STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - NYSE:SWK - US8545021011 - Common Stock
71.835 USD
-0.25 (-0.34%)
Taking everything into account, SWK scores 4 out of 10 in our fundamental rating. SWK was compared to 130 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. 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.
SWK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.13%, SWK perfoms like the industry average, outperforming 40.77% of the companies in the same industry.
SWK has a Return On Equity (5.28%) which is in line with its industry peers.
SWK has a Return On Invested Capital of 4.60%. This is in the lower half of the industry: SWK underperforms 61.54% 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 10.00%.
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 41.54% of the companies in the same industry.
SWK's Profit Margin has declined in the last couple of years.
SWK has a Operating Margin of 6.51%. This is comparable to the rest of the industry: SWK outperforms 42.31% of its industry peers.
SWK's Operating Margin has declined in the last couple of years.
SWK's Gross Margin of 29.88% is in line compared to the rest of the industry. SWK outperforms 46.15% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWK is destroying value.
Compared to 1 year ago, SWK has more shares outstanding
SWK has about the same amout of shares outstanding than it did 5 years ago.
SWK has a better debt/assets ratio than last year.
2.2 Solvency
SWK has an Altman-Z score of 1.85. 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 1.85, SWK is doing worse than 69.23% of the companies in the same industry.
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.
SWK has a worse Debt to FCF ratio (16.14) than 65.38% of its industry peers.
SWK has a Debt/Equity ratio of 0.64. This is a neutral value indicating SWK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, SWK is not doing good in the industry: 63.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 16.14 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.51
WACC9.03%
2.3 Liquidity
SWK has a Current Ratio of 1.04. 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 1.04 is on the low side compared to the rest of the industry. SWK is outperformed by 86.92% of its industry peers.
A Quick Ratio of 0.34 indicates that SWK may have some problems paying its short term obligations.
SWK's Quick ratio of 0.34 is on the low side compared to the rest of the industry. SWK is outperformed by 93.08% 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.
The earnings per share for SWK have been decreasing by -12.27% on average. This is quite bad
SWK shows a decrease in Revenue. In the last year, the revenue decreased by -2.71%.
SWK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.25% yearly.
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
SWK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.76% yearly.
The Revenue is expected to grow by 4.40% on average over the next years.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.82 indicates a correct valuation of SWK.
83.08% of the companies in the same industry are more expensive than SWK, based on the Price/Earnings ratio.
SWK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
A Price/Forward Earnings ratio of 12.35 indicates a correct valuation of SWK.
Based on the Price/Forward Earnings ratio, SWK is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
SWK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 12.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWK is valued a bit cheaper than 73.08% 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 | 26.88 | ||
| EV/EBITDA | 10.68 |
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 15.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.33
PEG (5Y)N/A
EPS Next 2Y15.5%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.72%, SWK is a good candidate for dividend investing.
SWK's Dividend Yield is rather good when compared to the industry average which is at 1.78. SWK pays more dividend than 98.46% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, SWK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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 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 2Y15.5%
EPS Next 3Y15.21%
NYSE:SWK (10/28/2025, 11:02:04 AM)
71.835
-0.25 (-0.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.48%
Inst Owner Change-0.08%
Ins Owners0.35%
Ins Owner Change0.96%
Market Cap11.12B
Revenue(TTM)15.16B
Net Income(TTM)478.30M
Analysts69.17
Price Target89.16 (24.12%)
Short Float %3.3%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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)-1.02%
PT rev (3m)0.03%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)-40.11%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)3.68%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 12.35 | ||
| P/S | 0.73 | ||
| P/FCF | 26.88 | ||
| P/OCF | 14.65 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.68 |
EPS(TTM)4.54
EY6.32%
EPS(NY)5.82
Fwd EY8.1%
FCF(TTM)2.67
FCFY3.72%
OCF(TTM)4.9
OCFY6.83%
SpS97.95
BVpS58.55
TBVpS-17.26
PEG (NY)2.33
PEG (5Y)N/A
Graham Number77.34
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%
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-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 | 1.85 |
F-Score6
WACC9.03%
ROIC/WACC0.51
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 Y6.79%
EPS Next 2Y15.5%
EPS Next 3Y15.21%
EPS Next 5Y17.76%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-1.97%
Revenue Next Year0.24%
Revenue Next 2Y1.93%
Revenue Next 3Y2.55%
Revenue Next 5Y4.4%
EBIT growth 1Y23.8%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year24.45%
EBIT Next 3Y15.48%
EBIT Next 5Y5.79%
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%
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 15.82 and the Price/Book (PB) ratio is 1.23.
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.