STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWK - US8545021011 - Common Stock
72.47 USD
+0.26 (+0.36%)
72.64 USD
+0.17 (+0.23%)
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. Both the profitability and financial health of SWK have multiple concerns. 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.
SWK had positive earnings in 4 of the past 5 years.
SWK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.02%, SWK is in line with its industry, outperforming 41.54% of the companies in the same industry.
SWK's Return On Equity of 4.89% is on the low side compared to the rest of the industry. SWK is outperformed by 60.00% of its industry peers.
SWK's Return On Invested Capital of 4.78% is on the low side compared to the rest of the industry. SWK is outperformed by 60.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SWK is significantly below the industry average of 10.39%.
The 3 year average ROIC (3.22%) for SWK is below the current ROIC(4.78%), indicating increased profibility in the last year.
| 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
The Profit Margin of SWK (2.89%) is comparable to the rest of the industry.
SWK's Profit Margin has declined in the last couple of years.
SWK's Operating Margin of 6.88% is in line compared to the rest of the industry. SWK outperforms 44.62% of its industry peers.
In the last couple of years the Operating Margin of SWK has declined.
SWK has a Gross Margin (30.14%) 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 | 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
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 about the same amount of shares outstanding.
Compared to 1 year ago, SWK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.94 indicates that SWK is not a great score, but indicates only limited risk for bankruptcy at the moment.
SWK's Altman-Z score of 1.94 is on the low side compared to the rest of the industry. SWK is outperformed by 63.85% of its industry peers.
The Debt to FCF ratio of SWK is 17.89, which is on the high side as it means it would take SWK, 17.89 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 17.89, SWK is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.67 indicates that SWK is somewhat dependend on debt financing.
SWK's Debt to Equity ratio of 0.67 is on the low side compared to the rest of the industry. SWK is outperformed by 66.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 17.89 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.53
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.11 indicates that SWK should not have too much problems paying its short term obligations.
SWK has a Current ratio of 1.11. This is amonst the worse of the industry: SWK underperforms 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 has a worse Quick ratio (0.35) than 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.
Looking at the last year, SWK shows a decrease in Revenue. The Revenue has decreased by -1.40% in the last year.
Measured over the past years, SWK shows a small growth in Revenue. The Revenue has been growing by 1.25% on average per year.
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
SWK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.07% yearly.
SWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.37% yearly.
EPS Next Y6.79%
EPS Next 2Y15.5%
EPS Next 3Y15.21%
EPS Next 5Y18.07%
Revenue Next Year0.24%
Revenue Next 2Y1.93%
Revenue Next 3Y2.55%
Revenue Next 5Y4.37%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 15.26.
Based on the Price/Earnings ratio, SWK is valued cheaper than 83.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of SWK to the average of the S&P500 Index (26.46), we can say SWK is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.46, the valuation of SWK can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWK indicates a rather cheap valuation: SWK is cheaper than 86.92% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SWK to the average of the S&P500 Index (36.10), we can say SWK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 12.46 |
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 76.15% of the companies listed 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 | 30.37 | ||
| EV/EBITDA | 10.29 |
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)2.25
PEG (5Y)N/A
EPS Next 2Y15.5%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 4.62%, which is a nice return.
Compared to an average industry Dividend Yield of 1.90, SWK pays a better dividend. On top of this SWK pays more dividend than 96.92% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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.
The dividend of SWK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP113.61%
EPS Next 2Y15.5%
EPS Next 3Y15.21%
72.47
+0.26 (+0.36%)
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 Cap11.22B
Revenue(TTM)15.17B
Net Income(TTM)438.60M
Analysts69.17
Price Target82.79 (14.24%)
Short Float %3.18%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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 | 15.26 | ||
| Fwd PE | 12.46 | ||
| P/S | 0.74 | ||
| P/FCF | 30.37 | ||
| P/OCF | 16.16 | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.29 |
EPS(TTM)4.75
EY6.55%
EPS(NY)5.82
Fwd EY8.03%
FCF(TTM)2.39
FCFY3.29%
OCF(TTM)4.48
OCFY6.19%
SpS97.92
BVpS57.96
TBVpS-16.66
PEG (NY)2.25
PEG (5Y)N/A
Graham Number78.71
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 | 1.94 |
F-Score7
WACC8.98%
ROIC/WACC0.53
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 5Y18.07%
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 5Y4.37%
EBIT growth 1Y23.56%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year24.45%
EBIT Next 3Y15.48%
EBIT Next 5Y9.09%
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 15.26 and the Price/Book (PB) ratio is 1.25.
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.