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
Looking at the Return On Assets, with a value of 1.35%, SWK is doing worse than 62.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.38%, SWK is doing worse than 60.94% of the companies in the same industry.
SWK has a worse Return On Invested Capital (4.30%) than 63.28% 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 10.67%.
The last Return On Invested Capital (4.30%) for SWK is above the 3 year average (3.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 3.38% | ||
| ROIC | 4.3% |
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's Profit Margin of 1.92% is on the low side compared to the rest of the industry. SWK is outperformed by 62.50% of its industry peers.
SWK's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.00%, SWK is not doing good in the industry: 60.16% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of SWK has declined.
With a Gross Margin value of 29.96%, SWK perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
SWK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6% | ||
| PM (TTM) | 1.92% | ||
| GM | 29.96% |
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.
Compared to 1 year ago, SWK has more shares outstanding
Compared to 5 years ago, SWK has about the same amount of shares outstanding.
Compared to 1 year ago, SWK has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of SWK is 8.10, which is on the high side as it means it would take SWK, 8.10 years of fcf income to pay off all of its debts.
SWK has a Debt to FCF ratio of 8.10. This is comparable to the rest of the industry: SWK outperforms 42.97% of its industry peers.
SWK has a Debt/Equity ratio of 0.64. This is a neutral value indicating SWK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, SWK is not doing good in the industry: 64.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 8.1 | ||
| Altman-Z | N/A |
ROIC/WACC0.45
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.30 indicates that SWK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.30, SWK is not doing good in the industry: 85.16% of the companies in the same industry are doing better.
A Quick Ratio of 0.37 indicates that SWK may have some problems paying its short term obligations.
With a Quick ratio value of 0.37, SWK is not doing good in the industry: 93.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 200.69% 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 -12.27% on average per year.
The Revenue has decreased by -2.63% in the past year.
SWK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.25% yearly.
EPS 1Y (TTM)200.69%
EPS 3Y-27.43%
EPS 5Y-12.27%
EPS Q2Q%61.96%
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-0.43%
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 19.19% on average per year.
SWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.90% yearly.
EPS Next Y16.4%
EPS Next 2Y20.42%
EPS Next 3Y19.19%
EPS Next 5YN/A
Revenue Next Year0.67%
Revenue Next 2Y2.38%
Revenue Next 3Y2.9%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 13.12, the valuation of SWK can be described as correct.
79.69% of the companies in the same industry are more expensive than SWK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. SWK is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.27, the valuation of SWK can be described as reasonable.
Based on the Price/Forward Earnings ratio, SWK is valued cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, SWK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWK indicates a somewhat cheap valuation: SWK is cheaper than 70.31% of the companies listed in the same industry.
SWK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SWK is cheaper than 82.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.74 | ||
| EV/EBITDA | 9.7 |
4.3 Compensation for Growth
SWK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SWK's earnings are expected to grow with 19.19% in the coming years.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y20.42%
EPS Next 3Y19.19%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 5.73%, which is a nice return.
In the last 3 months the price of SWK has falen by -32.11%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.12, SWK pays a better dividend. On top of this SWK pays more dividend than 98.44% of the companies listed in the same industry.
SWK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
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 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 166.90% 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.
DP166.9%
EPS Next 2Y20.42%
EPS Next 3Y19.19%
57.21
+0.4 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.42%
Inst Owner Change0.34%
Ins Owners0.24%
Ins Owner Change2.62%
Market Cap8.84B
Analysts68
Price Target102.9 (79.86%)
Short Float %4.8%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
Yearly Dividend3.2
Dividend Growth(5Y)3.92%
DP166.9%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.66%
Min EPS beat(2)15.49%
Max EPS beat(2)15.84%
EPS beat(4)4
Avg EPS beat(4)15.54%
Min EPS beat(4)2.09%
Max EPS beat(4)28.75%
EPS beat(8)8
Avg EPS beat(8)27.33%
EPS beat(12)11
Avg EPS beat(12)24.94%
EPS beat(16)15
Avg EPS beat(16)22.1%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)2.95%
Revenue beat(4)2
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)2.95%
Revenue beat(8)2
Avg Revenue beat(8)-0.99%
Revenue beat(12)4
Avg Revenue beat(12)-1.44%
Revenue beat(16)5
Avg Revenue beat(16)-3%
PT rev (1m)-1.4%
PT rev (3m)-2.89%
EPS NQ rev (1m)-1.38%
EPS NQ rev (3m)-30.18%
EPS NY rev (1m)-3.95%
EPS NY rev (3m)-8.2%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-1.56%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.27 | ||
| P/S | 0.58 | ||
| P/FCF | 11.74 | ||
| P/OCF | 7.99 | ||
| P/B | 1.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.7 |
EPS(TTM)4.36
EY7.62%
EPS(NY)5.08
Fwd EY8.87%
FCF(TTM)4.87
FCFY8.52%
OCF(TTM)7.16
OCFY12.52%
SpS99.43
BVpS56.42
TBVpS-18.87
PEG (NY)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 3.38% | ||
| ROCE | 5.44% | ||
| ROIC | 4.3% | ||
| ROICexc | 4.37% | ||
| ROICexgc | 14.54% | ||
| OM | 6% | ||
| PM (TTM) | 1.92% | ||
| GM | 29.96% | ||
| FCFM | 4.9% |
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%
ROICexcg growth 3Y-9.54%
ROICexcg 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-Score8
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 8.1 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 60.03% | ||
| Cap/Sales | 2.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.27% | ||
| Profit Quality | 255.86% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | N/A |
F-Score8
WACC9.49%
ROIC/WACC0.45
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)200.69%
EPS 3Y-27.43%
EPS 5Y-12.27%
EPS Q2Q%61.96%
EPS Next Y16.4%
EPS Next 2Y20.42%
EPS Next 3Y19.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-0.43%
Revenue Next Year0.67%
Revenue Next 2Y2.38%
Revenue Next 3Y2.9%
Revenue Next 5YN/A
EBIT growth 1Y62.32%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year31.22%
EBIT Next 3Y18.11%
EBIT Next 5YN/A
FCF growth 1Y-11.68%
FCF growth 3Y73.57%
FCF growth 5Y-6.98%
OCF growth 1Y-7.08%
OCF growth 3Y18.63%
OCF growth 5Y-5.97%