Stanley Black & Decker (SWK) AI Stock Analysis

• Market Cap: $9.72B
• Dividend Yield: 5.2%
• Average Volume (3M): 2.11M
• Price to Earnings (P/E): 33.2
• Beta (1Y): 1.32
• Revenue Growth: -2.63%
• EPS Growth: N/A
• Country: US
• Employees: 48,500
• Sector: Industrials
• Sector Strength: 63
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.89
• Shares Outstanding: 154,537,520
• 10 Day Avg. Volume: 2,748,268
• 30 Day Avg. Volume: 2,112,191
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.80
• Price to Cash Flow (P/CF): 3.70
• P/FCF Ratio: 3.10
• 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: $101.00
• Price Target Upside: 60.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

Stanley Black & Decker's overall score is driven by its precarious financial position, marked by declining revenues and zero stockholders' equity. However, recent improvements in cash flow and net income provide some optimism. Technical indicators show moderate positive momentum, but the high P/E ratio suggests potential overvaluation. The earnings call highlighted positive developments in margin expansion and debt reduction, although concerns remain about market softness and tariff impacts.

Positive Factors

Home Improvement Market

Improving contractor sentiment and better home improvement optimism are favorable for SWK.

Product Innovation

Labor shortages in professional trades require higher output from fewer workers, favoring DEWALT's innovation centered on Pro productivity.

Stock Valuation

SWK is trading at a significant discount compared to its peers, despite expectations of above-average EBIT and EPS growth.

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.

Growth Expectations

Slower-than-expected guidance of top-line growth and GM expansion trend.

Market Reaction

After the analyst conf call, the pre-market was down ~4%.

Stanley Black & Decker Business Overview & Revenue Model

Company Description

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. The company's Industrial segment provides engineered fastening systems and products to customers in the automotive, manufacturing, electronics, construction, aerospace, and other industries; sells and rents custom pipe handling, joint welding, and coating equipment for use in the construction of large and small diameter pipelines, as well as provides pipeline inspection services; and sells hydraulic tools and performance-driven heavy equipment attachment tools. This segment serves oil and natural gas pipeline industry and other industrial customers. It also sells automatic doors to commercial customers. The company was formerly known as The Stanley Works and changed its name to Stanley Black & Decker, Inc. in March 2010. Stanley Black & Decker, Inc. was founded in 1843 and is headquartered in New Britain, Connecticut.

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: 62.88
• 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 62.88 is below the 20-day moving average (MA) of 78.44, below the 50-day MA of 83.06, and below the 200-day MA of 88.92, indicating a bearish trend. The MACD of -2.06 indicates Positive momentum. The RSI at 35.87 is Neutral, neither overbought nor oversold. The STOCH value of 19.25 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
SNA	79 Outperform	$17.16B	16.78	19.95%	2.54%	<0.01%	3.74%
RBC	73 Outperform	$9.97B	42.37	8.35%	―	4.62%	21.58%
LECO	71 Outperform	$9.64B	21.11	35.36%	1.70%	-4.23%	-13.42%
TKR	62 Neutral	$4.22B	12.05	13.04%	2.26%	-4.11%	-8.74%
Sector *	62 Neutral	$7.26B	12.38	3.01%	3.40%	3.58%	-14.13%
HLMN	61 Neutral	$1.61B	92.39	1.48%	―	-0.26%	―
SWK	57 Neutral	$9.72B	33.23	3.22%	5.20%	-2.63%	―

Stanley Black & Decker Corporate Events

Stanley Black & Decker Announces Leadership Transition

On March 31, 2025, Stanley Black & Decker announced that Tamer K. Abuaita, the Global Chief Supply Chain Officer and President, Industrial, will transition to a Senior Advisor role effective May 1, 2025. This move is part of the company’s strategic realignment of its Global Supply Chain function, aiming to enhance connections with end users and customers to drive growth. Abuaita will maintain his salary and benefits during his advisory period and receive severance benefits post-advisory role, contingent on compliance with non-competition and non-solicitation obligations.