STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - NYSE:SWK - US8545021011 - Common Stock
76.67 USD
-2.7 (-3.4%)
76.67 USD
0 (0%)
Overall SWK gets a fundamental rating of 4 out of 10. We evaluated SWK against 129 industry peers in the Machinery industry. SWK may be in some trouble as it scores bad on both profitability and health. SWK is not valued too expensively and it also shows a decent growth rate. 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.
Of the past 5 years SWK 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SWK (2.13%) is worse than 60.16% of its industry peers.
SWK has a Return On Equity of 5.28%. This is in the lower half of the industry: SWK underperforms 60.16% of its industry peers.
SWK has a worse Return On Invested Capital (4.60%) than 62.50% 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 10.02%.
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
SWK has a Profit Margin of 3.15%. This is comparable to the rest of the industry: SWK outperforms 40.63% of its industry peers.
In the last couple of years the Profit Margin of SWK has declined.
Looking at the Operating Margin, with a value of 6.51%, SWK is in line with its industry, outperforming 42.19% of the companies in the same industry.
SWK's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 29.88%, SWK perfoms like the industry average, outperforming 46.09% of the companies in the same industry.
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.
Compared to 1 year ago, SWK has more shares outstanding
Compared to 5 years ago, SWK has about the same amount of shares outstanding.
SWK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.90 indicates that SWK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.90, SWK is doing worse than 67.97% 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 67.97% 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.
SWK has a worse Debt to Equity ratio (0.64) than 63.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 16.14 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.48
WACC9.52%
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.
Looking at the Current ratio, with a value of 1.04, SWK is doing worse than 87.50% of the companies in the same industry.
A Quick Ratio of 0.34 indicates that SWK may have some problems paying its short term obligations.
The Quick ratio of SWK (0.34) is worse than 93.75% of its industry peers.
| 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.
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%.
The Revenue has been growing slightly by 1.25% on average over the past years.
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
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
A Price/Earnings ratio of 16.89 indicates a correct valuation of SWK.
Based on the Price/Earnings ratio, SWK is valued a bit cheaper than the industry average as 77.34% of the companies are valued more expensively.
SWK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.16, the valuation of SWK can be described as correct.
SWK's Price/Forward Earnings ratio is rather cheap when compared to the industry. SWK is cheaper than 85.16% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SWK to the average of the S&P500 Index (22.86), we can say SWK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 13.16 |
4.2 Price Multiples
SWK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SWK is cheaper than 72.66% 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 | 28.69 | ||
| EV/EBITDA | 11.42 |
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)2.48
PEG (5Y)N/A
EPS Next 2Y15.58%
EPS Next 3Y16.13%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 4.18%, which is a nice return.
SWK's Dividend Yield is rather good when compared to the industry average which is at 1.73. SWK pays more dividend than 97.66% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SWK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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 2Y15.58%
EPS Next 3Y16.13%
76.67
-2.7 (-3.4%)
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 Change2.64%
Market Cap11.87B
Analysts69.17
Price Target90.08 (17.49%)
Short Float %3.59%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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)0.35%
PT rev (3m)3.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.56%
EPS NY rev (1m)3.7%
EPS NY rev (3m)7.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.61%
Revenue NY rev (1m)-1.94%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 13.16 | ||
| P/S | 0.78 | ||
| P/FCF | 28.69 | ||
| P/OCF | 15.63 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.42 |
EPS(TTM)4.54
EY5.92%
EPS(NY)5.82
Fwd EY7.6%
FCF(TTM)2.67
FCFY3.49%
OCF(TTM)4.9
OCFY6.4%
SpS97.95
BVpS58.55
TBVpS-17.26
PEG (NY)2.48
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 | 1.9 |
F-Score6
WACC9.52%
ROIC/WACC0.48
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%