STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWK - US8545021011 - Common Stock
84.61 USD
+0.21 (+0.25%)
74.62 USD
-9.99 (-11.81%)
Taking everything into account, SWK scores 4 out of 10 in our fundamental rating. SWK was compared to 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.
- 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
- The Return On Assets of SWK (2.02%) is comparable to the rest of the industry.
- With a Return On Equity value of 4.89%, SWK perfoms like the industry average, 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.
- The Average Return On Invested Capital over the past 3 years for SWK is significantly below the industry average of 10.24%.
- The 3 year average ROIC (3.22%) for SWK is below the current ROIC(4.78%), indicating increased profibility in the last year.
| 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 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
- 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.
- The debt/assets ratio for SWK has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.03 indicates that SWK is not a great score, but indicates only limited risk for bankruptcy at the moment.
- SWK has a Altman-Z score of 2.03. This is in the lower half of the industry: SWK underperforms 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 has a worse Debt to FCF ratio (17.89) than 64.39% 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.
- SWK has a Debt to Equity ratio of 0.67. This is in the lower half of the industry: SWK underperforms 65.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.53
WACC9.08%
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.
- Looking at the Current ratio, with a value of 1.11, SWK is doing worse than 84.85% of the companies in the same industry.
- A Quick Ratio of 0.35 indicates that SWK may have some problems paying 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 91.67% 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
- SWK shows a decrease in Revenue. In the last year, the revenue decreased by -1.40%.
- 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
- The Earnings Per Share is expected to grow by 18.07% on average over the next years. This is quite good.
- 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 2Y15.14%
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 17.81.
- Compared to the rest of the industry, the Price/Earnings ratio of SWK indicates a rather cheap valuation: SWK is cheaper than 81.82% of the companies listed in the same industry.
- SWK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 14.64, which indicates a correct valuation of SWK.
- 87.12% of the companies in the same industry are more expensive than SWK, based on the Price/Forward Earnings ratio.
- SWK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.81 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
- SWK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SWK is cheaper than 76.52% of the companies in the same industry.
- SWK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.46 | ||
| EV/EBITDA | 11.49 |
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.
- SWK's earnings are expected to grow with 15.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.37
PEG (5Y)N/A
EPS Next 2Y15.14%
EPS Next 3Y15.62%
5. Dividend
5.1 Amount
- SWK has a Yearly Dividend Yield of 3.93%. 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 0.78. 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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
- SWK pays out 113.61% of its income as dividend. 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%
84.61
+0.21 (+0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-04 2026-02-04/amc
Inst Owners95.54%
Inst Owner Change0.08%
Ins Owners0.35%
Ins Owner Change-0.19%
Market Cap13.10B
Revenue(TTM)15.17B
Net Income(TTM)438.60M
Analysts69.57
Price Target85.47 (1.02%)
Short Float %3.62%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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 | 17.81 | ||
| Fwd PE | 14.64 | ||
| P/S | 0.86 | ||
| P/FCF | 35.46 | ||
| P/OCF | 18.87 | ||
| P/B | 1.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.49 |
EPS(TTM)4.75
EY5.61%
EPS(NY)5.78
Fwd EY6.83%
FCF(TTM)2.39
FCFY2.82%
OCF(TTM)4.48
OCFY5.3%
SpS97.92
BVpS57.96
TBVpS-16.66
PEG (NY)3.37
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 | 2.03 |
F-Score7
WACC9.08%
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 2Y15.14%
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 17.81 and the Price/Book (PB) ratio is 1.46.
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.