STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:SWK • US8545021011
78.66 USD
-0.44 (-0.56%)
At close: Jan 30, 2026
78.9 USD
+0.24 (+0.31%)
After Hours: 1/30/2026, 8:20:19 PM
Overall SWK gets a fundamental rating of 4 out of 10. We evaluated SWK against 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. 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
- Looking at the Return On Assets, with a value of 2.02%, SWK is in line with its industry, outperforming 42.42% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 4.89%, SWK is in line with its industry, outperforming 42.42% of the companies in the same industry.
- SWK has a Return On Invested Capital of 4.78%. This is in the lower half of the industry: SWK underperforms 61.36% 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 10.18%.
- 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
- With a Profit Margin value of 2.89%, SWK perfoms like the industry average, outperforming 43.18% of the companies in the same industry.
- SWK's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 6.88%, SWK is in line with its industry, outperforming 43.18% of the companies in the same industry.
- SWK's Operating Margin has declined in the last couple of years.
- SWK has a Gross Margin (30.14%) which 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.
- SWK has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for SWK remains at a similar level compared to 5 years ago.
- SWK has a better debt/assets ratio than last year.
2.2 Solvency
- SWK has an Altman-Z score of 1.99. 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 1.99, SWK is not doing good in the industry: 64.39% of the companies in the same industry are doing better.
- 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 Debt to Equity ratio of 0.67. This is in the lower half of the industry: SWK underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.52
WACC9.15%
2.3 Liquidity
- SWK has a Current Ratio of 1.11. 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 (1.11) than 84.85% of its industry peers.
- SWK has a Quick Ratio of 1.11. This is a bad value and indicates that SWK is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.35, SWK is not doing good in the industry: 91.67% 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
- 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%.
- The Revenue has been growing slightly by 1.25% on average over the past years.
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.
- SWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.37% yearly.
EPS Next Y5.32%
EPS Next 2Y14.46%
EPS Next 3Y15.18%
EPS Next 5Y18.07%
Revenue Next Year-0.19%
Revenue Next 2Y1.17%
Revenue Next 3Y1.99%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- SWK is valuated correctly with a Price/Earnings ratio of 16.56.
- Based on the Price/Earnings ratio, SWK is valued cheaper than 82.58% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SWK to the average of the S&P500 Index (28.32), we can say SWK is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 13.77, SWK is valued correctly.
- SWK's Price/Forward Earnings ratio is rather cheap when compared to the industry. SWK is cheaper than 88.64% of the companies in the same industry.
- SWK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.56 | ||
| Fwd PE | 13.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SWK is valued a bit cheaper than the industry average as 78.03% of the companies are valued more expensively.
- The rest of the industry has a similar Price/Free Cash Flow ratio as SWK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.96 | ||
| EV/EBITDA | 10.92 |
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 15.18% in the coming years.
PEG (NY)3.11
PEG (5Y)N/A
EPS Next 2Y14.46%
EPS Next 3Y15.18%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.20%, SWK is a good candidate for dividend investing.
- SWK's Dividend Yield is rather good when compared to the industry average which is at 1.01. SWK pays more dividend than 97.73% of the companies in the same industry.
- SWK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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 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 2Y14.46%
EPS Next 3Y15.18%
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 16.56 and the Price/Book (PB) ratio is 1.36.
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 5.32% in the next year.