STANLEY BLACK & DECKER INC (SWK)
US8545021011 - Common Stock
Overall SWK gets a fundamental rating of 3 out of 10. We evaluated SWK against 131 industry peers in the Machinery industry. Both the profitability and financial health of SWK have multiple concerns. SWK is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SWK had positive earnings in the past year.
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
The Return On Assets of SWK (-1.31%) is worse than 71.32% of its industry peers.
SWK's Return On Equity of -3.43% is on the low side compared to the rest of the industry. SWK is outperformed by 70.54% of its industry peers.
The Return On Invested Capital of SWK (2.38%) is worse than 68.99% 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 10.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.31% | ||
| ROE | -3.43% | ||
| ROIC | 2.38% |
ROA(3y)2.96%
ROA(5y)3.73%
ROE(3y)7.31%
ROE(5y)8.67%
ROIC(3y)4.2%
ROIC(5y)5.76%
1.3 Margins
The Operating Margin of SWK (3.60%) is worse than 67.44% of its industry peers.
In the last couple of years the Operating Margin of SWK has declined.
Looking at the Gross Margin, with a value of 25.98%, SWK is in line with its industry, outperforming 42.64% of the companies in the same industry.
SWK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.6% | ||
| PM (TTM) | N/A | ||
| GM | 25.98% |
OM growth 3Y-41.13%
OM growth 5Y-26.46%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.17%
GM growth 5Y-5.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWK is destroying value.
SWK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SWK has more shares outstanding
Compared to 1 year ago, SWK has a worse debt to assets ratio.
2.2 Solvency
SWK has a debt to FCF ratio of 8.42. This is a slightly negative value and a sign of low solvency as SWK would need 8.42 years to pay back of all of its debts.
SWK has a Debt to FCF ratio (8.42) which is in line with its industry peers.
A Debt/Equity ratio of 0.79 indicates that SWK is somewhat dependend on debt financing.
SWK's Debt to Equity ratio of 0.79 is on the low side compared to the rest of the industry. SWK is outperformed by 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 8.42 | ||
| Altman-Z | N/A |
ROIC/WACC0.28
WACC8.59%
2.3 Liquidity
A Current Ratio of 1.19 indicates that SWK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.19, SWK is not doing good in the industry: 84.50% of the companies in the same industry are doing better.
SWK has a Quick Ratio of 1.19. 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 0.39 is on the low side compared to the rest of the industry. SWK is outperformed by 95.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The earnings per share for SWK have decreased strongly by -67.99% in the last year.
SWK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -29.20% yearly.
The Revenue has decreased by -6.88% in the past year.
SWK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.45% yearly.
EPS 1Y (TTM)-67.99%
EPS 3Y-45.55%
EPS 5Y-29.2%
EPS growth Q2Q1020%
Revenue 1Y (TTM)-6.88%
Revenue growth 3Y2.78%
Revenue growth 5Y2.45%
Revenue growth Q2Q-6.28%
3.2 Future
The Earnings Per Share is expected to grow by 70.63% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.88% on average over the next years.
EPS Next Y187.63%
EPS Next 2Y99.93%
EPS Next 3Y70.63%
EPS Next 5YN/A
Revenue Next Year-2%
Revenue Next 2Y0.57%
Revenue Next 3Y1.88%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 61.60, SWK can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SWK is valued a bit more expensive than the industry average as 69.77% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 24.76, SWK is valued quite expensively.
SWK is valuated rather expensively with a Price/Forward Earnings ratio of 21.42.
The rest of the industry has a similar Price/Forward Earnings ratio as SWK.
When comparing the Price/Forward Earnings ratio of SWK to the average of the S&P500 Index (21.26), we can say SWK is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.6 | ||
| Fwd PE | 21.42 |
4.2 Price Multiples
SWK's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SWK is valued a bit cheaper than 75.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.11 | ||
| EV/EBITDA | 16.26 |
4.3 Compensation for Growth
SWK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SWK's earnings are expected to grow with 70.63% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y99.93%
EPS Next 3Y70.63%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 3.47%.
Compared to an average industry Dividend Yield of 1.66, SWK pays a better dividend. On top of this SWK pays more dividend than 95.35% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SWK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
The dividend of SWK has a limited annual growth rate of 5.92%.
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)5.92%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
SWK has negative earnings and hence a negative payout ratio. The dividend may be in danger.
SWK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-155.43%
EPS Next 2Y99.93%
EPS Next 3Y70.63%
STANLEY BLACK & DECKER INC
NYSE:SWK (4/19/2024, 7:18:20 PM)
After market: 89.32 0 (0%)89.32
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.6 | ||
| Fwd PE | 21.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.31% | ||
| ROE | -3.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.6% | ||
| PM (TTM) | N/A | ||
| GM | 25.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-67.99%
EPS 3Y-45.55%
EPS 5Y
EPS growth Q2Q
EPS Next Y187.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.88%
Revenue growth 3Y2.78%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y