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STANLEY BLACK & DECKER I - SWK 5 1/4 11/15/22 (SWT) Stock Fundamental Analysis

NYSE:SWT - New York Stock Exchange, Inc. - US8545028461 - Currency: USD

51.06  -1.51 (-2.87%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to SWT. SWT was compared to 128 industry peers in the Machinery industry. SWT has a bad profitability rating. Also its financial health evaluation is rather negative. SWT has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

SWT had positive earnings in the past year.
In the past year SWT has reported a negative cash flow from operations.
SWT Yearly Net Income VS EBIT VS OCF VS FCFSWT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B

1.2 Ratios

Industry RankSector Rank
ROA 5.62%
ROE 15.04%
ROIC 4.97%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
SWT Yearly ROA, ROE, ROICSWT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 5 10 15

1.3 Margins

SWT's Profit Margin has improved in the last couple of years.
SWT's Operating Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.56%
PM (TTM) 8.43%
GM N/A
OM growth 3Y1.8%
OM growth 5Y0.3%
PM growth 3Y35.72%
PM growth 5Y5.31%
GM growth 3YN/A
GM growth 5YN/A
SWT Yearly Profit, Operating, Gross MarginsSWT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 10 20 30

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWT is destroying value.
Compared to 1 year ago, SWT has more shares outstanding
Compared to 1 year ago, SWT has a worse debt to assets ratio.
SWT Yearly Shares OutstandingSWT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 50M 100M 150M
SWT Yearly Total Debt VS Total AssetsSWT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 5B 10B 15B 20B 25B

2.2 Solvency

Based on the Altman-Z score of 1.70, we must say that SWT is in the distress zone and has some risk of bankruptcy.
A Debt/Equity ratio of 0.56 indicates that SWT is somewhat dependend on debt financing.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF N/A
Altman-Z 1.7
ROIC/WACC0.59
WACC8.39%
SWT Yearly LT Debt VS Equity VS FCFSWT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 1.16 indicates that SWT should not have too much problems paying its short term obligations.
A Quick Ratio of 0.32 indicates that SWT may have some problems paying its short term obligations.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 0.32
SWT Yearly Current Assets VS Current LiabilitesSWT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2B 4B 6B 8B

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2

3. Growth

3.1 Past

The earnings per share for SWT have decreased strongly by -42.46% in the last year.
SWT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.88% yearly.
SWT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.23%.
SWT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.14% yearly.
EPS 1Y (TTM)-42.46%
EPS 3Y11.87%
EPS 5Y11.88%
EPS Q2Q%-72.56%
Revenue 1Y (TTM)5.23%
Revenue growth 3Y3.76%
Revenue growth 5Y6.14%
Sales Q2Q%8.99%

3.2 Future

The Earnings Per Share is expected to grow by 1.59% on average over the next years.
SWT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.02% yearly.
EPS Next Y-51.99%
EPS Next 2Y-24.21%
EPS Next 3Y-10.2%
EPS Next 5Y1.59%
Revenue Next Year-2.46%
Revenue Next 2Y-2.93%
Revenue Next 3Y-0.3%
Revenue Next 5Y-0.02%

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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SWT Yearly Revenue VS EstimatesSWT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5B 10B 15B
SWT Yearly EPS VS EstimatesSWT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6 8 10

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.23, the valuation of SWT can be described as very cheap.
The average S&P500 Price/Earnings ratio is at 26.20. SWT is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.79, the valuation of SWT can be described as very cheap.
When comparing the Price/Forward Earnings ratio of SWT to the average of the S&P500 Index (22.13), we can say SWT is valued rather cheaply.
Industry RankSector Rank
PE 7.23
Fwd PE 7.79
SWT Price Earnings VS Forward Price EarningsSWT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.85
SWT Per share dataSWT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60 80 100

4.3 Compensation for Growth

SWT's earnings are expected to decrease with -10.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y-24.21%
EPS Next 3Y-10.2%

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3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.99%, SWT has a reasonable but not impressive dividend return.
SWT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
Industry RankSector Rank
Dividend Yield 3.99%

5.2 History

The dividend of SWT has a limited annual growth rate of 4.92%.
SWT does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)4.92%
Div Incr YearsN/A
Div Non Decr YearsN/A
SWT Yearly Dividends per shareSWT Yearly Dividends per shareYearly Dividends per share 2021 2022 1 2 3 4 5

5.3 Sustainability

32.94% of the earnings are spent on dividend by SWT. This is a low number and sustainable payout ratio.
SWT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP32.94%
EPS Next 2Y-24.21%
EPS Next 3Y-10.2%
SWT Yearly Income VS Free CF VS DividendSWT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 500M 1B 1.5B
SWT Dividend Payout.SWT Dividend Payout, showing the Payout Ratio.SWT Dividend Payout.PayoutRetained Earnings

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STANLEY BLACK & DECKER I - SWK 5 1/4 11/15/22

NYSE:SWT (11/14/2022, 8:04:00 PM)

51.06

-1.51 (-2.87%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-27 2022-10-27/bmo
Earnings (Next)01-30 2023-01-30
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap7.80B
Analysts66.4
Price Target61.91 (21.25%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.99%
Yearly Dividend2.98
Dividend Growth(5Y)4.92%
DP32.94%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.1%
Min EPS beat(2)-17.15%
Max EPS beat(2)6.96%
EPS beat(4)3
Avg EPS beat(4)7.39%
Min EPS beat(4)-17.15%
Max EPS beat(4)22.41%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.98%
Min Revenue beat(2)-8.46%
Max Revenue beat(2)2.5%
Revenue beat(4)1
Avg Revenue beat(4)-5.39%
Min Revenue beat(4)-10.49%
Max Revenue beat(4)2.5%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 7.23
Fwd PE 7.79
P/S 0.46
P/FCF N/A
P/OCF N/A
P/B 0.82
P/tB N/A
EV/EBITDA 6.85
EPS(TTM)7.06
EY13.83%
EPS(NY)6.55
Fwd EY12.84%
FCF(TTM)-15.3
FCFYN/A
OCF(TTM)-11.39
OCFYN/A
SpS111.54
BVpS62.53
TBVpS-26.6
PEG (NY)N/A
PEG (5Y)0.61
Profitability
Industry RankSector Rank
ROA 5.62%
ROE 15.04%
ROCE N/A
ROIC 4.97%
ROICexc 5.07%
ROICexgc 14.1%
OM 7.56%
PM (TTM) 8.43%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-23.49%
ROICexcg growth 5Y-14.36%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y1.8%
OM growth 5Y0.3%
PM growth 3Y35.72%
PM growth 5Y5.31%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.67
Health
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 104.36%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.16
Quick Ratio 0.32
Altman-Z 1.7
F-Score3
WACC8.39%
ROIC/WACC0.59
Cap/Depr(3y)75.33%
Cap/Depr(5y)83.83%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)85.75%
Profit Quality(5y)80.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-42.46%
EPS 3Y11.87%
EPS 5Y11.88%
EPS Q2Q%-72.56%
EPS Next Y-51.99%
EPS Next 2Y-24.21%
EPS Next 3Y-10.2%
EPS Next 5Y1.59%
Revenue 1Y (TTM)5.23%
Revenue growth 3Y3.76%
Revenue growth 5Y6.14%
Sales Q2Q%8.99%
Revenue Next Year-2.46%
Revenue Next 2Y-2.93%
Revenue Next 3Y-0.3%
Revenue Next 5Y-0.02%
EBIT growth 1Y-45.58%
EBIT growth 3Y5.62%
EBIT growth 5Y6.46%
EBIT Next Year-33.51%
EBIT Next 3Y-1.93%
EBIT Next 5Y2.81%
FCF growth 1Y-256.43%
FCF growth 3Y-42.78%
FCF growth 5Y-29.7%
OCF growth 1Y-194.31%
OCF growth 3Y-19.28%
OCF growth 5Y-10.97%