NYSE:SWK

Stock Analysis Report

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Market Cap

US$31.5b

Last Updated

2021/06/20 22:55 UTC

Data Sources

Company Financials +

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 +/- 3% a week.

Volatility Over Time: SWK's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-4.2%

SWK

-5.3%

US Machinery

-1.9%

US Market


1 Year Return

45.6%

SWK

48.4%

US Machinery

38.2%

US Market

Return vs Industry: SWK underperformed the US Machinery industry which returned 49.4% over the past year.

Return vs Market: SWK exceeded the US Market which returned 39.4% over the past year.


Shareholder returns

SWKIndustryMarket
7 Day-4.2%-5.3%-1.9%
30 Day-7.2%-5.6%1.1%
90 Day-0.4%-4.7%4.3%
1 Year47.8%45.6%51.5%48.4%40.4%38.2%
3 Year52.5%44.4%58.6%49.2%57.5%47.8%
5 Year98.9%81.8%147.4%122.5%127.2%101.7%

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?

1.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SWK ($195.41) is trading below our estimate of fair value ($196.74)

Significantly Below Fair Value: SWK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SWK is good value based on its PE Ratio (19.6x) compared to the US Machinery industry average (33.3x).

PE vs Market: SWK is poor value based on its PE Ratio (19.6x) compared to the US market (19.4x).


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 (3.2x) compared to the US Machinery industry average (3x).


Future Growth

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

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWK's forecast earnings growth (11% per year) is above the savings rate (2%).

Earnings vs Market: SWK's earnings (11% per year) are forecast to grow slower than the US market (15.7% per year).

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

Revenue vs Market: SWK's revenue (7.2% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: SWK's revenue (7.2% 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 (14.6%).


Past Performance

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

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWK has a large one-off loss of $514.3M impacting its April 3 2021 financial results.

Growing Profit Margin: SWK's current net profit margins (10%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: SWK's earnings have declined by 0.3% per year over the past 5 years.

Accelerating Growth: SWK's earnings growth over the past year (70.7%) exceeds its 5-year average (-0.3% per year).

Earnings vs Industry: SWK earnings growth over the past year (70.7%) exceeded the Machinery industry -6.4%.


Return on Equity

High ROE: SWK's Return on Equity (13.9%) is considered low.


Financial Health

How is Stanley Black & Decker's financial position?


Financial Position Analysis

Short Term Liabilities: SWK's short term assets ($6.5B) exceed its short term liabilities ($4.6B).

Long Term Liabilities: SWK's short term assets ($6.5B) do not cover its long term liabilities ($7.9B).


Debt to Equity History and Analysis

Debt Level: SWK's debt to equity ratio (37.6%) is considered satisfactory.

Reducing Debt: SWK's debt to equity ratio has reduced from 76.6% to 37.6% over the past 5 years.

Debt Coverage: SWK's debt is well covered by operating cash flow (53%).

Interest Coverage: SWK's interest payments on its debt are well covered by EBIT (12.3x coverage).


Balance Sheet


Dividend

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

1.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SWK's dividend (1.43%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: SWK's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (3.43%).


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 (28%), 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 (23.5% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Jim Loree (62 yo)

4.83yrs

Tenure

US$16,270,624

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 ($USD16.27M) is above average for companies of similar size in the US market ($USD11.27M).

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


Leadership Team

Experienced Management: SWK's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: SWK's board of directors are considered experienced (5 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 4.8%.


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$31.479b
  • Shares outstanding: 161.49m
  • Website: https://www.stanleyblackanddecker.com

Number of Employees


Location

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

Listings


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 Analysis2021/06/20 22:55
End of Day Share Price2021/06/18 00:00
Earnings2021/04/03
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.