Stanley Black & Decker (SWK) AI Stock Analysis

• Market Cap: $11.62B
• Dividend Yield: 4.45%
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.19
• Revenue Growth: -2.71%
• EPS Growth: N/A
• Country: US
• Employees: 48,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.08
• Shares Outstanding: 154,792,250
• 10 Day Avg. Volume: 2,306,620
• 30 Day Avg. Volume: 2,137,457
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 3.73
• Enterprise Value/Ebitda: 13.45
• 1Y Price Target: $81.00
• Price Target Upside: 9.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 64 Neutral
• Price Target: $78.00 ▲(5.62% Upside)

Stanley Black & Decker's overall stock score reflects a moderate financial performance with challenges in revenue growth and cash generation. The technical analysis indicates weak momentum, while the valuation is supported by a strong dividend yield. The earnings call highlights ongoing challenges from tariffs and market conditions, though strategic initiatives provide some optimism for future performance.

Positive Factors

Supply Chain Transformation

The supply chain transformation is a strategic initiative that enhances operational efficiency and cost savings, positioning the company for long-term competitiveness and profitability.

DEWALT Brand Performance

Consistent growth of the DEWALT brand underscores strong market demand and effective brand positioning, contributing to sustained revenue streams and competitive advantage.

Leadership Change

The appointment of Bill Beck as President of Tools & Outdoor is expected to drive strategic growth and optimize the brand portfolio, enhancing long-term business performance.

Negative Factors

Revenue Decline

The decline in revenue indicates challenges in maintaining market share and demand, which could impact future growth and financial stability if not addressed.

Tariff Impact

Significant tariff costs strain profitability and cash flow, necessitating strategic adjustments to mitigate long-term financial impacts and maintain competitiveness.

Gross Margin Challenges

Decreased gross margins reflect cost pressures and operational inefficiencies, which could hinder profitability and require strategic initiatives to improve cost management.

Stanley Black & Decker Business Overview & Revenue Model

Company Description

Stanley 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 Money

The 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.16B	15.37B	15.78B	16.95B	15.62B	14.53B
Gross Profit	4.45B	4.51B	4.10B	4.28B	5.19B	4.97B
EBITDA	1.24B	1.32B	802.70M	942.80M	2.35B	2.00B
Net Income	403.10M	294.30M	-310.50M	170.30M	1.69B	1.23B
Balance Sheet
Total Assets	22.49B	21.85B	23.66B	24.96B	28.20B	23.57B
Cash, Cash Equivalents and Short-Term Investments	311.80M	290.50M	449.40M	395.60M	142.30M	1.38B
Total Debt	5.83B	6.23B	7.30B	7.46B	6.60B	4.25B
Total Liabilities	13.43B	13.13B	14.61B	15.25B	16.61B	12.50B
Stockholders Equity	9.06B	8.72B	9.06B	9.71B	11.59B	11.06B
Cash Flow
Free Cash Flow	493.20M	753.00M	852.60M	-1.99B	144.00M	1.67B
Operating Cash Flow	759.20M	1.11B	1.19B	-1.46B	663.10M	2.02B
Investing Cash Flow	-316.90M	394.20M	-327.70M	3.60B	-2.62B	-1.57B
Financing Cash Flow	-458.20M	-1.56B	-816.00M	-2.00B	914.60M	610.00M

Stanley Black & Decker Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 73.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 73.85 is below the 20-day moving average (MA) of 76.21, above the 50-day MA of 73.20, and above the 200-day MA of 73.04, indicating a neutral trend. The MACD of 0.60 indicates Positive momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 6.22 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	78 Outperform	17.84B	17.96	17.50%	2.50%	-0.76%	-2.62%
LECO	78 Outperform	13.06B	26.58	36.45%	1.25%	0.24%	0.05%
RBC	75 Outperform	12.15B	48.40	8.13%	―	5.48%	16.88%
TKR	69 Neutral	5.26B	16.88	9.47%	1.83%	-2.01%	-9.95%
SWK	64 Neutral	$11.62B	23.81	5.38%	4.45%	-2.71%	―
TTC	63 Neutral	7.48B	22.95	23.60%	1.96%	0.78%	-13.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.

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.