Stanley Black & Decker (SWK) AI Stock Analysis

• Market Cap: $10.47B
• Dividend Yield: 4.85%
• Average Volume (3M): 2.43M
• Price to Earnings (P/E): 28.7
• Beta (1Y): 1.21
• Revenue Growth: -3.04%
• EPS Growth: N/A
• Country: US
• Employees: 48,000
• Sector: Industrials
• Sector Strength: 88
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 0.75
• Shares Outstanding: 154,712,520
• 10 Day Avg. Volume: 2,183,438
• 30 Day Avg. Volume: 2,431,681
• PEG Ratio: 1.10
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.06
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 3.59
• Enterprise Value/Ebitda: 3.36
• 1Y Price Target: $79.17
• Price Target Upside: 12.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: $75.00 ▲(6.52%Upside)

Stanley Black & Decker's overall stock score reflects solid financial performance and positive technical indicators. The valuation indicates some overvaluation concerns, but a strong dividend yield offsets this. The recent earnings call and corporate events also contribute positively, though tariff and market challenges need monitoring.

Positive Factors

Earnings Potential

Analysts anticipate a 20% upside to shares as DEWALT momentum, CRAFTSMAN stabilization, and gross margin recapture materialize.

Industry Trends

The aging housing stock in the U.S. is expected to drive higher homeowner spending on repairs and renovations, benefiting SWK's power tools segment.

Market Positioning

SWK is trading at a significant discount compared to its peers, despite expectations of above-average EBIT and EPS growth from '24 to '27.

Negative Factors

Earnings Guidance

SWK guides adjusted 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 conference call, the pre-market was down approximately 4%.

Stanley Black & Decker Business Overview & Revenue Model

Company Description

Stanley Black & Decker, Inc. (SWK) is a globally renowned diversified industrial company, primarily known for its robust portfolio of tools and storage solutions, engineered fastening systems, and security products. Headquartered in New Britain, Connecticut, the company operates in three main segments: Tools & Storage, Industrial, and Security. Its core products include power tools, hand tools, and related accessories, as well as engineered solutions for industrial applications and comprehensive security services. With a legacy of over 175 years, Stanley Black & Decker continues to innovate and deliver solutions that meet the needs of professionals and consumers worldwide.

How the Company Makes Money

Stanley Black & Decker generates revenue through the sale of its diverse range of products and services across its three main business segments. The Tools & Storage segment, which is the largest contributor to the company's revenue, includes renowned brands like DEWALT, Stanley, and Black+Decker. This segment earns money through the sale of power tools, hand tools, and related accessories to both retail and professional markets. The Industrial segment contributes to the company's revenue by providing engineered fastening systems and infrastructure solutions, serving industries such as automotive, aerospace, and oil & gas. The Security segment offers electronic security solutions, healthcare solutions, and monitoring services to commercial, industrial, and governmental clients. Key revenue streams include product sales, service contracts, and maintenance agreements. The company also benefits from strategic partnerships and global distribution networks, which enhance its market reach and sales capabilities.

Stanley Black & Decker Financial Statement Overview

Summary

Stanley Black & Decker has solid profitability despite revenue declines, with efficient cost management reflected in EBIT and EBITDA margins. The balance sheet is stable with a healthy equity base and manageable debt levels, though returns on equity could improve. Cash flow generation is robust, but past fluctuations warrant careful monitoring.

Income Statement

The company's gross profit and net profit margins are solid, with TTM figures showing a gross profit margin of 29.92% and a net profit margin of 2.34%. However, revenue has been declining, with a 4.32% drop in the most recent annual report. Despite this, profitability metrics like EBIT and EBITDA margins show resilience, indicating efficient cost management.

Balance Sheet

Stanley Black & Decker maintains a healthy equity base, with an equity ratio of 50.64% in the latest TTM data. The debt-to-equity ratio is manageable at 0.52, suggesting a balanced leverage position. However, the return on equity is modest at 3.14%, reflecting room for improvement in generating returns for shareholders.

Cash Flow

The cash flow generation is strong, with a positive free cash flow of $1.25 billion in TTM, showing a significant increase from the previous period. The company has a robust operating cash flow to net income ratio of 3.13, indicating effective cash conversion efficiency. However, fluctuations in previous periods suggest some volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.24B	15.37B	15.78B	16.95B	15.62B	14.53B
Gross Profit	4.56B	4.51B	4.10B	4.28B	5.19B	4.97B
EBITDA	1.39B	1.32B	802.70M	942.80M	2.35B	2.00B
Net Income	357.20M	294.30M	-310.50M	170.30M	1.69B	1.23B
Balance Sheet
Total Assets	22.50B	21.85B	23.66B	24.96B	28.20B	23.57B
Cash, Cash Equivalents and Short-Term Investments	344.80M	290.50M	449.40M	395.60M	142.30M	1.38B
Total Debt	6.74B	6.23B	7.30B	7.46B	6.60B	4.25B
Total Liabilities	13.65B	13.13B	14.61B	15.25B	16.61B	12.50B
Stockholders Equity	8.84B	8.72B	9.06B	9.71B	11.59B	11.06B
Cash Flow
Free Cash Flow	764.70M	753.00M	852.60M	-1.99B	144.00M	1.67B
Operating Cash Flow	1.12B	1.11B	1.19B	-1.46B	663.10M	2.02B
Investing Cash Flow	399.70M	394.20M	-327.70M	3.60B	-2.62B	-1.57B
Financing Cash Flow	-1.60B	-1.56B	-816.00M	-2.00B	914.60M	610.00M

Stanley Black & Decker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.41
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWK, the sentiment is Positive. The current price of 70.41 is above the 20-day moving average (MA) of 66.47, above the 50-day MA of 64.73, and below the 200-day MA of 80.46, indicating a neutral trend. The MACD of 0.67 indicates Negative momentum. The RSI at 64.32 is Neutral, neither overbought nor oversold. The STOCH value of 79.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWK.

Stanley Black & Decker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LECO	77 Outperform	$11.68B	25.83	34.83%	1.45%	-2.29%	-14.49%
RBC	77 Outperform	$12.00B	50.09	8.51%	―	4.87%	19.66%
TKR	74 Outperform	$5.28B	16.28	11.85%	1.93%	-3.69%	-11.76%
SWK	72 Outperform	$10.47B	28.73	4.03%	4.85%	-3.04%	―
SNA	72 Outperform	$16.26B	16.28	19.15%	2.75%	-0.88%	0.04%
Sector *	68 Neutral	£2.94B	10.28	8.40%	3.46%	2.87%	-9.95%
HLMN	67 Neutral	$1.48B	80.91	1.57%	―	0.31%	―

Stanley Black & Decker Corporate Events

Stanley Black & Decker Announces New CEO Appointment

On June 29, 2025, Stanley Black & Decker announced a leadership transition effective October 1, 2025, appointing Christopher J. Nelson as President and CEO, succeeding Donald Allan, Jr., who will become Executive Chairman. This transition is part of a comprehensive succession plan aimed at sustaining the company’s growth and transformation strategy. Nelson, who joined the company in 2023, has played a key role in optimizing its core businesses and is expected to lead the company into its next growth phase. The transition is expected to maintain the company’s strategic direction and ensure continued value creation for stakeholders.

The most recent analyst rating on (SWK) stock is a Hold with a $94.00 price target. To see the full list of analyst forecasts on Stanley Black & Decker stock, see the SWK Stock Forecast page.

Stanley Black & Decker Secures New $1.25 Billion Credit

On June 23, 2025, Stanley Black & Decker entered into a new 364-Day Credit Agreement with several major financial institutions, establishing a $1.25 billion revolving credit loan to be used for general corporate purposes. This agreement, which replaces a previous credit arrangement, includes terms that allow the company to convert outstanding advances into a term loan and imposes certain financial covenants, such as maintaining an interest coverage ratio. Additionally, the company amended its existing Five-Year Credit Agreement to adjust financial definitions and requirements, reflecting a strategic effort to optimize its financial management and operational flexibility.

The most recent analyst rating on (SWK) stock is a Buy with a $118.00 price target. To see the full list of analyst forecasts on Stanley Black & Decker stock, see the SWK Stock Forecast page.

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.