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 4 out of 10. The analysis compared the fundamentals against 128 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
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 is not doing good in the industry: 60.16% of the companies in the same industry are doing better.
The Return On Equity of SWK (5.28%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.60%, SWK is not doing good in the industry: 60.16% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for SWK is significantly below the industry average of 10.80%.
The last Return On Invested Capital (4.60%) for SWK is above the 3 year average (3.22%), which is a sign of increasing profitability.
| 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
SWK has a Profit Margin of 3.15%. This is comparable to the rest of the industry: SWK outperforms 41.41% of its industry peers.
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 43.75% of its industry peers.
In the last couple of years the Operating Margin of SWK has declined.
SWK has a Gross Margin (29.88%) which is in line with its industry peers.
SWK's Gross Margin has declined in the last couple of years.
| 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
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
SWK has an Altman-Z score of 1.83. 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 (1.83) is worse than 70.31% of its industry peers.
The Debt to FCF ratio of SWK is 16.14, which is on the high side as it means it would take SWK, 16.14 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SWK (16.14) is worse than 67.97% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that SWK is somewhat dependend on debt financing.
SWK has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: SWK underperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 16.14 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.51
WACC8.95%
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 has a worse Current ratio (1.04) than 86.72% of its industry peers.
SWK has a Quick Ratio of 1.04. 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 0.34, SWK is doing worse than 93.75% of the companies in the same industry.
| 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.
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.
Looking at the last year, SWK shows a decrease in Revenue. The Revenue has decreased by -2.71% in the last 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)25.41%
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
Based on estimates for the next years, SWK will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.58% on average per year.
Based on estimates for the next years, SWK will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
EPS Next Y3%
EPS Next 2Y16.14%
EPS Next 3Y17.58%
EPS Next 5YN/A
Revenue Next Year2.16%
Revenue Next 2Y3.18%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
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
SWK is valuated correctly with a Price/Earnings ratio of 15.28.
SWK's Price/Earnings ratio is a bit cheaper when compared to the industry. SWK is cheaper than 79.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of SWK to the average of the S&P500 Index (27.03), we can say SWK is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.79, the valuation of SWK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SWK is valued cheaply inside the industry as 86.72% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.28, SWK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 11.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWK is valued a bit cheaper than the industry average as 77.34% of the companies are valued more expensively.
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 | 25.96 | ||
| EV/EBITDA | 10.41 |
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.
A more expensive valuation may be justified as SWK's earnings are expected to grow with 17.58% in the coming years.
PEG (NY)5.09
PEG (5Y)N/A
EPS Next 2Y16.14%
EPS Next 3Y17.58%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 4.89%, which is a nice return.
SWK's Dividend Yield is rather good when compared to the industry average which is at 1.92. SWK pays more dividend than 98.44% of the companies in the same industry.
SWK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
5.2 History
The dividend of SWK has a limited annual growth rate of 3.92%.
SWK has paid a dividend for at least 10 years, which is 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
103.72% of the earnings are spent on dividend by SWK. 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 2Y16.14%
EPS Next 3Y17.58%
69.36
+1.43 (+2.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.66%
Inst Owner Change-0.1%
Ins Owners0.33%
Ins Owner Change4.11%
Market Cap10.74B
Analysts69.17
Price Target89.76 (29.41%)
Short Float %4.29%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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)2.29%
PT rev (3m)-4.37%
EPS NQ rev (1m)-33.69%
EPS NQ rev (3m)-32.16%
EPS NY rev (1m)3.05%
EPS NY rev (3m)-11.51%
Revenue NQ rev (1m)-3.9%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.28 | ||
| Fwd PE | 11.79 | ||
| P/S | 0.71 | ||
| P/FCF | 25.96 | ||
| P/OCF | 14.14 | ||
| P/B | 1.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.41 |
EPS(TTM)4.54
EY6.55%
EPS(NY)5.88
Fwd EY8.48%
FCF(TTM)2.67
FCFY3.85%
OCF(TTM)4.9
OCFY7.07%
SpS97.95
BVpS58.55
TBVpS-17.26
PEG (NY)5.09
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 | 1.83 |
F-Score6
WACC8.95%
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 Y3%
EPS Next 2Y16.14%
EPS Next 3Y17.58%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-1.97%
Revenue Next Year2.16%
Revenue Next 2Y3.18%
Revenue Next 3Y3.32%
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%