STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - NYSE:SWK - US8545021011 - Common Stock
78.18 USD
+0.37 (+0.48%)
78.65 USD
+0.47 (+0.6%)
SWK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. SWK may be in some trouble as it scores bad on both profitability and health. SWK has a decent growth rate and is not valued too expensively. 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.
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
Looking at the Return On Assets, with a value of 2.13%, SWK is doing worse than 60.16% of the companies in the same industry.
SWK has a Return On Equity of 5.28%. This is in the lower half of the industry: SWK underperforms 60.16% of its industry peers.
SWK has a Return On Invested Capital of 4.60%. This is in the lower half of the industry: SWK underperforms 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWK is significantly below the industry average of 10.02%.
The 3 year average ROIC (3.22%) for SWK is below the current ROIC(4.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 5.28% | ||
| ROIC | 4.6% |
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 3.15%, SWK is in line with its industry, outperforming 40.63% of the companies in the same industry.
In the last couple of years the Profit Margin of SWK has declined.
SWK's Operating Margin of 6.51% is in line compared to the rest of the industry. SWK outperforms 42.19% of its industry peers.
SWK's Operating Margin has declined in the last couple of years.
SWK has a Gross Margin of 29.88%. This is comparable to the rest of the industry: SWK outperforms 46.09% of its industry peers.
In the last couple of years the Gross Margin of SWK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.51% | ||
| PM (TTM) | 3.15% | ||
| GM | 29.88% |
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.
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.
SWK has a better debt/assets ratio than last year.
2.2 Solvency
SWK has an Altman-Z score of 1.89. 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.
The Altman-Z score of SWK (1.89) is worse than 67.19% of its industry peers.
SWK has a debt to FCF ratio of 16.14. This is a negative value and a sign of low solvency as SWK would need 16.14 years to pay back of all of its debts.
With a Debt to FCF ratio value of 16.14, SWK is not doing good in the industry: 67.97% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.64 indicates that SWK is somewhat dependend on debt financing.
The Debt to Equity ratio of SWK (0.64) is worse than 63.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 16.14 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.49
WACC9.45%
2.3 Liquidity
A Current Ratio of 1.04 indicates that SWK should not have too much problems paying its short term obligations.
The Current ratio of SWK (1.04) is worse than 87.50% of its industry peers.
A Quick Ratio of 0.34 indicates that SWK may have some problems paying its short term obligations.
SWK has a worse Quick ratio (0.34) than 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
SWK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.41%, 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.
The Revenue has decreased by -2.71% in the past 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)25.41%
EPS 3Y-27.43%
EPS 5Y-12.27%
EPS Q2Q%-0.92%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-1.97%
3.2 Future
The Earnings Per Share is expected to grow by 16.13% 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 2.70% on average per year.
EPS Next Y6.81%
EPS Next 2Y15.58%
EPS Next 3Y16.13%
EPS Next 5YN/A
Revenue Next Year0.18%
Revenue Next 2Y2.08%
Revenue Next 3Y2.7%
Revenue Next 5YN/A
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
SWK is valuated rather expensively with a Price/Earnings ratio of 17.22.
78.13% of the companies in the same industry are more expensive than SWK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SWK to the average of the S&P500 Index (27.20), we can say SWK is valued slightly cheaper.
SWK is valuated correctly with a Price/Forward Earnings ratio of 13.42.
Based on the Price/Forward Earnings ratio, SWK is valued cheaply inside the industry as 85.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, SWK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 13.42 |
4.2 Price Multiples
71.09% of the companies in the same industry are more expensive than SWK, based on the Enterprise Value to EBITDA ratio.
SWK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.26 | ||
| EV/EBITDA | 11.3 |
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 16.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.53
PEG (5Y)N/A
EPS Next 2Y15.58%
EPS Next 3Y16.13%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 4.18%, which is a nice return.
Compared to an average industry Dividend Yield of 1.74, SWK pays a better dividend. On top of this SWK pays more dividend than 97.66% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SWK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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 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 103.72% 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.
DP103.72%
EPS Next 2Y15.58%
EPS Next 3Y16.13%
78.18
+0.37 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.67%
Inst Owner Change-1.59%
Ins Owners0.34%
Ins Owner Change2.64%
Market Cap12.10B
Analysts69.17
Price Target90.08 (15.22%)
Short Float %3.59%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Yearly Dividend3.2
Dividend Growth(5Y)3.92%
DP103.72%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)87.09%
Min EPS beat(2)12.45%
Max EPS beat(2)161.74%
EPS beat(4)4
Avg EPS beat(4)51.38%
Min EPS beat(4)12.45%
Max EPS beat(4)161.74%
EPS beat(8)8
Avg EPS beat(8)34.64%
EPS beat(12)12
Avg EPS beat(12)39.02%
EPS beat(16)15
Avg EPS beat(16)31.36%
Revenue beat(2)1
Avg Revenue beat(2)-0.88%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)0.58%
Revenue beat(4)2
Avg Revenue beat(4)-0.3%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)2.95%
Revenue beat(8)3
Avg Revenue beat(8)-0.79%
Revenue beat(12)5
Avg Revenue beat(12)-0.45%
Revenue beat(16)5
Avg Revenue beat(16)-2.7%
PT rev (1m)0.35%
PT rev (3m)3.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.56%
EPS NY rev (1m)3.7%
EPS NY rev (3m)7.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.61%
Revenue NY rev (1m)-1.94%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 13.42 | ||
| P/S | 0.8 | ||
| P/FCF | 29.26 | ||
| P/OCF | 15.94 | ||
| P/B | 1.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.3 |
EPS(TTM)4.54
EY5.81%
EPS(NY)5.82
Fwd EY7.45%
FCF(TTM)2.67
FCFY3.42%
OCF(TTM)4.9
OCFY6.27%
SpS97.95
BVpS58.55
TBVpS-17.26
PEG (NY)2.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 5.28% | ||
| ROCE | 6.21% | ||
| ROIC | 4.6% | ||
| ROICexc | 4.68% | ||
| ROICexgc | 15.84% | ||
| OM | 6.51% | ||
| PM (TTM) | 3.15% | ||
| GM | 29.88% | ||
| FCFM | 2.73% |
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%
ROICexcg growth 3Y-9.54%
ROICexcg 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-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 16.14 | ||
| Debt/EBITDA | 3.78 | ||
| Cap/Depr | 62.52% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.3% | ||
| Profit Quality | 86.47% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 1.89 |
F-Score6
WACC9.45%
ROIC/WACC0.49
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)25.41%
EPS 3Y-27.43%
EPS 5Y-12.27%
EPS Q2Q%-0.92%
EPS Next Y6.81%
EPS Next 2Y15.58%
EPS Next 3Y16.13%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-1.97%
Revenue Next Year0.18%
Revenue Next 2Y2.08%
Revenue Next 3Y2.7%
Revenue Next 5YN/A
EBIT growth 1Y23.8%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year24.53%
EBIT Next 3Y15.48%
EBIT Next 5YN/A
FCF growth 1Y332.62%
FCF growth 3Y73.57%
FCF growth 5Y-6.98%
OCF growth 1Y272.89%
OCF growth 3Y18.63%
OCF growth 5Y-5.97%