STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
NYSE:SWK - New York Stock Exchange, Inc. - US8545021011 - Common Stock - Currency: USD
Overall SWK gets a fundamental rating of 4 out of 10. We evaluated SWK against 128 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
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.
SWK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SWK has a Return On Assets of 1.62%. This is in the lower half of the industry: SWK underperforms 60.94% of its industry peers.
Looking at the Return On Equity, with a value of 4.13%, SWK is doing worse than 60.16% of the companies in the same industry.
SWK has a Return On Invested Capital of 4.32%. This is in the lower half of the industry: SWK underperforms 61.72% 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 10.31%.
The last Return On Invested Capital (4.32%) for SWK is above the 3 year average (3.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 4.13% | ||
| ROIC | 4.32% |
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 (2.40%) which is in line with its industry peers.
SWK's Profit Margin has declined in the last couple of years.
SWK has a Operating Margin (6.20%) which is in line with its industry peers.
SWK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 30.30%, SWK is in line with its industry, outperforming 49.22% of the companies in the same industry.
In the last couple of years the Gross Margin of SWK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.2% | ||
| PM (TTM) | 2.4% | ||
| GM | 30.3% |
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.
Compared to 1 year ago, SWK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.85 indicates that SWK is not a great score, but indicates only limited risk for bankruptcy at the moment.
SWK has a worse Altman-Z score (1.85) than 71.09% of its industry peers.
The Debt to FCF ratio of SWK is 8.81, which is on the high side as it means it would take SWK, 8.81 years of fcf income to pay off all of its debts.
SWK's Debt to FCF ratio of 8.81 is in line compared to the rest of the industry. SWK outperforms 42.19% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that SWK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, SWK is not doing good in the industry: 64.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.81 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.44
WACC9.84%
2.3 Liquidity
A Current Ratio of 1.10 indicates that SWK should not have too much problems paying its short term obligations.
The Current ratio of SWK (1.10) is worse than 87.50% of its industry peers.
SWK has a Quick Ratio of 1.10. 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 0.36 is on the low side compared to the rest of the industry. SWK is outperformed by 91.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 88.02% over the past year.
The earnings per share for SWK have been decreasing by -12.27% on average. This is quite bad
Looking at the last year, SWK shows a decrease in Revenue. The Revenue has decreased by -3.04% 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)88.02%
EPS 3Y-27.43%
EPS 5Y-12.27%
EPS Q2Q%33.93%
Revenue 1Y (TTM)-3.04%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-3.23%
3.2 Future
Based on estimates for the next years, SWK will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.39% on average per year.
The Revenue is expected to grow by 3.45% on average over the next years.
EPS Next Y-0.79%
EPS Next 2Y15.05%
EPS Next 3Y17.39%
EPS Next 5YN/A
Revenue Next Year2.43%
Revenue Next 2Y3.44%
Revenue Next 3Y3.45%
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
The Price/Earnings ratio is 15.50, which indicates a correct valuation of SWK.
Compared to the rest of the industry, the Price/Earnings ratio of SWK indicates a somewhat cheap valuation: SWK is cheaper than 78.13% of the companies listed in the same industry.
SWK is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.22, which indicates a correct valuation of SWK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SWK indicates a rather cheap valuation: SWK is cheaper than 81.25% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, SWK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 12.22 |
4.2 Price Multiples
SWK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SWK is cheaper than 69.53% of the companies in the same industry.
80.47% of the companies in the same industry are more expensive than SWK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.26 | ||
| EV/EBITDA | 10.63 |
4.3 Compensation for Growth
SWK's earnings are expected to grow with 17.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y15.05%
EPS Next 3Y17.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.64%, SWK is a good candidate for dividend investing.
SWK's Dividend Yield is rather good when compared to the industry average which is at 1.83. SWK pays more dividend than 98.44% of the companies in the same industry.
SWK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
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
135.24% 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.
DP135.24%
EPS Next 2Y15.05%
EPS Next 3Y17.39%
70.54
-0.08 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.42%
Inst Owner Change6%
Ins Owners0.24%
Ins Owner Change3.86%
Market Cap10.90B
Analysts68
Price Target87.6 (24.18%)
Short Float %5.61%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
Yearly Dividend3.2
Dividend Growth(5Y)3.92%
DP135.24%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.14%
Min EPS beat(2)12.45%
Max EPS beat(2)15.84%
EPS beat(4)4
Avg EPS beat(4)18.13%
Min EPS beat(4)12.45%
Max EPS beat(4)28.75%
EPS beat(8)8
Avg EPS beat(8)23.29%
EPS beat(12)11
Avg EPS beat(12)24.11%
EPS beat(16)15
Avg EPS beat(16)21.57%
Revenue beat(2)2
Avg Revenue beat(2)1.76%
Min Revenue beat(2)0.58%
Max Revenue beat(2)2.95%
Revenue beat(4)2
Avg Revenue beat(4)0.1%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)2.95%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
Revenue beat(12)5
Avg Revenue beat(12)-0.96%
Revenue beat(16)5
Avg Revenue beat(16)-3.26%
PT rev (1m)-14.87%
PT rev (3m)-16.03%
EPS NQ rev (1m)-63.75%
EPS NQ rev (3m)-64.82%
EPS NY rev (1m)-14.77%
EPS NY rev (3m)-17.97%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)1.75%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.5 | ||
| Fwd PE | 12.22 | ||
| P/S | 0.72 | ||
| P/FCF | 14.26 | ||
| P/OCF | 9.75 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.63 |
EPS(TTM)4.55
EY6.45%
EPS(NY)5.77
Fwd EY8.18%
FCF(TTM)4.95
FCFY7.01%
OCF(TTM)7.23
OCFY10.25%
SpS98.62
BVpS57.21
TBVpS-18.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.62% | ||
| ROE | 4.13% | ||
| ROCE | 5.85% | ||
| ROIC | 4.32% | ||
| ROICexc | 4.41% | ||
| ROICexgc | 14.11% | ||
| OM | 6.2% | ||
| PM (TTM) | 2.4% | ||
| GM | 30.3% | ||
| FCFM | 5.02% |
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-Score8
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 8.81 | ||
| Debt/EBITDA | 3.87 | ||
| Cap/Depr | 61.14% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.44% | ||
| Profit Quality | 209.39% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.36 | ||
| Altman-Z | 1.85 |
F-Score8
WACC9.84%
ROIC/WACC0.44
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)88.02%
EPS 3Y-27.43%
EPS 5Y-12.27%
EPS Q2Q%33.93%
EPS Next Y-0.79%
EPS Next 2Y15.05%
EPS Next 3Y17.39%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.04%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-3.23%
Revenue Next Year2.43%
Revenue Next 2Y3.44%
Revenue Next 3Y3.45%
Revenue Next 5YN/A
EBIT growth 1Y26.78%
EBIT growth 3Y-22.72%
EBIT growth 5Y-12.18%
EBIT Next Year31.22%
EBIT Next 3Y18.11%
EBIT Next 5YN/A
FCF growth 1Y179.37%
FCF growth 3Y73.57%
FCF growth 5Y-6.98%
OCF growth 1Y321.5%
OCF growth 3Y18.63%
OCF growth 5Y-5.97%