tiprankstipranks
Trending News
More News >
Stanley Black & Decker (SWK)
:SWK
Advertisement

Stanley Black & Decker (SWK) AI Stock Analysis

Compare
1,736 Followers

Top Page

SWK

Stanley Black & Decker

(NYSE:SWK)

Rating:69Neutral
Price Target:
$82.00
▲(14.33% Upside)
Stanley Black & Decker's overall stock score reflects a balanced view of its current position. The most significant factor is its financial performance, which shows areas needing improvement in revenue and cash flow. Technical analysis indicates positive momentum, while valuation remains reasonable with a strong dividend yield. The earnings call highlights ongoing challenges, but the new CEO appointment is a positive strategic move.
Positive Factors
Leadership and Management
The hiring of high-caliber executives is expected to support Stanley Black & Decker's return to sustainable organic growth.
Strategic Planning
SWK has been executing against a comprehensive transformation plan which positions the company for sustainable growth.
Negative Factors
Economic Risks
Major downside risks include the onset of a consumer recession and a sharp move higher in tariffs that could further depress margins.
Tariff Concerns
A sharp move higher in tariffs could further depress margins in the absence of pricing power.

Stanley Black & Decker (SWK) vs. SPDR S&P 500 ETF (SPY)

Stanley Black & Decker Business Overview & Revenue Model

Company DescriptionStanley Black & Decker, Inc. is a global leader in tools and storage, industrial, and security solutions. The company operates through several segments, including Tools & Storage, Industrial, and Security. Stanley Black & Decker offers a wide range of products, including power tools, hand tools, mechanical access solutions, and electronic security systems, serving both professional tradespeople and consumers across various industries worldwide.
How the Company Makes MoneyThe company's revenue model primarily revolves around the sales of its diverse range of tools and products across its segments. Key revenue streams include the sale of power tools, hand tools, storage solutions, and industrial products. The Tools & Storage segment is the largest contributor to revenue, driven by strong demand in both professional and DIY markets. Additionally, the Industrial segment generates income through manufacturing solutions, while the Security segment provides electronic and mechanical security products and services. Significant partnerships with retailers and distributors, as well as ongoing innovations in product development, play crucial roles in enhancing sales. Furthermore, acquisitions have expanded their product offerings and market reach, contributing positively to overall earnings.

Stanley Black & Decker Key Performance Indicators (KPIs)

Any
Any
Profit by Segment
Profit by Segment
Details the profit contribution of each segment, providing insight into which parts of the business are most financially rewarding.
Chart InsightsStanley Black & Decker's Tools & Outdoor segment is recovering from a steep decline in 2022, showing gradual profit improvement through 2025. However, the latest earnings call highlights ongoing challenges from tariffs and a slow outdoor buying season, impacting revenue and margins. Despite these hurdles, the company is focused on supply chain efficiencies and cost-saving measures to bolster profitability. The Industrial segment faces pressure, with recent declines in profit, but strategic initiatives in aerospace and cost management may provide future support.
Data provided by:Main Street Data

Stanley Black & Decker Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company facing significant challenges due to revenue declines and tariff impacts, balanced by strong brand performance, innovation, and strategic cost-saving initiatives. The ongoing supply chain transformation and strong financial management are positives, but the immediate impact of tariffs and market conditions weigh heavily on current performance.
Q2-2025 Updates
Positive Updates
Commitment to Growth and Innovation
The company continues to focus on accelerating organic growth through targeted investments, prioritizing innovation, and launching new products like the MSUITE software for construction technology.
DEWALT Brand Performance
DEWALT continues to show consistent growth across all product lines and regions, driven by resilient professional demand and strategic investments in marketing and innovation.
Supply Chain Transformation
The company is in the final stages of a multiyear supply chain transformation, which is expected to yield $2 billion in cost savings, with $1.8 billion already achieved.
Aerospace Business Growth
The aerospace segment experienced over 20% organic growth, reaching a $400 million annualized revenue run rate.
Strong Cash Flow and Financial Management
Despite the challenging environment, the company generated $135 million in free cash flow in Q2 and maintains a strong focus on deleveraging and maintaining a resilient balance sheet.
Negative Updates
Revenue Decline
Overall revenue declined by 2% compared to the prior year, with a 3% organic decline, impacted by a slow outdoor buying season and tariff-related shipment disruptions.
Gross Margin Challenges
Adjusted gross margin decreased to 27.5% in Q2 due to tariffs and lower volume, though partially offset by supply chain efficiencies.
Tariff Impact
The company faces an estimated $800 million annualized gross tariff cost from recent policy changes, significantly impacting financial performance.
Challenges in Tools & Outdoor Segment
The Tools & Outdoor segment saw a 2% revenue decline, with a 5% volume drop due to a slow outdoor season and tariff disruptions.
Automotive and General Industrial Fasteners Decline
The automotive business faced a mid-single-digit organic decline, while general industrial fasteners saw a high single-digit decline.
Company Guidance
During the Stanley Black & Decker's Second Quarter 2025 Earnings Conference Call, the company provided several key metrics and guidance for the future. The revenue for the second quarter was reported at $3.9 billion, marking a 2% year-over-year decline and a 3% organic decline, attributed to a slow outdoor buying season and tariff-related disruptions. The adjusted gross margin rate was reported at 27.5%, down from the previous year due to impacts from tariffs and lower volume, although supply chain efficiencies and initial price actions provided some offset. The adjusted EBITDA margin was 8.1%, down by 260 basis points from the prior year. Adjusted earnings per share stood at $1.08, inclusive of a discrete tax benefit, while the free cash flow was $135 million. The company detailed its strategy to mitigate tariff impacts and confirmed plans for further pricing actions, aiming to return to a 35% adjusted gross margin trajectory. For the full year 2025, the company maintains an adjusted EPS guidance of approximately $4.65, with a target of $600 million in free cash flow, emphasizing disciplined cash management and deleveraging as key priorities.

Stanley Black & Decker Financial Statement Overview

Summary
Stanley Black & Decker shows mixed financial performance. While net profit margin and return on equity have improved, revenue and free cash flow have declined, indicating challenges in top-line growth and cash generation. The company has managed its leverage better, indicating a cautious approach to capital structure.
Income Statement
65
Positive
The company shows a declining trend in revenue over the past periods, with TTM revenue at $15.16 billion, down from $15.37 billion in 2024. Gross profit margin has decreased from 29.4% in 2024 to 29.4% in TTM, indicating stable cost control. However, the net profit margin has improved to 2.7% in TTM from 1.9% in 2024, owing to better cost management, though still lower than historical figures. EBIT margin is 6.1%, lower than the previous year, reflecting reduced operational efficiency.
Balance Sheet
70
Positive
The balance sheet shows moderate financial leverage with a debt-to-equity ratio of 0.64 in TTM, improved from 0.71 in 2024, indicating better leverage management. The equity ratio is 40.3%, which shows a stable capital structure. Return on equity has improved to 4.4% in TTM, up from 3.4% in 2024, reflecting enhanced profitability from equity.
Cash Flow
60
Neutral
Operating cash flow to net income ratio is 1.88 in TTM, indicating strong cash generation relative to earnings. However, free cash flow has decreased, showing a contraction from $753 million in 2024 to $493 million in TTM, suggesting less cash flexibility. Free cash flow to net income ratio is 1.22, highlighting moderate cash flow relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.16B15.37B15.78B16.95B15.62B14.53B
Gross Profit4.45B4.51B4.10B4.28B5.19B4.97B
EBITDA1.24B1.32B802.70M942.80M2.35B2.00B
Net Income403.10M294.30M-310.50M170.30M1.69B1.23B
Balance Sheet
Total Assets22.49B21.85B23.66B24.96B28.20B23.57B
Cash, Cash Equivalents and Short-Term Investments311.80M290.50M449.40M395.60M142.30M1.38B
Total Debt5.83B6.23B7.30B7.46B6.60B4.25B
Total Liabilities13.43B13.13B14.61B15.25B16.61B12.50B
Stockholders Equity9.06B8.72B9.06B9.71B11.59B11.06B
Cash Flow
Free Cash Flow493.20M753.00M852.60M-1.99B144.00M1.67B
Operating Cash Flow759.20M1.11B1.19B-1.46B663.10M2.02B
Investing Cash Flow-316.90M394.20M-327.70M3.60B-2.62B-1.57B
Financing Cash Flow-458.20M-1.56B-816.00M-2.00B914.60M610.00M

Stanley Black & Decker Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price71.72
Price Trends
50DMA
70.72
Positive
100DMA
66.77
Positive
200DMA
73.62
Negative
Market Momentum
MACD
1.01
Positive
RSI
51.75
Neutral
STOCH
15.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWK, the sentiment is Neutral. The current price of 71.72 is below the 20-day moving average (MA) of 72.66, above the 50-day MA of 70.72, and below the 200-day MA of 73.62, indicating a neutral trend. The MACD of 1.01 indicates Positive momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 15.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SWK.

Stanley Black & Decker Risk Analysis

Stanley Black & Decker disclosed 32 risk factors in its most recent earnings report. Stanley Black & Decker reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Stanley Black & Decker Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$16.97B17.2418.18%2.65%-0.76%-2.62%
78
Outperform
$13.39B27.2137.35%1.22%0.24%0.05%
75
Outperform
$12.31B49.048.56%5.48%16.88%
73
Outperform
$5.38B17.5710.52%1.80%-2.01%-9.95%
70
Outperform
$8.00B20.7625.50%1.84%2.98%54.13%
69
Neutral
$11.50B22.745.38%4.59%-2.71%
64
Neutral
$10.74B15.628.14%2.00%2.79%-14.82%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SWK
Stanley Black & Decker
71.72
-23.94
-25.03%
LECO
Lincoln Electric Holdings
241.96
68.73
39.68%
RBC
RBC Bearings
387.71
102.01
35.71%
SNA
Snap-on
323.45
51.41
18.90%
TKR
Timken Company
76.49
-1.30
-1.67%
TTC
The Toro Company
80.53
-8.71
-9.76%

Stanley Black & Decker Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Stanley Black & Decker Announces New CEO Appointment
Positive
Jun 30, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Stanley Black & Decker Secures New $1.25 Billion Credit
Neutral
Jun 26, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025