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 128 industry peers in the Machinery industry. Both the profitability and financial health of SWK have multiple concerns. 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.
SWK had a positive operating cash flow in the past year.
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
SWK's Return On Assets of 1.62% is on the low side compared to the rest of the industry. SWK is outperformed by 60.94% of its industry peers.
SWK's Return On Equity of 4.13% is on the low side compared to the rest of the industry. SWK is outperformed by 60.16% of its industry peers.
The Return On Invested Capital of SWK (4.32%) is worse than 60.94% 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 10.69%.
The 3 year average ROIC (3.22%) for SWK is below the current ROIC(4.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 4.13% | ||
| ROIC | 4.32% |
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 2.40%, SWK perfoms like the industry average, outperforming 41.41% of the companies in the same industry.
SWK's Profit Margin has declined in the last couple of years.
The Operating Margin of SWK (6.20%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SWK has declined.
With a Gross Margin value of 30.30%, SWK perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
In the last couple of years the Gross Margin of SWK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.2% | ||
| PM (TTM) | 2.4% | ||
| GM | 30.3% |
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.
SWK has about the same amout of shares outstanding than it did 5 years ago.
SWK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.87 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 (1.87) than 70.31% of its industry peers.
SWK has a debt to FCF ratio of 8.81. This is a slightly negative value and a sign of low solvency as SWK would need 8.81 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.81, SWK is in line with its industry, outperforming 40.63% of the companies in the same industry.
SWK has a Debt/Equity ratio of 0.67. This is a neutral value indicating 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 66.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.81 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.46
WACC9.34%
2.3 Liquidity
SWK has a Current Ratio of 1.10. This is a normal value and indicates that SWK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.10, SWK is doing worse than 87.50% of the companies in the same industry.
SWK has a Quick Ratio of 1.10. 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 has a worse Quick ratio (0.36) than 92.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 88.02% 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 -3.04% 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)88.02%
EPS 3Y-27.43%
EPS 5Y-12.27%
EPS Q2Q%33.93%
Revenue 1Y (TTM)-3.04%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-3.23%
3.2 Future
The Earnings Per Share is expected to grow by 17.26% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.44% on average over the next years.
EPS Next Y-0.05%
EPS Next 2Y15.19%
EPS Next 3Y17.26%
EPS Next 5YN/A
Revenue Next Year2.43%
Revenue Next 2Y3.44%
Revenue Next 3Y3.44%
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
The Price/Earnings ratio is 16.02, which indicates a correct valuation of SWK.
77.34% 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 27.30, SWK is valued a bit cheaper.
SWK is valuated correctly with a Price/Forward Earnings ratio of 12.60.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWK indicates a rather cheap valuation: SWK is cheaper than 82.81% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, SWK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
71.88% of the companies in the same industry are more expensive than SWK, based on the Enterprise Value to EBITDA ratio.
81.25% of the companies in the same industry are more expensive than SWK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.74 | ||
| EV/EBITDA | 10.96 |
4.3 Compensation for Growth
SWK's earnings are expected to grow with 17.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.19%
EPS Next 3Y17.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.61%, SWK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.81, SWK pays a better dividend. On top of this SWK pays more dividend than 98.44% of the companies listed in the same industry.
SWK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
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 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
135.24% 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.
DP135.24%
EPS Next 2Y15.19%
EPS Next 3Y17.26%
72.87
-0.98 (-1.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.66%
Inst Owner Change0.02%
Ins Owners0.33%
Ins Owner Change4.05%
Market Cap11.27B
Analysts67.5
Price Target87.14 (19.58%)
Short Float %3.95%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
Yearly Dividend3.2
Dividend Growth(5Y)3.92%
DP135.24%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.14%
Min EPS beat(2)12.45%
Max EPS beat(2)15.84%
EPS beat(4)4
Avg EPS beat(4)18.13%
Min EPS beat(4)12.45%
Max EPS beat(4)28.75%
EPS beat(8)8
Avg EPS beat(8)23.29%
EPS beat(12)11
Avg EPS beat(12)24.11%
EPS beat(16)15
Avg EPS beat(16)21.57%
Revenue beat(2)2
Avg Revenue beat(2)1.76%
Min Revenue beat(2)0.58%
Max Revenue beat(2)2.95%
Revenue beat(4)2
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)2.95%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
Revenue beat(12)5
Avg Revenue beat(12)-0.96%
Revenue beat(16)5
Avg Revenue beat(16)-3.26%
PT rev (1m)-0.53%
PT rev (3m)-15.32%
EPS NQ rev (1m)8.62%
EPS NQ rev (3m)-60.48%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-17.14%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 12.6 | ||
| P/S | 0.74 | ||
| P/FCF | 14.74 | ||
| P/OCF | 10.08 | ||
| P/B | 1.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.96 |
EPS(TTM)4.55
EY6.24%
EPS(NY)5.78
Fwd EY7.94%
FCF(TTM)4.94
FCFY6.78%
OCF(TTM)7.23
OCFY9.92%
SpS98.51
BVpS57.15
TBVpS-18.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 4.13% | ||
| ROCE | 5.85% | ||
| ROIC | 4.32% | ||
| ROICexc | 4.41% | ||
| ROICexgc | 14.11% | ||
| OM | 6.2% | ||
| PM (TTM) | 2.4% | ||
| GM | 30.3% | ||
| FCFM | 5.02% |
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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.81 | ||
| Debt/EBITDA | 3.87 | ||
| Cap/Depr | 61.14% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.44% | ||
| Profit Quality | 209.39% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.87 |
F-Score8
WACC9.34%
ROIC/WACC0.46
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)88.02%
EPS 3Y-27.43%
EPS 5Y-12.27%
EPS Q2Q%33.93%
EPS Next Y-0.05%
EPS Next 2Y15.19%
EPS Next 3Y17.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.04%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-3.23%
Revenue Next Year2.43%
Revenue Next 2Y3.44%
Revenue Next 3Y3.44%
Revenue Next 5YN/A
EBIT growth 1Y26.78%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year20.45%
EBIT Next 3Y15.84%
EBIT Next 5YN/A
FCF growth 1Y179.37%
FCF growth 3Y73.57%
FCF growth 5Y-6.98%
OCF growth 1Y321.5%
OCF growth 3Y18.63%
OCF growth 5Y-5.97%