STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - NYSE:SWK - US8545021011 - Common Stock
62.44 USD
+0.32 (+0.52%)
62.4 USD
-0.04 (-0.06%)
SWK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. SWK may be in some trouble as it scores bad on both profitability and health. SWK is not valued too expensively and it also shows a decent growth rate. Finally SWK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SWK was profitable.
In the past year SWK had a positive cash flow from operations.
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
With a Return On Assets value of 2.02%, SWK perfoms like the industry average, outperforming 40.77% of the companies in the same industry.
SWK has a Return On Equity of 4.89%. This is in the lower half of the industry: SWK underperforms 60.77% of 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 60.77% 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 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
Looking at the Profit Margin, with a value of 2.89%, SWK is in line with its industry, outperforming 42.31% 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 of 6.88%. This is comparable to the rest of the industry: SWK outperforms 43.85% of its industry peers.
SWK's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 30.14%, SWK perfoms like the industry average, outperforming 48.46% 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 | 6.88% | ||
| 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.
SWK has more shares outstanding than it did 1 year ago.
SWK has about the same amout of shares outstanding than it did 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 1.87 indicates that SWK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.87, SWK is doing worse than 66.15% 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.
SWK has a Debt to FCF ratio of 17.89. This is in the lower half of the industry: SWK underperforms 66.15% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that SWK is somewhat dependend on debt financing.
SWK has a worse Debt to Equity ratio (0.67) than 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.53
WACC8.99%
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.
The Current ratio of SWK (1.11) is worse than 84.62% of its industry peers.
SWK has a Quick Ratio of 1.11. This is a bad value and indicates that SWK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SWK (0.35) is worse than 93.08% 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.
SWK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.27% yearly.
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
Based on estimates for the next years, SWK will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.76% on average per year.
SWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y6.79%
EPS Next 2Y15.5%
EPS Next 3Y15.21%
EPS Next 5Y17.76%
Revenue Next Year0.24%
Revenue Next 2Y1.93%
Revenue Next 3Y2.55%
Revenue Next 5Y4.4%
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
A Price/Earnings ratio of 13.15 indicates a correct valuation of SWK.
Compared to the rest of the industry, the Price/Earnings ratio of SWK indicates a rather cheap valuation: SWK is cheaper than 86.15% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.07, SWK is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 10.74, the valuation of SWK can be described as reasonable.
Based on the Price/Forward Earnings ratio, SWK is valued cheaper than 89.23% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.08. SWK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
78.46% of the companies in the same industry are more expensive than SWK, based on the Enterprise Value to EBITDA ratio.
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 | 26.15 | ||
| EV/EBITDA | 9.32 |
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)1.94
PEG (5Y)N/A
EPS Next 2Y15.5%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.93%, SWK is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.87, SWK pays a better dividend. On top of this SWK pays more dividend than 98.46% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SWK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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
SWK pays out 113.61% of its income as dividend. 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%
62.44
+0.32 (+0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.48%
Inst Owner Change-1.34%
Ins Owners0.35%
Ins Owner Change0.67%
Market Cap9.67B
Revenue(TTM)15.17B
Net Income(TTM)438.60M
Analysts69.17
Price Target88.38 (41.54%)
Short Float %3.76%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
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)-0.88%
PT rev (3m)-1.54%
EPS NQ rev (1m)-17.42%
EPS NQ rev (3m)-17.69%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)3.68%
Revenue NQ rev (1m)-0.93%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 10.74 | ||
| P/S | 0.64 | ||
| P/FCF | 26.15 | ||
| P/OCF | 13.91 | ||
| P/B | 1.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.32 |
EPS(TTM)4.75
EY7.61%
EPS(NY)5.82
Fwd EY9.31%
FCF(TTM)2.39
FCFY3.82%
OCF(TTM)4.49
OCFY7.19%
SpS97.98
BVpS58
TBVpS-16.67
PEG (NY)1.94
PEG (5Y)N/A
Graham Number78.73
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 | 1.87 |
F-Score7
WACC8.99%
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 5Y17.76%
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 5Y4.4%
EBIT growth 1Y23.56%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year24.45%
EBIT Next 3Y15.48%
EBIT Next 5Y5.79%
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 13.15 and the Price/Book (PB) ratio is 1.08.
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.