NYSE:SWK

Stock Analysis Report

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Executive Summary

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


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 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

6.0%

SWK

2.2%

US Machinery

-0.4%

US Market


1 Year Return

44.5%

SWK

57.1%

US Machinery

36.2%

US Market

Return vs Industry: SWK underperformed the US Machinery industry which returned 57.1% over the past year.

Return vs Market: SWK exceeded the US Market which returned 36.2% over the past year.


Shareholder returns

SWKIndustryMarket
7 Day6.0%2.2%-0.4%
30 Day4.9%6.1%-2.9%
90 Day3.8%15.1%5.0%
1 Year46.5%44.5%60.9%57.1%39.1%36.2%
3 Year22.1%15.8%45.5%35.1%48.4%39.0%
5 Year102.3%85.3%157.7%131.3%116.5%92.4%

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?

23.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SWK ($185.31) is trading above our estimate of fair value ($151.35)

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 (23.6x) compared to the US Machinery industry average (34.4x).

PE vs Market: SWK is poor value based on its PE Ratio (23.6x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: SWK is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: SWK's PB Ratio (3.1x) is in line with the US Machinery industry average.


Next Steps

Future Growth

How is Stanley Black & Decker forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWK's forecast earnings growth (14.4% per year) is above the savings rate (2%).

Earnings vs Market: SWK's earnings (14.4% per year) are forecast to grow slower than the US market (19.2% per year).

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

Revenue vs Market: SWK's revenue (5.7% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: SWK's revenue (5.7% 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?

-3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWK has a large one-off loss of $490.7M impacting its January 2 2021 financial results.

Growing Profit Margin: SWK's current net profit margins (8.3%) are higher than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: SWK's earnings have declined by 3.4% per year over the past 5 years.

Accelerating Growth: SWK's earnings growth over the past year (27%) exceeds its 5-year average (-3.4% per year).

Earnings vs Industry: SWK earnings growth over the past year (27%) exceeded the Machinery industry -12.2%.


Return on Equity

High ROE: SWK's Return on Equity (11.2%) 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 ($6.0B) exceed its short term liabilities ($4.6B).

Long Term Liabilities: SWK's short term assets ($6.0B) do not cover its long term liabilities ($7.9B).


Debt to Equity History and Analysis

Debt Level: SWK's debt to equity ratio (39.2%) is considered satisfactory.

Reducing Debt: SWK's debt to equity ratio has reduced from 65.9% to 39.2% over the past 5 years.

Debt Coverage: SWK's debt is well covered by operating cash flow (46.6%).

Interest Coverage: SWK's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SWK's dividend (1.51%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: SWK's dividend (1.51%) is low compared to the top 25% of dividend payers in the US market (3.64%).


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 (35.4%), 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 (25.5% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Jim Loree (62 yo)

4.58yrs

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 August 2016. Mr. Loree had been the President of Stanley Black & Decker, Inc. since January...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD18.69M) is above average for companies of similar size in the US market ($USD10.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Loree
CEO & Director4.58yrsUS$18.69m0.069%
$ 20.5m
Donald Allan
President & CFO0.083yrUS$4.02m0.045%
$ 13.4m
Janet Link
Senior VP3.67yrsUS$2.95m0.0041%
$ 1.2m
Jeffery Ansell
Executive Vice Presidentno dataUS$4.03m0.0035%
$ 1.0m
John H. Wyatt
Senior VP & President of Outdoor6.17yrsUS$2.71m0.018%
$ 5.3m
Robert Blackburn
Senior Vice President of Global Operations1.83yrsno data0.00038%
$ 113.3k
Jocelyn Belisle
VP & Chief Accounting Officer11.67yrsno data0.0046%
$ 1.4m
Mark Maybury
Chief Technology Officer3.33yrsno datano data
Rhonda Gass
VP & Chief Information Officer8.42yrsno datano data
Dennis Lange
Vice President of Investor Relationsno datano datano data
Shannon Lapierre
VP & Chief Communications Officerno datano datano data
Stephen Subasic
Senior VP & Chief Human Resources Officer0.17yrno data0.0050%
$ 1.5m

3.7yrs

Average Tenure

54yo

Average Age

Experienced Management: SWK's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Loree
CEO & Director4.58yrsUS$18.69m0.069%
$ 20.5m
George Buckley
Independent Chairman of the Board4.17yrsUS$506.77k0.0095%
$ 2.8m
Robert Coutts
Independent Director13.67yrsUS$314.80kno data
Michael Hankin
Independent Director4.92yrsUS$325.58k0.0013%
$ 399.5k
Carlos Cardoso
Independent Director13.42yrsUS$330.00kno data
Patrick Campbell
Independent Director12.42yrsUS$307.19kno data
Dmitri Stockton
Independent Director2.67yrsUS$305.00kno data
Andrea Ayers
Independent Director6.25yrsUS$312.50kno data
Debra Crew
Independent Director7.25yrsUS$305.00kno data
Tiang Yew Tan
Director1.08yrsno datano data
Mojdeh Poul
Director0.083yrno datano data
Jane Palmieri
Director0.083yrno datano data

4.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SWK's board of directors are considered experienced (4.8 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 4.5%.


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$29.815b
  • Shares outstanding: 160.89m
  • 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 the tools and storage, industrial, and security businesses worldwide. Its Tools & Storage segment offers power tools and equipment, including professional products, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 23:28
End of Day Share Price2021/03/05 00:00
Earnings2021/01/02
Annual Earnings2021/01/02


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.