STANLEY BLACK & DECKER INC (SWK)
US8545021011 - Common Stock
We assign a fundamental rating of 3 out of 10 to SWK. SWK was compared to 131 industry peers in the Machinery industry. SWK has a bad profitability rating. Also its financial health evaluation is rather negative. 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
In the past year SWK was profitable.
SWK had a positive operating cash flow in the past year.
Of the past 5 years SWK 4 years were profitable.
Of the past 5 years SWK 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.91%, SWK is doing worse than 68.50% of the companies in the same industry.
With a Return On Equity value of -2.31%, SWK is not doing good in the industry: 66.93% of the companies in the same industry are doing better.
SWK has a worse Return On Invested Capital (3.80%) than 66.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SWK is significantly below the industry average of 11.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.91% | ||
| ROE | -2.31% | ||
| ROIC | 3.8% |
ROA(3y)2.96%
ROA(5y)3.73%
ROE(3y)7.31%
ROE(5y)8.67%
ROIC(3y)4.2%
ROIC(5y)5.76%
1.3 Margins
Looking at the Operating Margin, with a value of 5.50%, SWK is in line with its industry, outperforming 40.16% of the companies in the same industry.
In the last couple of years the Operating Margin of SWK has declined.
With a Gross Margin value of 29.63%, SWK perfoms like the industry average, outperforming 46.46% of the companies in the same industry.
SWK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.5% | ||
| PM (TTM) | N/A | ||
| GM | 29.63% |
OM growth 3Y-41.13%
OM growth 5Y-26.46%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.17%
GM growth 5Y-5.88%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWK 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 has been increased compared to 5 years ago.
Compared to 1 year ago, SWK has a worse debt to assets ratio.
2.2 Solvency
SWK has an Altman-Z score of 1.95. This is not the best score and indicates that SWK is in the grey zone with still 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: 69.29% of the companies in the same industry are doing better.
SWK has a debt to FCF ratio of 7.77. This is a slightly negative value and a sign of low solvency as SWK would need 7.77 years to pay back of all of its debts.
SWK's Debt to FCF ratio of 7.77 is in line compared to the rest of the industry. SWK outperforms 45.67% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that SWK is somewhat dependend on debt financing.
SWK has a worse Debt to Equity ratio (0.68) than 68.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 7.77 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.43
WACC8.88%
2.3 Liquidity
SWK has a Current Ratio of 1.29. This is a normal value and indicates that SWK is financially healthy and should not expect problems in meeting its short term obligations.
SWK's Current ratio of 1.29 is on the low side compared to the rest of the industry. SWK is outperformed by 86.61% of its industry peers.
SWK has a Quick Ratio of 1.29. 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 0.42, SWK is doing worse than 94.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
SWK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 781.40%, which is quite impressive.
SWK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -29.20% yearly.
Looking at the last year, SWK shows a decrease in Revenue. The Revenue has decreased by -4.05% in the last year.
Measured over the past years, SWK shows a small growth in Revenue. The Revenue has been growing by 2.45% on average per year.
EPS 1Y (TTM)781.4%
EPS 3Y-45.55%
EPS 5Y-29.2%
EPS Q2Q%16.19%
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y2.78%
Revenue growth 5Y2.45%
Sales Q2Q%-5.12%
3.2 Future
The Earnings Per Share is expected to grow by 55.50% on average over the next years. This is a very strong growth
Based on estimates for the next years, SWK will show a small growth in Revenue. The Revenue will grow by 1.08% on average per year.
EPS Next Y188.76%
EPS Next 2Y95.26%
EPS Next 3Y66.93%
EPS Next 5Y55.5%
Revenue Next Year-3.88%
Revenue Next 2Y-1.03%
Revenue Next 3Y0.67%
Revenue Next 5Y1.08%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.17 indicates a rather expensive valuation of SWK.
SWK's Price/Earnings ratio is in line with the industry average.
SWK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.52 indicates a correct valuation of SWK.
Based on the Price/Forward Earnings ratio, SWK is valued a bit cheaper than the industry average as 77.17% 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 23.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 14.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWK is valued a bit cheaper than 62.99% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SWK indicates a rather cheap valuation: SWK is cheaper than 85.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.81 | ||
| EV/EBITDA | 12.59 |
4.3 Compensation for Growth
The 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 66.93% in the coming years.
PEG (NY)0.11
PEG (5Y)N/A
EPS Next 2Y95.26%
EPS Next 3Y66.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.05%, SWK is a good candidate for dividend investing.
The stock price of SWK dropped by -25.23% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.67, SWK pays a better dividend. On top of this SWK pays more dividend than 96.85% 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
5.2 History
The dividend of SWK has a limited annual growth rate of 5.92%.
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)5.92%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
The earnings of SWK are negative and hence is the payout ratio. SWK will probably not be able to sustain this dividend level.
The dividend of SWK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-238.54%
EPS Next 2Y95.26%
EPS Next 3Y66.93%
STANLEY BLACK & DECKER INC
NYSE:SWK (1/2/2025, 12:57:59 PM)
80.25
-0.04 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.85%
Inst Owner Change0.42%
Ins Owners0.23%
Ins Owner Change-0.04%
Market Cap12.37B
Analysts66.09
Price Target105.96 (32.04%)
Short Float %2.6%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Dividend Growth(5Y)5.92%
DP-238.54%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.12%
Min EPS beat(2)15.49%
Max EPS beat(2)28.75%
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)33.91%
EPS beat(12)11
Avg EPS beat(12)25.07%
EPS beat(16)15
Avg EPS beat(16)21.68%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)-0.78%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-3.3%
Max Revenue beat(4)0.22%
Revenue beat(8)2
Avg Revenue beat(8)-1.14%
Revenue beat(12)3
Avg Revenue beat(12)-2.71%
Revenue beat(16)5
Avg Revenue beat(16)-2.8%
PT rev (1m)-2.09%
PT rev (3m)-1.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.65%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-1.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.61%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 14.52 | ||
| P/S | 0.8 | ||
| P/FCF | 14.81 | ||
| P/OCF | 10.33 | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.59 |
EPS(TTM)3.79
EY4.72%
EPS(NY)5.53
Fwd EY6.89%
FCF(TTM)5.42
FCFY6.75%
OCF(TTM)7.77
OCFY9.68%
SpS99.78
BVpS57.47
TBVpS-19.02
PEG (NY)0.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.91% | ||
| ROE | -2.31% | ||
| ROCE | 4.92% | ||
| ROIC | 3.8% | ||
| ROICexc | 3.87% | ||
| ROICexgc | 12.18% | ||
| OM | 5.5% | ||
| PM (TTM) | N/A | ||
| GM | 29.63% | ||
| FCFM | 5.43% |
ROA(3y)2.96%
ROA(5y)3.73%
ROE(3y)7.31%
ROE(5y)8.67%
ROIC(3y)4.2%
ROIC(5y)5.76%
ROICexc(3y)4.25%
ROICexc(5y)5.95%
ROICexgc(3y)11.67%
ROICexgc(5y)24.36%
ROCE(3y)5.88%
ROCE(5y)7.63%
ROICexcg growth 3Y-50.51%
ROICexcg growth 5Y-35.15%
ROICexc growth 3Y-40.36%
ROICexc growth 5Y-27.21%
OM growth 3Y-41.13%
OM growth 5Y-26.46%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.17%
GM growth 5Y-5.88%
F-Score5
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 7.77 | ||
| Debt/EBITDA | 4.15 | ||
| Cap/Depr | 60.45% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 1.95 |
F-Score5
WACC8.88%
ROIC/WACC0.43
Cap/Depr(3y)78.94%
Cap/Depr(5y)74.57%
Cap/Sales(3y)2.89%
Cap/Sales(5y)2.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)781.4%
EPS 3Y-45.55%
EPS 5Y-29.2%
EPS Q2Q%16.19%
EPS Next Y188.76%
EPS Next 2Y95.26%
EPS Next 3Y66.93%
EPS Next 5Y55.5%
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y2.78%
Revenue growth 5Y2.45%
Sales Q2Q%-5.12%
Revenue Next Year-3.88%
Revenue Next 2Y-1.03%
Revenue Next 3Y0.67%
Revenue Next 5Y1.08%
EBIT growth 1Y146.96%
EBIT growth 3Y-39.5%
EBIT growth 5Y-24.66%
EBIT Next Year76.87%
EBIT Next 3Y34.04%
EBIT Next 5Y29.54%
FCF growth 1Y135.77%
FCF growth 3Y-20.14%
FCF growth 5Y2.09%
OCF growth 1Y168.85%
OCF growth 3Y-16.17%
OCF growth 5Y-1.13%