STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWK - US8545021011 - Common Stock
71.83 USD
+1.1 (+1.56%)
71.83 USD
0 (0%)
Overall SWK gets a fundamental rating of 4 out of 10. We evaluated SWK against 130 industry peers in the Machinery industry. SWK has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
SWK had positive earnings in 4 of the past 5 years.
Of the past 5 years SWK 4 years had a positive operating cash flow.
1.2 Ratios
SWK has a Return On Assets (2.02%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 4.89%, SWK is doing worse than 60.00% of the companies in the same industry.
SWK has a worse Return On Invested Capital (4.78%) than 60.77% 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 10.34%.
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
SWK has a Profit Margin (2.89%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SWK has declined.
The Operating Margin of SWK (6.88%) is comparable to the rest of the industry.
SWK's Operating Margin has declined in the last couple of years.
SWK has a Gross Margin of 30.14%. This is comparable to the rest of the industry: SWK outperforms 48.46% of its industry peers.
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.
The number of shares outstanding for SWK remains at a similar level compared to 5 years ago.
SWK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.93 indicates that SWK is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.93, SWK is not doing good in the industry: 65.38% of the companies in the same industry are doing better.
SWK has a debt to FCF ratio of 17.89. This is a negative value and a sign of low solvency as SWK would need 17.89 years to pay back of all of its debts.
SWK has a worse Debt to FCF ratio (17.89) than 65.38% of its industry peers.
SWK has a Debt/Equity ratio of 0.67. This is a neutral value indicating SWK is somewhat dependend on debt financing.
SWK has a worse Debt to Equity ratio (0.67) than 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.54
WACC8.9%
2.3 Liquidity
A Current Ratio of 1.11 indicates that SWK should not have too much problems paying its short term obligations.
SWK's Current ratio of 1.11 is on the low side compared to the rest of the industry. SWK is outperformed by 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.
SWK's Quick ratio of 0.35 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 | 1.11 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.33% over the past year.
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.
The Revenue has decreased by -1.40% in the past year.
SWK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.25% yearly.
EPS 1Y (TTM)25.33%
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
The Earnings Per Share is expected to grow by 17.76% 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 4.40% on average per year.
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
The Price/Earnings ratio is 15.12, which indicates a correct valuation of SWK.
Based on the Price/Earnings ratio, SWK is valued cheaply inside the industry as 83.85% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SWK to the average of the S&P500 Index (26.15), we can say SWK is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.35, the valuation of SWK can be described as correct.
Based on the Price/Forward Earnings ratio, SWK is valued cheaper than 85.38% of the companies in the same industry.
SWK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 12.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWK is valued a bit cheaper than 75.38% of the companies in the same industry.
SWK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.08 | ||
| EV/EBITDA | 10.14 |
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)2.23
PEG (5Y)N/A
EPS Next 2Y15.5%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 5.32%, which is a nice return.
Compared to an average industry Dividend Yield of 1.97, SWK pays a better dividend. On top of this SWK pays more dividend than 97.69% of the companies listed in the same industry.
SWK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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 113.61% 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.
DP113.61%
EPS Next 2Y15.5%
EPS Next 3Y15.21%
71.83
+1.1 (+1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.48%
Inst Owner Change-1.3%
Ins Owners0.35%
Ins Owner Change0.29%
Market Cap11.12B
Revenue(TTM)15.17B
Net Income(TTM)438.60M
Analysts69.17
Price Target82.79 (15.26%)
Short Float %3.76%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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)-7.14%
PT rev (3m)-8.09%
EPS NQ rev (1m)-19.53%
EPS NQ rev (3m)-20.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)-1.09%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 12.35 | ||
| P/S | 0.73 | ||
| P/FCF | 30.08 | ||
| P/OCF | 16.01 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.14 |
EPS(TTM)4.75
EY6.61%
EPS(NY)5.82
Fwd EY8.1%
FCF(TTM)2.39
FCFY3.32%
OCF(TTM)4.49
OCFY6.25%
SpS97.98
BVpS58
TBVpS-16.67
PEG (NY)2.23
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 | 1.93 |
F-Score7
WACC8.9%
ROIC/WACC0.54
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 15.12 and the Price/Book (PB) ratio is 1.24.
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.