Stanley Black & Decker (SWK) AI Stock Analysis

• Market Cap: $11.06B
• Dividend Yield: 4.59%
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): 22.6
• Beta (1Y): 1.23
• Revenue Growth: -2.71%
• EPS Growth: N/A
• Country: US
• Employees: 48,000
• Sector: Industrials
• Sector Strength: 85
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.08
• Shares Outstanding: 154,792,250
• 10 Day Avg. Volume: 2,326,707
• 30 Day Avg. Volume: 2,050,101
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 3.73
• Enterprise Value/Ebitda: 13.45
• 1Y Price Target: $81.50
• Price Target Upside: 14.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 66 Neutral
• Price Target: $77.00 ▲(7.80% Upside)

Stanley Black & Decker's overall stock score reflects a moderate financial performance with improved profitability but declining revenue and cash flow. Technical indicators suggest neutral momentum, while valuation is balanced by a high dividend yield. The earnings call highlighted both strategic strengths and operational challenges, contributing to a mixed outlook.

Positive Factors

Earnings Potential

A path has emerged for SWK to exceed its EPS guidance, marking a shift from previous downside risk concerns.

Leadership and Strategy

The CEO transition, with COO Chris Nelson replacing Don Allan, is seen as strategic continuity, boosting confidence in commercial execution and production innovation.

Negative Factors

Economic Environment

Major downside risks include the onset of a consumer recession, which could impact overall demand and financial performance.

Tariff Implications

A sharp move higher in tariffs could further depress margins, posing a risk to financial stability.

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

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 demonstrates solid financial performance with effective cost management and profitability, despite a decline in revenue. The balance sheet shows balanced leverage, but there's room for improvement in returns on equity. Cash flow generation is strong, although past volatility suggests the need for 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	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: Positive
• Last Price: 71.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 71.43 is above the 20-day moving average (MA) of 70.12, above the 50-day MA of 68.79, and below the 200-day MA of 75.75, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 55.85 is Neutral, neither overbought nor oversold. The STOCH value of 84.54 is Negative, 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
RBC	79 Outperform	$12.78B	50.94	8.56%	―	5.48%	16.88%
SNA	78 Outperform	$16.98B	17.35	18.18%	2.54%	-0.76%	-2.62%
LECO	74 Outperform	$13.36B	27.23	37.35%	1.22%	0.24%	0.05%
TKR	72 Outperform	$5.36B	17.49	10.52%	1.78%	-2.01%	-9.95%
HLMN	71 Outperform	$1.95B	89.96	1.82%	―	1.93%	260.13%
SWK	66 Neutral	$11.06B	22.65	5.38%	4.59%	-2.71%	―
Sector *	60 Neutral	kr42.62B	14.19	1.95%	2.34%	0.36%	-1.51%

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.