Stanley Black & Decker (SWK) AI Stock Analysis

• Market Cap: $13.36B
• Dividend Yield: 3.88%
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): 45.7
• Beta (1Y): 1.22
• Revenue Growth: -2.63%
• EPS Growth: N/A
• Country: US
• Employees: 50,500
• Sector: Industrials
• Sector Strength: 66
• Industry: Industrial Goods
• EPS (TTM): 1.89
• Shares Outstanding: 154,413,960
• 10 Day Avg. Volume: 1,467,975
• 30 Day Avg. Volume: 1,963,286
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.87
• Price to Cash Flow (P/CF): 4.10
• P/FCF Ratio: 3.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $102.00
• Price Target Upside: 25.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Stanley Black & Decker's stock exhibits financial challenges with declining revenues, zero stockholders' equity, and operational inefficiencies, contributing to a low financial performance score. Despite some improvements and a positive earnings call highlighting gross margin expansion and debt reduction, technical indicators suggest a bearish trend, and valuation metrics indicate potential overvaluation. The company's ability to manage these financial challenges while capitalizing on strategic growth areas will be critical for future performance.

Positive Factors

China tariffs impact

Actual China tariffs of 10% incremental vs prior expectations of 60% have a positive impact on the valuation setup.

Transformation completion

SWK has orchestrated a comprehensive transformation since mid-'22 which substantially culminates in '25, so execution risk from 'heavy lifting' is largely in the rearview.

Negative Factors

Earnings guidance

SWK guides adj EPS of US$5.25 (+/- US$0.5), which was below consensus estimates of US$5.52 per VisibleAlpha.

Stanley Black & Decker Business Overview & Revenue Model

Company Description

Stanley Black & Decker, Inc. (SWK) is a leading global diversified industrial company that operates in three main segments: Tools & Storage, Industrial, and Security. The company is renowned for its robust portfolio of iconic brands, including DEWALT, Stanley, Black+Decker, and Craftsman, among others. Stanley Black & Decker provides a wide range of products and solutions spanning hand tools, power tools, and related accessories, as well as engineered fastening systems and security solutions for both commercial and residential applications.

How the Company Makes Money

Stanley Black & Decker generates revenue primarily through the sale of tools and storage products, which is the largest segment and includes hand tools, power tools, and accessories under various brand names. The Industrial segment contributes to the company's revenue by offering engineered fastening systems and infrastructure solutions, targeting automotive, industrial, and construction industries. The Security segment provides electronic security systems, healthcare solutions, and monitoring services. The company's earnings are also bolstered by strategic acquisitions, brand licensing agreements, and a strong global distribution network that expands its market reach. Additionally, Stanley Black & Decker engages in research and development to innovate and enhance its product offerings, further driving sales growth.

Stanley Black & Decker Financial Statement Overview

Summary

Stanley Black & Decker faces financial challenges, particularly in declining revenues and equity depletion. Although recent improvements in net income and cash flow generation are promising, the company's financial health is precarious due to zero stockholders' equity and fluctuating operational efficiency. The company's ability to sustain positive cash flows amidst these challenges will be crucial for future stability.

Income Statement

The income statement shows a declining revenue trend over recent years, with a drop from $16.95 billion in 2022 to $15.37 billion in 2024. Gross profit margins have decreased, indicating cost pressures. Net income turned positive in 2024, recovering from a loss in 2023, but EBIT and EBITDA margins are under pressure, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet indicates a concerning financial position with zero stockholders' equity in 2024, suggesting financial instability. The debt-to-equity ratio is undefined due to non-existent equity, and the equity ratio is also unfavorable. The company has no long-term debt in 2024, which could be positive if it were not for the lack of equity.

Cash Flow

The cash flow statement shows a robust free cash flow in 2024, highlighting improvements in cash generation. Operating cash flow remains strong, and the free cash flow to net income ratio is healthy. However, past volatility in cash flows and negative free cash flow in 2022 warrant caution.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
15.37B	15.78B	16.95B	15.62B	14.53B
	Gross Profit
4.51B	4.10B	4.28B	5.19B	4.97B
	EBIT
286.30M	620.30M	956.90M	1.82B	1.47B
	EBITDA
1.33B	802.70M	942.80M	2.35B	2.00B
	Net Income Common Stockholders
294.30M	-310.50M	170.30M	1.69B	1.23B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
290.50M	449.40M	395.60M	142.30M	1.38B
	Total Assets
21.85B	23.66B	24.96B	28.20B	23.57B
	Total Debt
6.23B	7.30B	7.46B	6.60B	4.25B
	Net Debt
5.94B	6.86B	7.06B	6.45B	2.87B
	Total Liabilities
13.13B	14.61B	15.25B	16.61B	12.50B
	Stockholders Equity
8.72B	9.06B	9.71B	11.59B	11.06B
Cash Flow		Free Cash Flow
753.00M	852.60M	-1.99B	144.00M	1.67B
	Operating Cash Flow
1.11B	1.19B	-1.46B	663.10M	2.02B
	Investing Cash Flow
394.20M	-327.70M	3.60B	-2.62B	-1.57B
	Financing Cash Flow
-1.56B	-816.00M	-2.00B	914.60M	610.00M

Stanley Black & Decker Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 81.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWK, the sentiment is Negative. The current price of 81.45 is below the 20-day moving average (MA) of 85.69, below the 50-day MA of 83.91, and below the 200-day MA of 89.35, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 38.33 is Neutral, neither overbought nor oversold. The STOCH value of 1.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SWK.

Stanley Black & Decker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PH	75 Outperform	$86.08B	27.66	24.08%	1.00%	0.41%	19.76%
TTNDY	74 Outperform	$25.50B	24.45	16.99%	1.82%	8.03%	7.66%
DHR	65 Neutral	$147.01B	38.89	7.87%	0.53%	-13.50%	-17.25%
IR	62 Neutral	$32.83B	39.55	8.24%	0.10%	5.22%	8.01%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%
LEG	60 Neutral	$1.24B	―	-74.19%	6.85%	-7.28%	-272.76%
SWK	48 Neutral	$13.36B	45.73	3.38%	3.88%	-2.63%	―

Stanley Black & Decker Corporate Events

Stanley Black & Decker Strategizes Against Tariff Impacts

Stanley Black & Decker is strategizing to mitigate potential financial impacts from anticipated tariff increases under the new administration, which could significantly affect its operating income by $200 million annually. By adjusting supply chains and negotiating price increases, the company aims to reduce these costs over the next 12 to 24 months. Despite these challenges, management remains committed to its long-term growth and profitability goals, leveraging its strong U.S. manufacturing base to offset potential setbacks.

Mojdeh Poul to Leave Stanley Black & Decker Board

Mojdeh Poul will not seek re-election to Stanley Black & Decker’s board of directors at the 2025 annual meeting as she transitions to her new role as CEO of Integra LifeSciences Holdings. Her decision aligns with Integra’s policies on board service and is not due to any disagreements with Stanley Black & Decker.