STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWK - US8545021011 - Common Stock
74.61 USD
-0.58 (-0.77%)
SWK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. Both the profitability and financial health of SWK have multiple concerns. SWK has a correct valuation and a medium 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
With a Return On Assets value of 2.02%, SWK perfoms like the industry average, outperforming 43.18% of the companies in the same industry.
SWK has a Return On Equity (4.89%) which is in line with its industry peers.
SWK's Return On Invested Capital of 4.78% is on the low side compared to the rest of the industry. SWK is outperformed by 60.61% 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 10.27%.
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 43.94% of the companies in the same industry.
In the last couple of years the Profit Margin of SWK has declined.
SWK has a Operating Margin (6.88%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SWK has declined.
SWK has a Gross Margin (30.14%) which is comparable to the rest of the industry.
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.
Compared to 1 year ago, SWK has more shares outstanding
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
SWK has an Altman-Z score of 1.97. 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.
Looking at the Altman-Z score, with a value of 1.97, SWK is doing worse than 65.15% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 17.89, SWK is doing worse than 64.39% of the companies in the same industry.
A Debt/Equity ratio of 0.67 indicates that SWK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, SWK is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.53
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.11 indicates that SWK should not have too much problems paying its short term obligations.
SWK has a worse Current ratio (1.11) than 84.09% of its industry peers.
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.
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
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.
The Revenue is expected to grow by 4.37% on average over the next years.
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
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.71, which indicates a correct valuation of SWK.
SWK's Price/Earnings ratio is rather cheap when compared to the industry. SWK is cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.77. SWK is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.91 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 90.15% 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 (23.35), we can say SWK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 12.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWK is valued a bit cheaper than the industry average as 74.24% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SWK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.27 | ||
| EV/EBITDA | 10.58 |
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.
A more expensive valuation may be justified as SWK's earnings are expected to grow with 15.62% in the coming years.
PEG (NY)2.97
PEG (5Y)N/A
EPS Next 2Y15.14%
EPS Next 3Y15.62%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 4.43%, which is a nice return.
Compared to an average industry Dividend Yield of 0.98, SWK pays a better dividend. On top of this SWK pays more dividend than 96.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, SWK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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 2Y15.14%
EPS Next 3Y15.62%
NYSE:SWK (12/31/2025, 11:56:05 AM)
74.61
-0.58 (-0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.13%
Inst Owner Change-1.12%
Ins Owners0.35%
Ins Owner Change0.56%
Market Cap11.56B
Revenue(TTM)15.17B
Net Income(TTM)438.60M
Analysts69.57
Price Target83.5 (11.92%)
Short Float %3.62%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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)0.85%
PT rev (3m)-7.3%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-20.12%
EPS NY rev (1m)-1.41%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 12.91 | ||
| P/S | 0.76 | ||
| P/FCF | 31.27 | ||
| P/OCF | 16.64 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.58 |
EPS(TTM)4.75
EY6.37%
EPS(NY)5.78
Fwd EY7.75%
FCF(TTM)2.39
FCFY3.2%
OCF(TTM)4.48
OCFY6.01%
SpS97.92
BVpS57.96
TBVpS-16.66
PEG (NY)2.97
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 | 1.97 |
F-Score7
WACC8.98%
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 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 15.71 and the Price/Book (PB) ratio is 1.29.
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.