STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWK - US8545021011 - Common Stock
72.53 USD
+1.29 (+1.81%)
72.53 USD
0 (0%)
Overall SWK gets a fundamental rating of 4 out of 10. We evaluated SWK against 130 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.
Of the past 5 years SWK 4 years had a positive operating cash flow.
1.2 Ratios
SWK's Return On Assets of 2.02% is in line compared to the rest of the industry. SWK outperforms 41.54% of its industry peers.
Looking at the Return On Equity, with a value of 4.89%, SWK is doing worse than 60.00% of the companies in the same industry.
SWK has a worse Return On Invested Capital (4.78%) than 60.77% 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 10.39%.
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
SWK has a Profit Margin (2.89%) which is in line with its industry peers.
SWK's Profit Margin has declined in the last couple of years.
The Operating Margin of SWK (6.88%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SWK has declined.
SWK's Gross Margin of 30.14% is in line compared to the rest of the industry. SWK outperforms 48.46% 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
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.
Compared to 5 years ago, SWK has about the same amount of shares outstanding.
The debt/assets ratio for SWK has been reduced compared to a year ago.
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.
SWK's Altman-Z score of 1.95 is on the low side compared to the rest of the industry. SWK is outperformed by 63.85% of its industry peers.
SWK has a debt to FCF ratio of 17.89. This is a negative value and a sign of low solvency as SWK would need 17.89 years to pay back of all of its debts.
SWK has a worse Debt to FCF ratio (17.89) than 64.62% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that 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 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.53
WACC8.94%
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.
SWK's Current ratio of 1.11 is on the low side compared to the rest of the industry. SWK is outperformed by 84.62% of its industry peers.
A Quick Ratio of 0.35 indicates that SWK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.35, SWK is doing worse than 93.08% of the companies in the same industry.
| 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
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
Based on estimates for the next years, SWK will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.07% on average per year.
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 Y6.79%
EPS Next 2Y15.5%
EPS Next 3Y15.21%
EPS Next 5Y18.07%
Revenue Next Year0.24%
Revenue Next 2Y1.93%
Revenue Next 3Y2.55%
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
SWK is valuated correctly with a Price/Earnings ratio of 15.27.
Based on the Price/Earnings ratio, SWK is valued cheaply inside the industry as 83.85% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.37. SWK is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.47 indicates a correct valuation of SWK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWK indicates a rather cheap valuation: SWK is cheaper than 84.62% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SWK to the average of the S&P500 Index (36.20), we can say SWK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 12.47 |
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.
SWK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.39 | ||
| EV/EBITDA | 10.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as SWK's earnings are expected to grow with 15.21% in the coming years.
PEG (NY)2.25
PEG (5Y)N/A
EPS Next 2Y15.5%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.62%, SWK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.90, SWK pays a better dividend. On top of this SWK pays more dividend than 96.92% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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
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 2Y15.5%
EPS Next 3Y15.21%
72.53
+1.29 (+1.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.48%
Inst Owner Change-1.3%
Ins Owners0.35%
Ins Owner Change0.29%
Market Cap11.23B
Revenue(TTM)15.17B
Net Income(TTM)438.60M
Analysts69.17
Price Target82.79 (14.15%)
Short Float %3.18%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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)-7.14%
PT rev (3m)-8.09%
EPS NQ rev (1m)-19.53%
EPS NQ rev (3m)-20.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-1.09%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 12.47 | ||
| P/S | 0.74 | ||
| P/FCF | 30.39 | ||
| P/OCF | 16.17 | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.32 |
EPS(TTM)4.75
EY6.55%
EPS(NY)5.82
Fwd EY8.02%
FCF(TTM)2.39
FCFY3.29%
OCF(TTM)4.48
OCFY6.18%
SpS97.92
BVpS57.96
TBVpS-16.66
PEG (NY)2.25
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
WACC8.94%
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 Y6.79%
EPS Next 2Y15.5%
EPS Next 3Y15.21%
EPS Next 5Y18.07%
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%0.13%
Revenue Next Year0.24%
Revenue Next 2Y1.93%
Revenue Next 3Y2.55%
Revenue Next 5Y4.37%
EBIT growth 1Y23.56%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year24.45%
EBIT Next 3Y15.48%
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 15.27 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.