NYSE:SWK

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with imperfect 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


Market Performance


7 Day Return

6.8%

SWK

5.1%

US Machinery

2.3%

US Market


1 Year Return

19.3%

SWK

2.8%

US Machinery

5.6%

US Market

Return vs Industry: SWK exceeded the US Machinery industry which returned 2.8% over the past year.

Return vs Market: SWK exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

SWKIndustryMarket
7 Day6.8%5.1%2.3%
30 Day2.6%-2.1%-1.0%
90 Day3.4%-1.3%-0.7%
1 Year21.8%19.3%5.0%2.8%7.9%5.6%
3 Year30.3%23.2%46.5%37.0%45.6%36.3%
5 Year85.9%68.6%59.6%40.4%65.8%47.6%

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?

32.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SWK ($147.39) is trading above our estimate of fair value ($126.45)

Significantly Undervalued: SWK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SWK is poor value based on its PE Ratio (32.7x) compared to the Machinery industry average (19.9x).

PE vs Market: SWK is poor value based on its PE Ratio (32.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SWK is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: SWK is overvalued based on its PB Ratio (3x) compared to the US Machinery industry average (2.2x).


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?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWK's forecast earnings growth (12.8% per year) is above the savings rate (2.7%).

Earnings vs Market: SWK's earnings (12.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: SWK's revenue (4.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SWK's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SWK's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

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

1.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SWK's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: SWK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SWK had negative earnings growth (-34.6%) over the past year, making it difficult to compare to the Machinery industry average (18.7%).


Return on Equity

High ROE: SWK's Return on Equity (8.1%) is considered low.


Return on Assets

ROA vs Industry: SWK's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: SWK's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Stanley Black & Decker's financial position?


Financial Position Analysis

Short Term Liabilities: SWK's short term assets ($5.3B) do not cover its short term liabilities ($5.7B)

Long Term Liabilities: SWK's short term assets (5.3B) do not cover its long term liabilities (7.6B)


Debt to Equity History and Analysis

Debt Level: SWK's debt to equity ratio (65.6%) is considered high

Reducing Debt: SWK's debt to equity ratio has increased from 61.6% to 65.6% over the past 5 years.

Debt Coverage: SWK's debt is well covered by operating cash flow (27.4%).

Interest Coverage: SWK's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

Inventory Level: SWK has a high level of physical assets or inventory.

Debt Coverage by Assets: SWK's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

1.87%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SWK's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SWK's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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 reasonable payout ratio (58.5%), SWK's dividend payments are 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

What is the CEO of Stanley Black & Decker's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average management tenure


CEO

Jim Loree (61yo)

3.3yrs

Tenure

US$13,563,404

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 ($USD13.56M) is about average for companies of similar size in the US market ($USD11.23M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.0yrs

Average Tenure

55yo

Average Age

Experienced Management: SWK's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

61yo

Average Age

Experienced Board: SWK's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$34,73429 Aug 19
Jocelyn Belisle
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares268
Max PriceUS$129.61
SellUS$136,93923 May 19
Jaime Ramirez
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Global Emerging Markets
Shares1,000
Max PriceUS$136.94
SellUS$937,12806 May 19
Robert Raff
EntityIndividual
Shares6,179
Max PriceUS$152.30
SellUS$1,324,51201 May 19
Joseph Voelker
EntityIndividual
Shares9,000
Max PriceUS$147.17
SellUS$971,06330 Apr 19
James Loree
EntityIndividual
Role
Chief Executive Officer
President
Shares6,699
Max PriceUS$145.16
SellUS$2,350,54225 Apr 19
Jeffery Ansell
EntityIndividual
Role
Senior Key Executive
Executive VP and President of Tools & Storage
Shares15,639
Max PriceUS$150.30
SellUS$479,53227 Feb 19
Joseph Voelker
EntityIndividual
Shares3,488
Max PriceUS$137.48
SellUS$71,21228 Jan 19
Jaime Ramirez
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Global Emerging Markets
Shares600
Max PriceUS$118.69
SellUS$918,21930 Oct 18
Jaime Ramirez
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Global Emerging Markets
Shares8,251
Max PriceUS$111.29
BuyUS$102,42830 Oct 18
Michael Hankin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares907
Max PriceUS$112.93

Ownership Breakdown


Management Team

  • Jim Loree (61yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$13.56m
  • Don Allan (55yo)

    Executive VP & CFO

    • Tenure: 10.8yrs
    • Compensation: US$4.03m
  • Janet Link (49yo)

    Senior VP

    • Tenure: 2.3yrs
    • Compensation: US$4.00m
  • Jeff Ansell (51yo)

    Executive VP and President of Tools & Storage

    • Tenure: 15.8yrs
    • Compensation: US$4.13m
  • Jaime Ramirez (51yo)

    Senior VP & President of Global Emerging Markets

    • Tenure: 7yrs
    • Compensation: US$2.80m
  • John H. Wyatt (60yo)

    President of Stanley Engineered Fastening

    • Tenure: 3.8yrs
    • Compensation: US$2.84m
  • Jocelyn Belisle

    VP & Chief Accounting Officer

    • Tenure: 10.3yrs
  • Rhonda Gass (55yo)

    VP & Chief Information Officer

    • Tenure: 7yrs
  • Mark Maybury

    Chief Technology Officer

    • Tenure: 1.9yrs
  • Dennis Lange

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • George Buckley (72yo)

    Independent Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$475.00k
  • Robert Coutts (69yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$291.22k
  • Jim Loree (61yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$13.56m
  • Mike Hankin (61yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$305.46k
  • Carlos Cardoso (61yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$329.92k
  • Patrick Campbell (66yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: US$287.65k
  • Dmitri Stockton (55yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$77.28k
  • Andrea Ayers (55yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$265.00k
  • Debra Crew (48yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$275.42k
  • Jim Scholefield (57yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$267.79k

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$22.365b
  • Shares outstanding: 151.74m
  • 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

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 Analysis2019/10/16 23:42
End of Day Share Price2019/10/16 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.