Stanley Black & Decker (SWK) AI Stock Analysis

• Market Cap: $12.51B
• Dividend Yield: 4.42%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 27.9
• Beta (1Y): 1.27
• Revenue Growth: -1.40%
• EPS Growth: N/A
• Country: US
• Employees: 48,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.43
• Shares Outstanding: 154,884,960
• 10 Day Avg. Volume: 949,267
• 30 Day Avg. Volume: 1,398,010
• PEG Ratio: -0.21
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 16.11
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 3.94
• Enterprise Value/Ebitda: 13.13
• 1Y Price Target: $84.89
• Price Target Upside: 7.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $81.00 ▲(2.94% Upside)

The score is driven primarily by moderate financial performance—solid balance sheet stability but weak margins and cash conversion—partly offset by constructive technical momentum. Valuation is supported by a strong dividend but tempered by a higher P/E, while the earnings call and CAM divestiture add credibility to margin improvement and deleveraging plans despite ongoing demand and tariff headwinds.

Positive Factors

Cost Reduction Initiatives

Successful cost reduction efforts enhance margin sustainability and operational efficiency, positioning the company for improved profitability.

Strategic Divestiture

The divestiture allows focus on core operations and debt reduction, improving financial flexibility and strategic alignment with long-term goals.

Brand Performance

Strong brand performance supports market position and revenue growth, driven by innovation and market activation strategies.

Negative Factors

Consumer Product Safety Violations

Legal challenges and potential penalties could impact brand reputation and operational focus, posing risks to long-term business stability.

Flat Revenue Growth

Stagnant revenue growth indicates challenges in market demand and competitive pressures, potentially affecting future profitability.

Weak Profitability

Low profitability margins suggest inefficiencies and competitive challenges, limiting the company's ability to reinvest and grow sustainably.

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 through several key streams, primarily from the sale of its tools and storage products in both consumer and industrial markets. The company operates in three main segments: Tools & Storage, Industrial, and Security. The Tools & Storage segment is the largest, contributing significantly to overall sales through direct sales to retailers, distributors, and online platforms. The Industrial segment focuses on manufacturing and engineering solutions, generating revenue from contracts with large corporations and governments. The Security segment offers commercial electronic security systems and solutions, contributing to recurring revenue through service contracts. Additionally, strategic partnerships with retailers and distributors enhance market reach and brand visibility, further bolstering revenue generation. Factors such as innovation, brand loyalty, and a strong global presence also play crucial roles in driving the company's earnings.

Stanley Black & Decker Financial Statement Overview

Summary

Stanley Black & Decker has shown mixed financial performance. While profitability has improved in terms of net profit margin and return on equity, revenue and free cash flow have declined, indicating potential challenges in top-line growth and cash generation. The company has managed its leverage better, indicating a cautious approach to capital structure. Overall, the financial health is moderate with areas needing attention for growth and efficiency.

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	15.17B	15.37B	15.78B	16.95B	15.28B	13.06B
Gross Profit	4.46B	4.60B	4.10B	4.10B	5.08B	4.45B
EBITDA	1.34B	1.32B	802.70M	942.80M	2.35B	2.00B
Net Income	438.60M	286.30M	-281.70M	-133.70M	1.69B	1.24B
Balance Sheet
Total Assets	21.75B	21.85B	23.66B	24.96B	28.18B	23.57B
Cash, Cash Equivalents and Short-Term Investments	268.30M	290.50M	449.40M	395.60M	142.10M	1.24B
Total Debt	6.06B	6.59B	7.30B	7.57B	6.71B	4.36B
Total Liabilities	12.78B	13.13B	14.61B	15.25B	16.59B	12.50B
Stockholders Equity	8.98B	8.72B	9.06B	9.71B	11.59B	11.06B
Cash Flow
Free Cash Flow	369.60M	753.00M	852.60M	-1.99B	144.00M	1.67B
Operating Cash Flow	694.60M	1.11B	1.19B	-1.46B	663.10M	2.02B
Investing Cash Flow	-296.60M	394.20M	-327.70M	3.57B	-2.62B	-1.58B
Financing Cash Flow	-412.00M	-1.56B	-816.00M	-1.97B	918.70M	615.90M

Stanley Black & Decker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 78.69 is above the 20-day moving average (MA) of 75.12, above the 50-day MA of 70.78, and above the 200-day MA of 68.61, indicating a bullish trend. The MACD of 2.00 indicates Negative momentum. The RSI at 64.08 is Neutral, neither overbought nor oversold. The STOCH value of 82.24 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
SNA	78 Outperform	$18.60B	18.75	17.96%	2.52%	0.24%	-1.85%
LECO	77 Outperform	$13.85B	26.97	38.11%	1.22%	3.27%	10.89%
RBC	77 Outperform	$15.04B	57.03	8.54%	―	8.27%	19.06%
TKR	76 Outperform	$6.34B	21.51	9.80%	1.61%	-1.01%	-12.13%
TTC	69 Neutral	$8.17B	26.37	21.04%	1.95%	-1.53%	-21.19%
SWK	67 Neutral	$12.51B	27.94	4.92%	4.42%	-1.40%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Stanley Black & Decker Corporate Events

Stanley Black & Decker to Sell CAM to Howmet

On December 22, 2025, Stanley Black & Decker announced a definitive agreement to sell its Consolidated Aerospace Manufacturing (CAM) subsidiary, a producer of fasteners, fittings and engineered components for aerospace and defense, to Howmet Aerospace for approximately $1.8 billion in cash, implying a purchase price of $1.805 billion subject to customary adjustments. CAM, expected to generate $405 million to $415 million in revenue in fiscal 2025 with an adjusted EBITDA margin in the high teens, will remain in continuing operations until the transaction closes, which is anticipated in the first half of 2026 pending regulatory approvals and other standard conditions; Stanley Black & Decker plans to apply the proceeds, estimated at $1.525 billion to $1.6 billion after tax, to pay down debt and move toward a target leverage ratio of 2.5 times net debt to adjusted EBITDA, sharpening its focus on core tool and outdoor brands and signaling continued portfolio pruning aimed at shareholder value and a more flexible capital allocation strategy.

The most recent analyst rating on (SWK) stock is a Hold with a $75.00 price target. To see the full list of analyst forecasts on Stanley Black & Decker stock, see the SWK Stock Forecast page.

Stanley Black & Decker Appoints New Chief Administrative Officer

On October 29, 2025, Stanley Black & Decker announced the appointment of Patrick D. Hallinan as Chief Administrative Officer, effective January 1, 2026, alongside his roles as Executive Vice President and Chief Financial Officer. This change comes with a significant compensation adjustment, reflecting his increased responsibilities. Additionally, the company elected Mary A. Laschinger to its Board of Directors, effective November 1, 2025. Laschinger, with her extensive experience in global manufacturing and distribution, is expected to contribute significantly to the company’s strategic growth and operational excellence, further solidifying its industry leadership.

The most recent analyst rating on (SWK) stock is a Hold with a $77.00 price target. To see the full list of analyst forecasts on Stanley Black & Decker stock, see the SWK Stock Forecast page.

Stanley Black & Decker’s General Counsel Resigns

Janet M. Link, Senior Vice President, General Counsel and Secretary of Stanley Black & Decker, announced her resignation effective November 30, 2025, to pursue a new professional opportunity. This leadership change may impact the company’s legal and strategic operations, potentially influencing its market positioning and stakeholder relations.

The most recent analyst rating on (SWK) stock is a Hold with a $80.00 price target. To see the full list of analyst forecasts on Stanley Black & Decker stock, see the SWK Stock Forecast page.