Stanley Black & Decker, Inc.
Stanley Black & Decker, Inc. Fundamental Analysis
Stanley Black & Decker, Inc. (SWK) shows weak financial fundamentals with a PE ratio of 31.27, profit margin of 2.44%, and ROE of 4.12%. The company generates $15.6B in annual revenue with weak year-over-year growth of -1.53%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SWK's fundamental strength across five key dimensions:
Efficiency Score
WeakSWK struggles to generate sufficient returns from assets.
Valuation Score
WeakSWK trades at a premium to fair value.
Growth Score
ModerateSWK shows steady but slowing expansion.
Financial Health Score
ExcellentSWK maintains a strong and stable balance sheet.
Profitability Score
WeakSWK struggles to sustain strong margins.
Key Financial Metrics
Is SWK Expensive or Cheap?
P/E Ratio
SWK trades at 31.27 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SWK's PEG of 75.98 indicates potential overvaluation.
Price to Book
The market values Stanley Black & Decker, Inc. at 1.29 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.31 times EBITDA. This is generally considered low.
How Well Does SWK Make Money?
Net Profit Margin
For every $100 in sales, Stanley Black & Decker, Inc. keeps $2.44 as profit after all expenses.
Operating Margin
Core operations generate 7.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.12 in profit for every $100 of shareholder equity.
ROA
Stanley Black & Decker, Inc. generates $1.72 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 $1.03B, signaling weaker underlying cash strength.
Free Cash Flow
Stanley Black & Decker, Inc. produces free cash flow of $743.27M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.78 in free cash annually.
FCF Yield
SWK converts 6.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
75.98
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.78
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
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How SWK Stacks Against Its Sector Peers
| Metric | SWK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.27 | 26.09 | Worse (Expensive) |
| ROE | 4.12% | 1258.00% | Weak |
| Net Margin | 2.44% | -33493.00% (disorted) | Weak |
| Debt/Equity | 0.72 | 0.73 | Neutral |
| Current Ratio | 1.14 | 10.37 | Neutral |
| ROA | 1.72% | -1482877.00% (disorted) | Weak |
SWK 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
17.96%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-66.88%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-51.10%
Industry Style: Cyclical, Value, Infrastructure
Declining