STANLEY BLACK & DECKER INC (SWK) Stock Fundamental Analysis
USA - NYSE:SWK - US8545021011 - Common Stock
67.72 USD
-0.86 (-1.25%)
68.42 USD
+0.7 (+1.03%)
Overall SWK gets a fundamental rating of 4 out of 10. We evaluated SWK against 130 industry peers in the Machinery industry. SWK may be in some trouble as it scores bad on both profitability and health. SWK has a correct valuation and a medium growth rate. SWK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SWK was profitable.
In the past year SWK had a positive cash flow from operations.
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
SWK's Return On Assets of 2.13% is in line compared to the rest of the industry. SWK outperforms 40.77% of its industry peers.
Looking at the Return On Equity, with a value of 5.28%, SWK is doing worse than 60.00% of the companies in the same industry.
SWK has a worse Return On Invested Capital (4.60%) than 61.54% 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 10.00%.
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 (3.15%) which is comparable to the rest of the industry.
SWK's Profit Margin has declined in the last couple of years.
SWK has a Operating Margin (6.51%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SWK has declined.
With a Gross Margin value of 29.88%, SWK perfoms like the industry average, outperforming 46.15% 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 | 6.51% | ||
| 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.
The debt/assets ratio for SWK has been reduced compared to a year ago.
2.2 Solvency
SWK has an Altman-Z score of 1.82. This is not the best score and indicates that SWK is in the grey zone with still only limited risk for bankruptcy at the moment.
SWK's Altman-Z score of 1.82 is on the low side compared to the rest of the industry. SWK is outperformed by 69.23% 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 65.38% of the companies in the same industry.
SWK has a Debt/Equity ratio of 0.64. This is a neutral value indicating SWK is somewhat dependend on debt financing.
The Debt to Equity ratio of SWK (0.64) is worse than 63.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 16.14 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.51
WACC9.04%
2.3 Liquidity
A Current Ratio of 1.04 indicates that SWK should not have too much problems paying its short term obligations.
SWK has a Current ratio of 1.04. This is amonst the worse of the industry: SWK underperforms 86.92% of its industry peers.
SWK has a Quick Ratio of 1.04. This is a bad value and indicates that SWK is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.34, SWK is doing worse than 93.08% of the companies in the same industry.
| 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.
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 -2.71% in the last year.
SWK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.25% yearly.
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.
SWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.40% yearly.
EPS Next Y6.79%
EPS Next 2Y15.5%
EPS Next 3Y15.21%
EPS Next 5Y17.76%
Revenue Next Year0.24%
Revenue Next 2Y1.93%
Revenue Next 3Y2.55%
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
SWK is valuated correctly with a Price/Earnings ratio of 14.92.
Based on the Price/Earnings ratio, SWK is valued cheaper than 82.31% of the companies in the same industry.
SWK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.10.
A Price/Forward Earnings ratio of 11.64 indicates a reasonable valuation of SWK.
Based on the Price/Forward Earnings ratio, SWK is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
SWK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWK is valued a bit cheaper than the industry average as 73.85% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SWK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.34 | ||
| EV/EBITDA | 10.24 |
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.
A more expensive valuation may be justified as SWK's earnings are expected to grow with 15.21% in the coming years.
PEG (NY)2.2
PEG (5Y)N/A
EPS Next 2Y15.5%
EPS Next 3Y15.21%
5. Dividend
5.1 Amount
SWK has a Yearly Dividend Yield of 4.84%, which is a nice return.
Compared to an average industry Dividend Yield of 1.81, SWK pays a better dividend. On top of this SWK pays more dividend than 97.69% 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.84% |
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 2Y15.5%
EPS Next 3Y15.21%
67.72
-0.86 (-1.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.48%
Inst Owner Change-0.08%
Ins Owners0.35%
Ins Owner Change0.96%
Market Cap10.48B
Revenue(TTM)15.16B
Net Income(TTM)478.30M
Analysts69.17
Price Target88.38 (30.51%)
Short Float %3.3%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.84% |
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)-1.89%
PT rev (3m)-0.85%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-8.06%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)3.68%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.92 | ||
| Fwd PE | 11.64 | ||
| P/S | 0.69 | ||
| P/FCF | 25.34 | ||
| P/OCF | 13.81 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.24 |
EPS(TTM)4.54
EY6.7%
EPS(NY)5.82
Fwd EY8.59%
FCF(TTM)2.67
FCFY3.95%
OCF(TTM)4.9
OCFY7.24%
SpS97.95
BVpS58.55
TBVpS-17.26
PEG (NY)2.2
PEG (5Y)N/A
Graham Number77.34
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%
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-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 | 1.82 |
F-Score6
WACC9.04%
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 Y6.79%
EPS Next 2Y15.5%
EPS Next 3Y15.21%
EPS Next 5Y17.76%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y0.18%
Revenue growth 5Y1.25%
Sales Q2Q%-1.97%
Revenue Next Year0.24%
Revenue Next 2Y1.93%
Revenue Next 3Y2.55%
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%
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 14.92 and the Price/Book (PB) ratio is 1.16.
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.