Stanley Black & Decker (NYSE:SWK) - Share price, News & Analysis

SWK fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	1/6
Financial Health	2/6
Dividends	4/6

SWK Stock Overview

Stanley Black & Decker, Inc. engages in the tools and storage and industrial businesses in the United States, Canada, rest of Americas, France, rest of Europe, and Asia.

Rewards

Trading at 44.6% below our estimate of its fair value

Earnings are forecast to grow 15.49% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 2.72% is not well covered by earnings

Large one-off items impacting financial results

Significant insider selling over the past 3 months

Stanley Black & Decker Competitors

Illinois Tool Works

NYSE:ITW

US$62.8b

Dover

NYSE:DOV

US$18.9b

Ingersoll Rand

NYSE:IR

US$18.2b

Pentair

NYSE:PNR

US$8.1b

Price History & Performance

Summary of all time highs, changes and price drops for Stanley Black & Decker
Historical stock prices
Current Share Price	US$116.35
52 Week High	US$219.59
52 Week Low	US$112.38
Beta	1.37
1 Month Change	-19.34%
3 Month Change	-28.09%
1 Year Change	-44.62%
3 Year Change	-12.39%
5 Year Change	-14.94%
Change since IPO	485.41%

Recent News & Updates

May 05

Stanley Black & Decker: Interesting After Expectations Reset

SWK reported terrible Q1 earnings, especially with supply chain cost inflation. With a plagued earnings trajectory, management cut guidance. Nonetheless, revenue is growing 20+% annualized and margins should improve over time as price increases materialize. Investors can buy into an excellent business at a fair valuation.

May 03

Are Investors Undervaluing Stanley Black & Decker, Inc. (NYSE:SWK) By 41%?

Today we will run through one way of estimating the intrinsic value of Stanley Black & Decker, Inc. ( NYSE:SWK ) by...

Shareholder Returns

	SWK	US Machinery	US Market
7D	-4.3%	-4.1%	-2.7%
1Y	-44.6%	-19.3%	-12.9%

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

Return vs Market: SWK underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is SWK's price volatile compared to industry and market?
SWK volatility
SWK Average Weekly Movement	5.9%
Machinery Industry Average Movement	5.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: SWK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SWK's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1843	71,300	Jim Loree	https://www.stanleyblackanddecker.com

Stanley Black & Decker, Inc. engages in the tools and storage and industrial businesses in the United States, Canada, rest of Americas, France, rest of Europe, and Asia. Its Tools & Storage segment offers professional products, including professional grade corded and cordless electric power tools and equipment, and pneumatic tools and fasteners; and consumer products, such as corded and cordless electric power tools primarily under the BLACK+DECKER brand, as well as corded and cordless lawn and garden products and related accessories; home products; and hand tools, power tool accessories, and storage products. This segment sells its products through retailers, distributors, dealers, and a direct sales force to professional end users, distributors, dealers, retail consumers, and industrial customers in various industries.

Stanley Black & Decker Fundamentals Summary

How do Stanley Black & Decker's earnings and revenue compare to its market cap?
SWK fundamental statistics
Market Cap	US$17.56b
Earnings (TTM)	US$1.29b
Revenue (TTM)	US$16.34b

13.6x

P/E Ratio

1.1x

P/S Ratio

Is SWK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SWK income statement (TTM)
Revenue	US$16.34b
Cost of Revenue	US$11.11b
Gross Profit	US$5.24b
Other Expenses	US$3.94b
Earnings	US$1.29b

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	8.55
Gross Margin	32.03%
Net Profit Margin	7.90%
Debt/Equity Ratio	111.6%

How did SWK perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

38%

Payout Ratio

Does SWK pay a reliable dividends?

See SWK dividend history and benchmarks

When do you need to buy SWK by to receive an upcoming dividend?
Stanley Black & Decker dividend dates
Ex Dividend Date	Jun 06 2022
Dividend Pay Date	Jun 21 2022
Days until Ex dividend	15 days
Days until Dividend pay date	30 days

Does SWK pay a reliable dividends?

See SWK dividend history and benchmarks

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

44.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SWK ($116.35) is trading below our estimate of fair value ($210.16)

Significantly Below Fair Value: SWK is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: SWK is good value based on its PE Ratio (13.6x) compared to the US Machinery industry average (21.3x).

PE vs Market: SWK is good value based on its PE Ratio (13.6x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: SWK is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: SWK's PB Ratio (2x) is in line with the US Machinery industry average.

Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWK's forecast earnings growth (15.5% per year) is above the savings rate (1.9%).

Earnings vs Market: SWK's earnings (15.5% per year) are forecast to grow faster than the US market (12.5% per year).

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

Revenue vs Market: SWK's revenue (4.4% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: SWK's revenue (4.4% 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 (17.4%).

Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

8.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SWK has a large one-off loss of $460.3M impacting its April 2 2022 financial results.

Growing Profit Margin: SWK's current net profit margins (7.9%) are lower than last year (10.8%).

Past Earnings Growth Analysis

Earnings Trend: SWK's earnings have grown by 8.3% 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 (-12.5%) over the past year, making it difficult to compare to the Machinery industry average (24%).

Return on Equity

High ROE: SWK's Return on Equity (13.8%) is considered low.

Financial Health

How is Stanley Black & Decker's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SWK's short term assets ($9.7B) do not cover its short term liabilities ($11.0B).

Long Term Liabilities: SWK's short term assets ($9.7B) exceed its long term liabilities ($9.0B).

Debt to Equity History and Analysis

Debt Level: SWK's net debt to equity ratio (109.9%) is considered high.

Reducing Debt: SWK's debt to equity ratio has increased from 73.3% to 111.6% over the past 5 years.

Debt Coverage: SWK's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SWK's interest payments on its debt are well covered by EBIT (9.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.72%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: SWK's dividend (2.72%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: SWK's dividend (2.72%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.6%), SWK's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: SWK is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

7.3yrs

Average management tenure

CEO

Jim Loree (63 yo)

5.75yrs

Tenure

US$13,167,893

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 ($USD13.17M) is about average for companies of similar size in the US market ($USD13.34M).

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 seasoned and experienced (7.3 years average tenure).

Board Members

Experienced Board: SWK's board of directors are considered experienced (6.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/04/02
Annual Earnings	2022/01/01