STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWK - US8545021011 - Common Stock
72.75 USD
-0.19 (-0.26%)
72.75 USD
0 (0%)
SWK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. SWK may be in some trouble as it scores bad on both profitability and health. SWK is not valued too expensively and it also shows a decent 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.
SWK had positive earnings in 4 of the past 5 years.
Of the past 5 years SWK 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SWK (2.02%) is comparable to the rest of the industry.
SWK has a Return On Equity (4.89%) which is in line with its industry peers.
SWK has a worse Return On Invested Capital (4.78%) than 60.61% 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 10.27%.
The 3 year average ROIC (3.22%) for SWK is below the current ROIC(4.78%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 2.89%, SWK perfoms like the industry average, outperforming 43.94% of the companies in the same industry.
SWK's Profit Margin has declined in the last couple of years.
SWK has a Operating Margin (6.88%) which is in line with its industry peers.
SWK's Operating Margin has declined in the last couple of years.
The Gross Margin of SWK (30.14%) is comparable to the rest of the industry.
SWK's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, SWK has more shares outstanding
The number of shares outstanding for SWK remains at a similar level compared to 5 years ago.
Compared to 1 year ago, SWK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.95 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 (1.95) 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 Debt to FCF ratio of 17.89. This is in the lower half of the industry: SWK underperforms 64.39% of its industry peers.
SWK has a Debt/Equity ratio of 0.67. This is a neutral value indicating SWK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, SWK is doing worse than 65.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.52
WACC9.12%
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 84.09% of its industry peers.
A Quick Ratio of 0.35 indicates that SWK may have some problems paying its short term obligations.
With a Quick ratio value of 0.35, SWK is not doing good in the industry: 92.42% of the companies in the same industry are doing better.
| 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.
SWK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.27% yearly.
Looking at the last year, SWK shows a decrease in Revenue. The Revenue has decreased by -1.40% in the last 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)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
SWK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.07% yearly.
Based on estimates for the next years, SWK will show a small growth in Revenue. The Revenue will grow by 4.37% on average per year.
EPS Next Y5.29%
EPS Next 2Y15.04%
EPS Next 3Y15.56%
EPS Next 5Y18.07%
Revenue Next Year-0.18%
Revenue Next 2Y1.41%
Revenue Next 3Y2.17%
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
SWK is valuated correctly with a Price/Earnings ratio of 15.32.
SWK's Price/Earnings ratio is rather cheap when compared to the industry. SWK is cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, SWK is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.61, the valuation of SWK can be described as correct.
Based on the Price/Forward Earnings ratio, SWK is valued cheaply inside the industry as 89.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, SWK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.32 | ||
| Fwd PE | 12.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWK is valued a bit cheaper than the industry average as 76.52% of the companies are valued more expensively.
SWK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.49 | ||
| EV/EBITDA | 10.34 |
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 15.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.89
PEG (5Y)N/A
EPS Next 2Y15.04%
EPS Next 3Y15.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.55%, SWK is a good candidate for dividend investing.
SWK's Dividend Yield is rather good when compared to the industry average which is at 1.04. SWK pays more dividend than 97.73% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, SWK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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 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 2Y15.04%
EPS Next 3Y15.56%
72.75
-0.19 (-0.26%)
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 Cap11.27B
Revenue(TTM)15.17B
Net Income(TTM)438.60M
Analysts69.57
Price Target82.79 (13.8%)
Short Float %4.33%
Short Ratio3.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
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)-6.32%
PT rev (3m)-8.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.47%
EPS NY rev (1m)-1.41%
EPS NY rev (3m)-1.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.32 | ||
| Fwd PE | 12.61 | ||
| P/S | 0.74 | ||
| P/FCF | 30.49 | ||
| P/OCF | 16.22 | ||
| P/B | 1.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.34 |
EPS(TTM)4.75
EY6.53%
EPS(NY)5.77
Fwd EY7.93%
FCF(TTM)2.39
FCFY3.28%
OCF(TTM)4.48
OCFY6.16%
SpS97.92
BVpS57.96
TBVpS-16.66
PEG (NY)2.89
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 | 1.95 |
F-Score7
WACC9.12%
ROIC/WACC0.52
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 2Y15.04%
EPS Next 3Y15.56%
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 2Y1.41%
Revenue Next 3Y2.17%
Revenue Next 5Y4.37%
EBIT growth 1Y23.56%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year22.27%
EBIT Next 3Y15.26%
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 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 15.32 and the Price/Book (PB) ratio is 1.26.
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.