Stanley Black & Decker, Inc. Fundamental Analysis
Stanley Black & Decker, Inc. Fundamental Analysis
Stanley Black & Decker, Inc. (SWH) shows weak financial fundamentals with a PE ratio of 89.19, profit margin of 1.19%, and ROE of 1.93%. The company generates $7.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SWH's fundamental strength across five key dimensions:
Efficiency Score
WeakSWH struggles to generate sufficient returns from assets.
Valuation Score
ModerateSWH shows balanced valuation metrics.
Growth Score
ModerateSWH shows steady but slowing expansion.
Financial Health Score
ExcellentSWH maintains a strong and stable balance sheet.
Profitability Score
ModerateSWH maintains healthy but balanced margins.
Key Financial Metrics
Is SWH Expensive or Cheap?
P/E Ratio
SWH trades at 89.19 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SWH's PEG of 1.72 indicates fair valuation.
Price to Book
The market values Stanley Black & Decker, Inc. at 2.11 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.32 times EBITDA. This is generally considered low.
How Well Does SWH Make Money?
Net Profit Margin
For every $100 in sales, Stanley Black & Decker, Inc. keeps $1.19 as profit after all expenses.
Operating Margin
Core operations generate 2.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.93 in profit for every $100 of shareholder equity.
ROA
Stanley Black & Decker, Inc. generates $0.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Stanley Black & Decker, Inc. generates limited operating cash flow of $28.70M, signaling weaker underlying cash strength.
Free Cash Flow
Stanley Black & Decker, Inc. generates weak or negative free cash flow of $28.70M, restricting financial flexibility.
FCF Per Share
Each share generates $0.31 in free cash annually.
FCF Yield
SWH converts 0.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
89.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.008
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How SWH Stacks Against Its Sector Peers
| Metric | SWH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 89.19 | 30.64 | Worse (Expensive) |
| ROE | 1.93% | 1198.00% | Weak |
| Net Margin | 1.19% | -20860.00% (disorted) | Weak |
| Debt/Equity | 0.72 | 0.39 | Weak (High Leverage) |
| Current Ratio | 1.14 | 21.69 | Neutral |
| ROA | 0.64% | -1320843.00% (disorted) | Weak |
SWH outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Stanley Black & Decker, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure