STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - NYSE:SWK - US8545021011 - Common Stock
64.43 USD
-5.29 (-7.59%)
63.8 USD
-0.63 (-0.98%)
SWK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Machinery industry. Both the profitability and financial health of SWK have multiple concerns. SWK has a correct valuation and a medium growth rate. Finally SWK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SWK was profitable.
SWK had a positive operating cash flow in the past year.
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
SWK has a Return On Assets (2.13%) which is comparable to the rest of the industry.
SWK has a Return On Equity of 5.28%. This is comparable to the rest of the industry: SWK outperforms 40.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.60%, SWK is doing worse than 62.02% of the companies in the same industry.
SWK had an Average Return On Invested Capital over the past 3 years of 3.22%. This is significantly below the industry average of 10.04%.
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 (3.15%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SWK has declined.
SWK has a Operating Margin (6.51%) which is comparable to the rest of the industry.
SWK's Operating Margin has declined in the last couple of years.
SWK has a Gross Margin (29.88%) 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 | 6.51% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWK is destroying value.
Compared to 1 year ago, SWK has more shares outstanding
The number of shares outstanding for SWK remains at a similar level compared to 5 years ago.
SWK has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that SWK is in the distress zone and has some risk of bankruptcy.
SWK has a worse Altman-Z score (1.80) than 71.32% 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.
Looking at the Debt to FCF ratio, with a value of 16.14, SWK is doing worse than 65.89% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that SWK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, SWK is doing worse than 63.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 16.14 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.51
WACC9.05%
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.
The Current ratio of SWK (1.04) is worse than 87.60% of its industry peers.
A Quick Ratio of 0.34 indicates that SWK may have some problems paying its short term obligations.
With a Quick ratio value of 0.34, SWK is not doing good in the industry: 93.02% 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
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.
SWK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.27% yearly.
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 17.76% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.40% on average over the next years.
EPS Next Y7.02%
EPS Next 2Y15.47%
EPS Next 3Y15.8%
EPS Next 5Y17.76%
Revenue Next Year0.19%
Revenue Next 2Y2.09%
Revenue Next 3Y2.72%
Revenue Next 5Y4.4%
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
With a Price/Earnings ratio of 14.19, SWK is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of SWK indicates a rather cheap valuation: SWK is cheaper than 82.95% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. SWK is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.08, the valuation of SWK can be described as reasonable.
SWK's Price/Forward Earnings ratio is rather cheap when compared to the industry. SWK is cheaper than 90.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SWK to the average of the S&P500 Index (22.57), we can say SWK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 11.08 |
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 78.29% 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 | 24.11 | ||
| EV/EBITDA | 9.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SWK's earnings are expected to grow with 15.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.02
PEG (5Y)N/A
EPS Next 2Y15.47%
EPS Next 3Y15.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.76%, SWK is a good candidate for dividend investing.
SWK's Dividend Yield is rather good when compared to the industry average which is at 1.80. SWK pays more dividend than 98.45% of the companies in the same industry.
SWK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
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.
The dividend of SWK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP103.72%
EPS Next 2Y15.47%
EPS Next 3Y15.8%
64.43
-5.29 (-7.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.48%
Inst Owner Change-0.15%
Ins Owners0.35%
Ins Owner Change2.26%
Market Cap9.97B
Analysts69.17
Price Target89.16 (38.38%)
Short Float %3.33%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
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)-1.02%
PT rev (3m)2.32%
EPS NQ rev (1m)0.75%
EPS NQ rev (3m)-38.79%
EPS NY rev (1m)0.19%
EPS NY rev (3m)3.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.25%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 11.08 | ||
| P/S | 0.66 | ||
| P/FCF | 24.11 | ||
| P/OCF | 13.14 | ||
| P/B | 1.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.91 |
EPS(TTM)4.54
EY7.05%
EPS(NY)5.81
Fwd EY9.02%
FCF(TTM)2.67
FCFY4.15%
OCF(TTM)4.9
OCFY7.61%
SpS97.95
BVpS58.55
TBVpS-17.26
PEG (NY)2.02
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 | 1.8 |
F-Score6
WACC9.05%
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 Y7.02%
EPS Next 2Y15.47%
EPS Next 3Y15.8%
EPS Next 5Y17.76%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-1.97%
Revenue Next Year0.19%
Revenue Next 2Y2.09%
Revenue Next 3Y2.72%
Revenue Next 5Y4.4%
EBIT growth 1Y23.8%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year24.45%
EBIT Next 3Y15.48%
EBIT Next 5Y5.79%
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%