STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
NYSE:SWK - New York Stock Exchange, Inc. - US8545021011 - Common Stock - Currency: USD
Overall SWK gets a fundamental rating of 4 out of 10. We evaluated SWK against 127 industry peers in the Machinery industry. Both the profitability and financial health of SWK have multiple concerns. SWK has a decent growth rate and is not valued too expensively. Finally SWK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SWK had positive earnings in the past year.
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
SWK has a worse Return On Assets (1.35%) than 61.42% of its industry peers.
SWK has a Return On Equity (3.38%) which is comparable to the rest of the industry.
SWK has a Return On Invested Capital of 4.30%. This is in the lower half of the industry: SWK underperforms 64.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWK is significantly below the industry average of 10.85%.
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
With a Profit Margin value of 1.92%, SWK is not doing good in the industry: 61.42% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of SWK has declined.
SWK has a Operating Margin of 6.00%. This is comparable to the rest of the industry: SWK outperforms 41.73% of its industry peers.
SWK's Operating Margin has declined in the last couple of years.
The Gross Margin of SWK (29.96%) 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% | ||
| 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
SWK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SWK has been increased compared to 1 year ago.
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
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.
Looking at the Debt to FCF ratio, with a value of 8.10, SWK is in line with its industry, outperforming 43.31% of the companies in the same industry.
SWK has a Debt/Equity ratio of 0.64. This is a neutral value indicating SWK is somewhat dependend on debt financing.
SWK's Debt to Equity ratio of 0.64 is on the low side compared to the rest of the industry. SWK is outperformed by 66.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 8.1 | ||
| Altman-Z | N/A |
ROIC/WACC0.4
WACC10.73%
2.3 Liquidity
SWK has a Current Ratio of 1.30. This is a normal value and indicates that SWK is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.30, SWK is not doing good in the industry: 85.04% of the companies in the same industry are doing better.
SWK has a Quick Ratio of 1.30. This is a bad value and indicates that SWK is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.37, SWK is doing worse than 94.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
SWK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 200.69%, which is quite impressive.
The earnings per share for SWK have been decreasing by -12.27% on average. This is quite bad
SWK shows a decrease in Revenue. In the last year, the revenue decreased by -2.63%.
The Revenue has been growing slightly by 1.25% on average over the past years.
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 19.55% on average per year.
The Revenue is expected to grow by 2.83% on average over the next years.
EPS Next Y21.19%
EPS Next 2Y22.17%
EPS Next 3Y19.55%
EPS Next 5YN/A
Revenue Next Year0.9%
Revenue Next 2Y2.45%
Revenue Next 3Y2.83%
Revenue Next 5YN/A
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 rather expensively with a Price/Earnings ratio of 20.41.
Based on the Price/Earnings ratio, SWK is valued a bit cheaper than the industry average as 64.57% of the companies are valued more expensively.
SWK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
SWK is valuated correctly with a Price/Forward Earnings ratio of 16.84.
SWK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SWK is cheaper than 73.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SWK to the average of the S&P500 Index (22.10), we can say SWK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.41 | ||
| Fwd PE | 16.84 |
4.2 Price Multiples
SWK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SWK is cheaper than 60.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SWK is valued cheaper than 80.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.21 | ||
| EV/EBITDA | 12.53 |
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 19.55% in the coming years.
PEG (NY)0.96
PEG (5Y)N/A
EPS Next 2Y22.17%
EPS Next 3Y19.55%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 3.85%. Purely for dividend investing, there may be better candidates out there.
SWK's Dividend Yield is rather good when compared to the industry average which is at 1.77. SWK pays more dividend than 96.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, SWK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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
166.90% 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.
DP166.9%
EPS Next 2Y22.17%
EPS Next 3Y19.55%
88.97
+3.86 (+4.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.42%
Inst Owner Change4.97%
Ins Owners0.24%
Ins Owner Change1.36%
Market Cap13.74B
Analysts68.33
Price Target104.36 (17.3%)
Short Float %4.33%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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)-0.96%
PT rev (3m)-4.52%
EPS NQ rev (1m)-28.06%
EPS NQ rev (3m)-29.2%
EPS NY rev (1m)-2.98%
EPS NY rev (3m)-5.58%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.41 | ||
| Fwd PE | 16.84 | ||
| P/S | 0.89 | ||
| P/FCF | 18.21 | ||
| P/OCF | 12.39 | ||
| P/B | 1.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.53 |
EPS(TTM)4.36
EY4.9%
EPS(NY)5.28
Fwd EY5.94%
FCF(TTM)4.88
FCFY5.49%
OCF(TTM)7.18
OCFY8.07%
SpS99.67
BVpS56.56
TBVpS-18.92
PEG (NY)0.96
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
WACC10.73%
ROIC/WACC0.4
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 Y21.19%
EPS Next 2Y22.17%
EPS Next 3Y19.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-0.43%
Revenue Next Year0.9%
Revenue Next 2Y2.45%
Revenue Next 3Y2.83%
Revenue Next 5YN/A
EBIT growth 1Y62.32%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year39.37%
EBIT Next 3Y22.75%
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%