STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
NYSE:SWK - New York Stock Exchange, Inc. - US8545021011 - Common Stock - Currency: USD
SWK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 129 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
SWK had positive earnings in the past year.
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
SWK has a worse Return On Assets (-0.91%) than 69.05% of its industry peers.
With a Return On Equity value of -2.31%, SWK is not doing good in the industry: 67.46% of the companies in the same industry are doing better.
SWK has a Return On Invested Capital of 3.80%. This is in the lower half of the industry: SWK underperforms 66.67% 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 11.07%.
| 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
SWK has a Operating Margin of 5.50%. This is comparable to the rest of the industry: SWK outperforms 40.48% of its industry peers.
In the last couple of years the Operating Margin of SWK has declined.
SWK has a Gross Margin (29.63%) which is in line with its industry peers.
In the last couple of years the Gross Margin of SWK has declined.
| 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.
SWK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SWK has more shares outstanding
The debt/assets ratio for SWK is higher compared to a year ago.
2.2 Solvency
SWK has an Altman-Z score of 2.00. 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.
SWK has a Altman-Z score of 2.00. This is in the lower half of the industry: SWK underperforms 65.87% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.77, SWK is in line with its industry, outperforming 46.03% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that SWK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, SWK is doing worse than 69.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 7.77 | ||
| Altman-Z | 2 |
ROIC/WACC0.41
WACC9.28%
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 has a Current ratio of 1.29. This is amonst the worse of the industry: SWK underperforms 86.51% 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 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 781.40% over the past year.
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.
SWK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.45% yearly.
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 Y188.94%
EPS Next 2Y93.81%
EPS Next 3Y66.54%
EPS Next 5Y55.5%
Revenue Next Year-3.87%
Revenue Next 2Y-1.51%
Revenue Next 3Y0.28%
Revenue Next 5Y1.08%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 22.47, the valuation of SWK can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SWK is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SWK to the average of the S&P500 Index (28.36), we can say SWK is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.64, which indicates a correct valuation of SWK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWK indicates a somewhat cheap valuation: SWK is cheaper than 76.19% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.49. SWK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 15.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWK indicates a somewhat cheap valuation: SWK is cheaper than 61.90% of the companies listed in the same industry.
SWK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SWK is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.72 | ||
| EV/EBITDA | 13.42 |
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.
SWK's earnings are expected to grow with 66.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y93.81%
EPS Next 3Y66.54%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 3.65%. Purely for dividend investing, there may be better candidates out there.
SWK's Dividend Yield is rather good when compared to the industry average which is at 1.61. SWK pays more dividend than 97.62% of the companies in the same industry.
SWK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.92%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
SWK has negative earnings and hence a negative payout ratio. The dividend may be in danger.
SWK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-238.54%
EPS Next 2Y93.81%
EPS Next 3Y66.54%
STANLEY BLACK & DECKER INC
NYSE:SWK (2/3/2025, 8:04:00 PM)
After market: 85.4 +0.23 (+0.27%)85.17
-2.9 (-3.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners90.85%
Inst Owner Change0%
Ins Owners0.23%
Ins Owner Change0.65%
Market Cap13.13B
Analysts66.96
Price Target104.33 (22.5%)
Short Float %3.43%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Yearly Dividend3.15
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)-1.54%
PT rev (3m)-9.32%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)-27.33%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-2.72%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 15.64 | ||
| P/S | 0.85 | ||
| P/FCF | 15.72 | ||
| P/OCF | 10.97 | ||
| P/B | 1.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.42 |
EPS(TTM)3.79
EY4.45%
EPS(NY)5.45
Fwd EY6.39%
FCF(TTM)5.42
FCFY6.36%
OCF(TTM)7.77
OCFY9.12%
SpS99.78
BVpS57.47
TBVpS-19.02
PEG (NY)0.12
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 | 2 |
F-Score5
WACC9.28%
ROIC/WACC0.41
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 Y188.94%
EPS Next 2Y93.81%
EPS Next 3Y66.54%
EPS Next 5Y55.5%
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y2.78%
Revenue growth 5Y2.45%
Sales Q2Q%-5.12%
Revenue Next Year-3.87%
Revenue Next 2Y-1.51%
Revenue Next 3Y0.28%
Revenue Next 5Y1.08%
EBIT growth 1Y146.96%
EBIT growth 3Y-39.5%
EBIT growth 5Y-24.66%
EBIT Next Year77.2%
EBIT Next 3Y34.02%
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%