STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWK - US8545021011 - Common Stock
72.47 USD
+0.26 (+0.36%)
72.64 USD
+0.17 (+0.23%)
SWK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 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.
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
The Return On Assets of SWK (2.02%) is comparable to the rest of the industry.
SWK has a Return On Equity of 4.89%. This is comparable to the rest of the industry: SWK outperforms 40.77% of its industry peers.
With a Return On Invested Capital value of 4.78%, SWK is not doing good in the industry: 60.77% of the companies in the same industry are doing better.
SWK had an Average Return On Invested Capital over the past 3 years of 3.22%. This is significantly below the industry average of 10.46%.
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 43.08% 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 43.85% 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 in line with its industry peers.
In the last couple of years the Gross Margin of SWK has declined.
| 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.
The number of shares outstanding for SWK has been increased compared to 1 year ago.
Compared to 5 years ago, SWK has about the same amount of shares outstanding.
SWK has a better debt/assets ratio than last year.
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.
With a Altman-Z score value of 1.95, SWK is not doing good in the industry: 63.85% 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 65.38% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that SWK is somewhat dependend on debt financing.
The Debt to Equity ratio of SWK (0.67) is worse than 66.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.53
WACC9%
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 84.62% of its industry peers.
A Quick Ratio of 0.35 indicates that SWK may have some problems paying its short term obligations.
SWK has a worse Quick ratio (0.35) than 93.08% of its industry peers.
| 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.
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.
Looking at the last year, SWK shows a decrease in Revenue. The Revenue has decreased by -1.40% in the last 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.
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.
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 15.26 indicates a correct valuation of SWK.
SWK's Price/Earnings ratio is rather cheap when compared to the industry. SWK is cheaper than 83.85% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.49, SWK is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.56, which indicates a correct valuation of SWK.
Based on the Price/Forward Earnings ratio, SWK is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
SWK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWK is valued a bit cheaper than 75.38% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SWK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.37 | ||
| EV/EBITDA | 10.31 |
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 15.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.88
PEG (5Y)N/A
EPS Next 2Y15.04%
EPS Next 3Y15.56%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 4.60%, which is a nice return.
SWK's Dividend Yield is rather good when compared to the industry average which is at 1.84. SWK pays more dividend than 97.69% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, SWK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
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
113.61% of the earnings are spent on dividend by SWK. 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%
72.47
+0.26 (+0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.13%
Inst Owner Change-1.13%
Ins Owners0.35%
Ins Owner Change0.29%
Market Cap11.22B
Revenue(TTM)15.17B
Net Income(TTM)438.60M
Analysts69.57
Price Target82.79 (14.24%)
Short Float %3.18%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
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)-3.37%
EPS NQ rev (3m)-20.47%
EPS NY rev (1m)-1.41%
EPS NY rev (3m)-1.42%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 12.56 | ||
| P/S | 0.74 | ||
| P/FCF | 30.37 | ||
| P/OCF | 16.16 | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.31 |
EPS(TTM)4.75
EY6.55%
EPS(NY)5.77
Fwd EY7.96%
FCF(TTM)2.39
FCFY3.29%
OCF(TTM)4.48
OCFY6.19%
SpS97.92
BVpS57.96
TBVpS-16.66
PEG (NY)2.88
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%
ROIC/WACC0.53
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 15.26 and the Price/Book (PB) ratio is 1.25.
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.