Stanley Black & Decker
Market Cap
US$16.5b
Last Updated
2020/04/08 08:23 UTC
Data Sources
Company Financials +
Executive Summary
Stanley Black & Decker, Inc. engages in tools and storage, industrial, and security businesses worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet established dividend payer.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
16.6%
SWK
2.9%
US Machinery
2.4%
US Market
1 Year Return
-24.6%
SWK
-19.5%
US Machinery
-10.0%
US Market
Return vs Industry: SWK underperformed the US Machinery industry which returned -19.5% over the past year.
Return vs Market: SWK underperformed the US Market which returned -10% over the past year.
Shareholder returns
| SWK | Industry | Market | |
|---|---|---|---|
| 7 Day | 16.6% | 2.9% | 2.4% |
| 30 Day | -10.5% | -13.4% | -11.0% |
| 90 Day | -35.0% | -26.7% | -19.4% |
| 1 Year | -23.1%-24.6% | -17.2%-19.5% | -8.1%-10.0% |
| 3 Year | -14.2%-18.8% | 2.3%-5.2% | 17.3%9.6% |
| 5 Year | 21.9%10.7% | 25.6%9.6% | 36.1%21.1% |
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
2 weeks ago | Simply Wall St
Did Stanley Black & Decker, Inc. (NYSE:SWK) Use Debt To Deliver Its ROE Of 10%?3 weeks ago | Simply Wall St
What Is Stanley Black & Decker's (NYSE:SWK) P/E Ratio After Its Share Price Tanked?4 weeks ago | Simply Wall St
Is It Time To Consider Buying Stanley Black & Decker, Inc. (NYSE:SWK)?Valuation
Is Stanley Black & Decker undervalued compared to its fair value and its price relative to the market?
36.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SWK ($107.4) is trading below our estimate of fair value ($169.74)
Significantly Below Fair Value: SWK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SWK is poor value based on its PE Ratio (16.7x) compared to the Machinery industry average (15.4x).
PE vs Market: SWK is poor value based on its PE Ratio (16.7x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: SWK is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: SWK is overvalued based on its PB Ratio (2.2x) compared to the US Machinery industry average (1.6x).
Next Steps
Future Growth
How is Stanley Black & Decker forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
13.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SWK's forecast earnings growth (13.7% per year) is above the savings rate (1.7%).
Earnings vs Market: SWK's earnings (13.7% per year) are forecast to grow faster than the US market (13.3% per year).
High Growth Earnings: SWK's earnings are forecast to grow, but not significantly.
Revenue vs Market: SWK's revenue (2.8% per year) is forecast to grow slower than the US market (7% per year).
High Growth Revenue: SWK's revenue (2.8% 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 (13.9%).
Next Steps
Past Performance
How has Stanley Black & Decker performed over the past 5 years?
-2.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SWK has a large one-off loss of $364.4M impacting its December 28 2019 financial results.
Growing Profit Margin: SWK's current net profit margins (6.6%) are higher than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: SWK's earnings have declined by -2.7% per year over the past 5 years.
Accelerating Growth: SWK's earnings growth over the past year (56.8%) exceeds its 5-year average (-2.7% per year).
Earnings vs Industry: SWK earnings growth over the past year (56.8%) exceeded the Machinery industry -1.3%.
Return on Equity
High ROE: SWK's Return on Equity (10.5%) 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 ($4.5B) exceed its short term liabilities ($4.4B).
Long Term Liabilities: SWK's short term assets ($4.5B) do not cover its long term liabilities ($7.0B).
Debt to Equity History and Analysis
Debt Level: SWK's debt to equity ratio (38.9%) is considered satisfactory.
Reducing Debt: SWK's debt to equity ratio has reduced from 60% to 38.9% over the past 5 years.
Debt Coverage: SWK's debt is well covered by operating cash flow (42.3%).
Interest Coverage: SWK's interest payments on its debt are well covered by EBIT (7.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Stanley Black & Decker's current dividend yield, its reliability and sustainability?
2.57%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SWK's dividend (2.57%) is higher than the bottom 25% of dividend payers in the US market (1.93%).
High Dividend: SWK's dividend (2.57%) is low compared to the top 25% of dividend payers in the US market (5.46%).
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 (41.9%), 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 (31% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.4yrs
Average management tenure
CEO
Jim Loree (61yo)
3.67s
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 ($USD11.79M).
Compensation vs Earnings: Jim's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.67yrs | US$18.69m | 0.073% $12.1m | |
| Executive VP & CFO | 11.25yrs | US$4.02m | 0.056% $9.3m | |
| Senior VP | 2.75yrs | US$2.95m | 0.0038% $625.3k | |
| Executive VP and President of Tools & Storage | 16.25yrs | US$4.03m | 0.015% $2.6m | |
| President of Outdoor & Aerospace | 5.25yrs | US$2.71m | 0.021% $3.5m | |
| VP & Chief Accounting Officer | 10.75yrs | no data | 0.0073% $1.2m | |
| Chief Technology Officer | 2.42yrs | no data | no data | |
| VP & Chief Information Officer | 7.5yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| VP & Chief Communications Officer | no data | no data | no data |
6.4yrs
Average Tenure
55yo
Average Age
Experienced Management: SWK's management team is seasoned and experienced (6.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.67yrs | US$18.69m | 0.073% $12.1m | |
| Independent Chairman of the Board | 3.25yrs | US$506.77k | 0.010% $1.6m | |
| Independent Director | 12.75yrs | US$314.80k | no data | |
| Independent Director | 4yrs | US$325.58k | 0.0014% $231.6k | |
| Independent Director | 12.5yrs | US$330.00k | no data | |
| Independent Director | 11.5yrs | US$307.19k | no data | |
| Independent Director | 1.75yrs | US$305.00k | no data | |
| Independent Director | 5.33yrs | US$312.50k | no data | |
| Independent Director | 6.33yrs | US$305.00k | no data | |
| Independent Director | 2.5yrs | US$292.43k | no data |
4.7yrs
Average Tenure
61yo
Average Age
Experienced Board: SWK's board of directors are considered experienced (4.7 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 not been meaningfully diluted in the past year.
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$16.542b
- Shares outstanding: 154.03m
- Website: https://www.stanleyblackanddecker.com
Number of Employees
Location
- Stanley Black & Decker, Inc.
- 1000 Stanley Drive
- New Britain
- Connecticut
- 6053
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SWK | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| SWF | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| 0L9E | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| SWFCHF | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Jan 1968 |
| SWK | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1968 |
| SWK * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| S1WK34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 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 as professional grade corded and cordless electric power tools and equipment, and pneumatic tools and fasteners; and consumer products comprising corded and cordless electric power tools primarily under the BLACK+DECKER brand, as well as lawn and garden products and related accessories, and home products. This segment sells its products through retailers, distributors, and a direct sales force to professional end users, distributors, retail consumers, and industrial customers in various industries. The company’s Industrial segment provides engineered fastening products and systems to customers in the automotive, manufacturing, electronics, construction, aerospace industries, and others; sells and rents custom pipe handling, joint welding, and coating equipment for use in the construction of large and small diameter pipelines, as well as provides pipeline inspection services; and sells hydraulic tools, attachments, and accessories. This segment also serves oil and natural gas pipeline industry and other industrial customers. Its Security segment designs, supplies, and installs commercial electronic security systems and provides electronic security services; offers healthcare solutions, which include asset tracking, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products; and sells automatic doors to commercial customers. This segment serves consumers, retailers, educational, financial, and healthcare institutions, as well as commercial, governmental, and industrial customers. The company was formerly known as The Stanley Works and changed its name to Stanley Black & Decker, Inc. in March 2010. Stanley Black & Decker, Inc. was founded in 1843 and is headquartered in New Britain, Connecticut.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 08:23 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/28 |
| Annual Earnings | 2019/12/28 |
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.