STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWK - US8545021011 - Common Stock
82.35 USD
+0.86 (+1.06%)
82.35 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 has a bad profitability rating. Also its financial health evaluation is rather negative. SWK is not valued too expensively and it also shows a decent growth rate. 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
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.
SWK has a Return On Equity of 4.89%. This is comparable to the rest of the industry: SWK outperforms 42.42% of its industry peers.
The Return On Invested Capital of SWK (4.78%) is worse than 61.36% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWK is significantly below the industry average of 10.22%.
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
The Profit Margin of SWK (2.89%) is comparable to the rest of the 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.
In the last couple of years the Operating Margin of SWK has declined.
SWK has a Gross Margin of 30.14%. This is comparable to the rest of the industry: SWK outperforms 48.48% of its industry peers.
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 2.01 indicates that SWK is not a great score, but indicates only limited risk for bankruptcy at the moment.
SWK's Altman-Z score of 2.01 is on the low side compared to the rest of the industry. SWK is outperformed by 63.64% 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's Debt to FCF ratio of 17.89 is on the low side compared to the rest of the industry. SWK is outperformed by 63.64% 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.
The Debt to Equity ratio of SWK (0.67) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.52
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.11 indicates that SWK should not have too much problems paying its short term obligations.
The Current ratio of SWK (1.11) is worse 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.
SWK's Quick ratio of 0.35 is on the low side compared to the rest of the industry. SWK is outperformed by 90.91% of its industry peers.
| 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.
The earnings per share for SWK have been decreasing by -12.27% on average. This is quite bad
The Revenue has decreased by -1.40% in the past year.
Measured over the past years, SWK shows a small growth in Revenue. The Revenue has been growing by 1.25% on average per year.
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.
The Revenue is expected to grow by 4.37% on average over the next years.
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.
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
A Price/Earnings ratio of 17.34 indicates a rather expensive valuation of SWK.
81.82% of the companies in the same industry are more expensive than SWK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.19, SWK is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.25 indicates a correct valuation of SWK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWK indicates a rather cheap valuation: SWK is cheaper than 87.88% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. SWK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWK is valued a bit cheaper than the industry average as 73.48% 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 | 34.51 | ||
| EV/EBITDA | 11.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SWK's earnings are expected to grow with 15.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.28
PEG (5Y)N/A
EPS Next 2Y15.14%
EPS Next 3Y15.62%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 4.07%, which is a nice return.
SWK's Dividend Yield is rather good when compared to the industry average which is at 0.81. SWK pays more dividend than 97.73% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.90, SWK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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
113.61% of the earnings are spent on dividend by SWK. This is not a sustainable payout ratio.
SWK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP113.61%
EPS Next 2Y15.14%
EPS Next 3Y15.62%
82.35
+0.86 (+1.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.54%
Inst Owner Change0%
Ins Owners0.35%
Ins Owner Change-0.13%
Market Cap12.75B
Revenue(TTM)15.17B
Net Income(TTM)438.60M
Analysts69.57
Price Target83.5 (1.4%)
Short Float %3.62%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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)-6.35%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-19.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.34 | ||
| Fwd PE | 14.25 | ||
| P/S | 0.84 | ||
| P/FCF | 34.51 | ||
| P/OCF | 18.36 | ||
| P/B | 1.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.2 |
EPS(TTM)4.75
EY5.77%
EPS(NY)5.78
Fwd EY7.02%
FCF(TTM)2.39
FCFY2.9%
OCF(TTM)4.48
OCFY5.45%
SpS97.92
BVpS57.96
TBVpS-16.66
PEG (NY)3.28
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 | 2.01 |
F-Score7
WACC9.22%
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 2Y15.14%
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 4 / 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 17.34 and the Price/Book (PB) ratio is 1.42.
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.