NYSE:SWK

Stock Analysis Report

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Executive Summary

Stanley Black & Decker, Inc. engages in tools and storage, industrial, and security businesses worldwide. More Details

Rewards

PE ratio (29.1x) is below the Machinery industry average (29.3x)

Earnings are forecast to grow 15.92% per year

Earnings grew by 46.4% over the past year

Pays a reliable dividend of 1.54%

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Stanley Black & Decker's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SWK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SWK's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-4.6%

SWK

-3.2%

US Machinery

0.6%

US Market


1 Year Return

19.8%

SWK

20.7%

US Machinery

22.7%

US Market

Return vs Industry: SWK matched the US Machinery industry which returned 19.3% over the past year.

Return vs Market: SWK underperformed the US Market which returned 21% over the past year.


Shareholder returns

SWKIndustryMarket
7 Day-4.6%-3.2%0.6%
30 Day9.5%14.1%13.1%
90 Day9.4%11.2%4.5%
1 Year22.1%19.8%23.9%20.7%25.5%22.7%
3 Year14.3%8.1%31.7%22.2%49.0%39.1%
5 Year82.7%66.4%130.4%104.7%98.3%76.5%

Long-Term Price Volatility Vs. Market

How volatile is Stanley Black & Decker's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Stanley Black & Decker undervalued compared to its fair value and its price relative to the market?

29.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SWK ($181.92) is trading above our estimate of fair value ($115.72)

Significantly Below Fair Value: SWK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SWK is good value based on its PE Ratio (29.1x) compared to the US Machinery industry average (29.3x).

PE vs Market: SWK is poor value based on its PE Ratio (29.1x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: SWK is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: SWK is overvalued based on its PB Ratio (3.3x) compared to the US Machinery industry average (2.7x).


Next Steps

Future Growth

How is Stanley Black & Decker forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

15.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWK's forecast earnings growth (15.9% per year) is above the savings rate (2.2%).

Earnings vs Market: SWK's earnings (15.9% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: SWK's earnings are forecast to grow, but not significantly.

Revenue vs Market: SWK's revenue (5.1% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: SWK's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SWK's Return on Equity is forecast to be low in 3 years time (14.9%).


Next Steps

Past Performance

How has Stanley Black & Decker performed over the past 5 years?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWK has a large one-off loss of $500.3M impacting its September 26 2020 financial results.

Growing Profit Margin: SWK's current net profit margins (6.9%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: SWK's earnings have declined by 4.6% per year over the past 5 years.

Accelerating Growth: SWK's earnings growth over the past year (46.4%) exceeds its 5-year average (-4.6% per year).

Earnings vs Industry: SWK earnings growth over the past year (46.4%) exceeded the Machinery industry -15.4%.


Return on Equity

High ROE: SWK's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is Stanley Black & Decker's financial position?


Financial Position Analysis

Short Term Liabilities: SWK's short term assets ($5.8B) exceed its short term liabilities ($4.2B).

Long Term Liabilities: SWK's short term assets ($5.8B) do not cover its long term liabilities ($8.4B).


Debt to Equity History and Analysis

Debt Level: SWK's debt to equity ratio (46%) is considered high.

Reducing Debt: SWK's debt to equity ratio has reduced from 75.9% to 46% over the past 5 years.

Debt Coverage: SWK's debt is well covered by operating cash flow (38.6%).

Interest Coverage: SWK's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet


Next Steps

Dividend

What is Stanley Black & Decker current dividend yield, its reliability and sustainability?

1.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SWK's dividend (1.54%) is higher than the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: SWK's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (4.18%).


Stability and Growth of Payments

Stable Dividend: SWK's dividends per share have been stable in the past 10 years.

Growing Dividend: SWK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.3%), SWK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SWK's dividends in 3 years are forecast to be well covered by earnings (27.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.7yrs

Average management tenure


CEO

Jim Loree (62 yo)

4.25yrs

Tenure

US$18,687,549

Compensation

Mr. James M. Loree, also known as Jim, has been the Chief Executive Officer of Stanley Black & Decker, Inc. since July 31, 2016. Mr. Loree has been the President of Stanley Black & Decker, Inc. since Janua...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD18.69M) is above average for companies of similar size in the US market ($USD10.98M).

Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Loree
President4.25yrsUS$18.69m0.071%
$ 20.6m
Donald Allan
Executive VP & CFO11.83yrsUS$4.02m0.042%
$ 12.3m
Janet Link
Senior VP3.33yrsUS$2.95m0.0036%
$ 1.0m
John H. Wyatt
President of Outdoor & Aerospace5.83yrsUS$2.71m0.0059%
$ 1.7m
Jocelyn Belisle
VP & Chief Accounting Officer11.33yrsno data0.0051%
$ 1.5m
Mark Maybury
Chief Technology Officer3yrsno datano data
Rhonda Gass
VP & Chief Information Officer8.08yrsno datano data
Dennis Lange
Vice President of Investor Relationsno datano datano data
Shannon Lapierre
VP & Chief Communications Officerno datano datano data
Joseph Voelker
Senior VP & Chief Human Resources Officer7.58yrsno data0.0042%
$ 1.2m
Jaime Ramirez
Executive VP and President of the Tools & Storage8.08yrsUS$2.80m0.0083%
$ 2.4m
Lee McChesney
Chief Finance Officer of Global Tools & Storage5.83yrsno datano data

6.7yrs

Average Tenure

56yo

Average Age

Experienced Management: SWK's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Loree
President4.25yrsUS$18.69m0.071%
$ 20.6m
George Buckley
Independent Chairman of the Board3.83yrsUS$506.77k0.0096%
$ 2.8m
Robert Coutts
Independent Director13.33yrsUS$314.80kno data
Michael Hankin
Independent Director4.58yrsUS$325.58k0.0014%
$ 393.5k
Carlos Cardoso
Independent Director13.08yrsUS$330.00kno data
Patrick Campbell
Independent Director12.08yrsUS$307.19kno data
Dmitri Stockton
Independent Director2.33yrsUS$305.00kno data
Andrea Ayers
Independent Director5.92yrsUS$312.50kno data
Debra Crew
Independent Director6.92yrsUS$305.00kno data
Tiang Yew Tan
Director0.75yrno datano data

5.3yrs

Average Tenure

62yo

Average Age

Experienced Board: SWK's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SWK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.


Top Shareholders

Company Information

Stanley Black & Decker, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Stanley Black & Decker, Inc.
  • Ticker: SWK
  • Exchange: NYSE
  • Founded: 1843
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$29.148b
  • Shares outstanding: 160.22m
  • Website: https://www.stanleyblackanddecker.com

Number of Employees


Location

  • Stanley Black & Decker, Inc.
  • 1000 Stanley Drive
  • New Britain
  • Connecticut
  • 6053
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWKNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
SWFDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0L9ELSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
SWKWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
SWK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
SWKBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJan 1968
S1WK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020
BKDK.POTCPK (Pink Sheets LLC)5% PFD CNV CUSUSDMay 2020

Biography

Stanley Black & Decker, Inc. engages in tools and storage, industrial, and security businesses worldwide. Its Tools & Storage segment offers power tools and equipment, including professional products, such...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 00:04
End of Day Share Price2020/12/01 00:00
Earnings2020/09/26
Annual Earnings2019/12/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.