STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
NYSE:SWK - US8545021011 - Common Stock
75.74 USD
+0.55 (+0.73%)
75.74 USD
0 (0%)
SWK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 127 industry peers in the Machinery industry. SWK may be in some trouble as it scores bad on both profitability and health. SWK has a correct valuation and a medium growth rate. 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.
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 Return On Assets of 2.13%. This is comparable to the rest of the industry: SWK outperforms 40.16% of its industry peers.
SWK has a Return On Equity of 5.28%. This is comparable to the rest of the industry: SWK outperforms 40.16% of its industry peers.
SWK's Return On Invested Capital of 4.60% is on the low side compared to the rest of the industry. SWK is outperformed by 61.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWK is significantly below the industry average of 10.48%.
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
The Profit Margin of SWK (3.15%) is comparable to the rest of the 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 43.31% 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 45.67% 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
SWK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.87. 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's Altman-Z score of 1.87 is on the low side compared to the rest of the industry. SWK is outperformed by 66.93% 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.
Looking at the Debt to FCF ratio, with a value of 16.14, SWK is doing worse than 69.29% of the companies in the same industry.
SWK has a Debt/Equity ratio of 0.64. This is a neutral value indicating 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 65.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 16.14 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.49
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.04 indicates that SWK should not have too much problems paying 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 87.40% 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.
With a Quick ratio value of 0.34, SWK is not doing good in the industry: 94.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.41% 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.
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
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
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
Based on the Price/Earnings ratio of 16.68, the valuation of SWK can be described as correct.
Based on the Price/Earnings ratio, SWK is valued cheaply inside the industry as 80.31% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.14, SWK is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.00, which indicates a correct valuation of SWK.
85.83% of the companies in the same industry are more expensive than SWK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SWK to the average of the S&P500 Index (22.80), we can say SWK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWK is valued a bit cheaper than 74.80% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SWK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.35 | ||
| EV/EBITDA | 11.05 |
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 16.13% in the coming years.
PEG (NY)2.45
PEG (5Y)N/A
EPS Next 2Y15.58%
EPS Next 3Y16.13%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 4.54%, which is a nice return.
SWK's Dividend Yield is rather good when compared to the industry average which is at 1.87. SWK pays more dividend than 98.43% of the companies in the same industry.
SWK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
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 2Y15.58%
EPS Next 3Y16.13%
75.74
+0.55 (+0.73%)
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 Change3.42%
Market Cap11.72B
Analysts69.17
Price Target90.08 (18.93%)
Short Float %4.25%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.54% |
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)1.06%
PT rev (3m)2.83%
EPS NQ rev (1m)-40.5%
EPS NQ rev (3m)-38.03%
EPS NY rev (1m)3.7%
EPS NY rev (3m)7.66%
Revenue NQ rev (1m)-3.82%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-2.04%
Revenue NY rev (3m)-2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 13 | ||
| P/S | 0.77 | ||
| P/FCF | 28.35 | ||
| P/OCF | 15.44 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.05 |
EPS(TTM)4.54
EY5.99%
EPS(NY)5.82
Fwd EY7.69%
FCF(TTM)2.67
FCFY3.53%
OCF(TTM)4.9
OCFY6.48%
SpS97.95
BVpS58.55
TBVpS-17.26
PEG (NY)2.45
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 | 1.87 |
F-Score6
WACC9.36%
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%