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Stanley Black & Decker
(NYSE:SWK)
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Rating:68Neutral
Price Target:
$101.00
▲(10.67% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by improving financial performance (notably strong current cash generation and stabilizing leverage) and a constructive price trend with shares above key moving averages. Earnings-call takeaways are broadly positive due to raised EPS/FCF guidance and margin progress, but the outlook still carries execution and macro risks (mostly flat revenue guidance, outdoor softness, and tariff/inflation uncertainty). Valuation tempers the overall score given the high P/E despite an attractive dividend yield.
Positive Factors
Cash generation / Free cash flow
Sustained, large free cash flow relative to net income provides durable funding for debt reduction, share repurchases, and reinvestment in brands/platforms. Strong cash conversion supports capital allocation flexibility and resilience through industry cycles over the next 2–6 months and beyond.
Negative Factors
Modest margins
Relatively low operating and net margins leave earnings vulnerable to commodity, labor, and logistics cost shifts. With modest margin cushions, sustained input inflation or mix deterioration could materially pressure profitability and cash flow generation over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation / Free cash flow
Sustained, large free cash flow relative to net income provides durable funding for debt reduction, share repurchases, and reinvestment in brands/platforms. Strong cash conversion supports capital allocation flexibility and resilience through industry cycles over the next 2–6 months and beyond.
Read all positive factors
Stanley Black & Decker Key Performance Indicators (KPIs)
Any
Profit by Segment
Details the profit contribution of each segment, providing insight into which parts of the business are most financially rewarding.
Details the profit contribution of each segment, providing insight into which parts of the business are most financially rewarding.
Data provided by:
The Fly
The FlyStanley Black & Decker (SWK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.28B
Dividend Yield3.51%
Average Volume (3M)1.55M
Price to Earnings (P/E)23.2
Beta (1Y)1.23
Revenue Growth0.57%
EPS Growth29.85%
CountryUS
Employees43,500
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)4.08
Shares Outstanding151,016,650
10 Day Avg. Volume1,333,806
30 Day Avg. Volume1,550,879
Financial Highlights & Ratios
PEG Ratio0.82
Price to Book (P/B)1.28
Price to Sales (P/S)0.77
P/FCF Ratio16.84
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$93.50Price Target Upside2.45% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)5.55
Revenue Forecast (FY)$15.16B
Stanley Black & Decker Business Overview & Revenue Model
Company Description
Stanley Black & Decker, Inc. (SWK) is a global enterprise primarily engaged in two core business segments: Tools & Storage and Industrial operations. Its geographical footprint extends across the United States, Canada, the wider Americas region, F...
How the Company Makes Money
Stanley Black & Decker makes money primarily by manufacturing and selling tools, outdoor equipment, and industrial fastening solutions through multiple channels and geographies.
1) Tools & Outdoor (core revenue and profit driver):
- Product sales...
Stanley Black & Decker Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
Overall the call presented stronger-than-expected operational and margin performance, an EPS beat, meaningful balance-sheet repair (approximately $1.7B debt reduction and share buybacks), raised EPS guidance and clear brand and go-to-market progress (notably DEWALT and power tools). Offsetting weaknesses included headline revenue declines tied to portfolio divestitures, outdoor demand softness, regional headwinds in parts of Europe and geopolitical/import tariff uncertainty with persistent inflationary pressures that may require future price actions. Management emphasized disciplined capital allocation and reinvesting temporary tariff benefits into growth, while maintaining conservative assumptions on future tariff timing.Positive Updates
Revenue and Organic Growth
Total company revenue for Q2 was in line with prior year with organic revenue up 3% year-over-year, driven primarily by U.S. volume strength across retail and commercial & industrial channels.
Negative Updates
Engineered Fastening Headline Revenue Decline
Reported Engineered Fastening revenue declined 18% in Q2 on a headline basis due to the Aerospace Fasteners divestiture, which reduced reported revenue by ~21% despite positive organic growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Organic Growth
Total company revenue for Q2 was in line with prior year with organic revenue up 3% year-over-year, driven primarily by U.S. volume strength across retail and commercial & industrial channels.
Read all positive updates
Company Guidance
Management tightened 2026 guidance with adjusted EPS raised to $5.20–$5.80 (midpoint up ~18% YoY and $0.20 above prior midpoint; ~$0.15 of the increase is below‑the‑line and ~$0.05 reflects net tariff refunds); GAAP EPS is guided to $4.60–$5.45 (with pretax non‑GAAP adjustments $0–$40M, incl. the CAM gain). Revenue is expected to be roughly flat vs. prior year with organic revenue up low‑single‑digits (about evenly split between volume and price); Q3 net sales ~ $3.7B (flat overall) with organic sales +3–4% and Q3 adjusted EPS ~$1.50–$1.60 (planned tax ~22%, share count ~150M). Margin and cash metrics include full‑year adjusted gross margin expanding ~150 bps ex‑tariff (net tariff refunds add ~60–70 bps to FY AGM), 2H AGM targeted at 34–35% (and 35–37% by end of 2028), SG&A ~23% of sales (including ~60 bps of incremental costs), full‑year interest expense ~ $255M, other net ~ $230M, free cash flow raised to $600–800M (or $800–1,000M excluding CAM fees/taxes) with H1 FCF ~ $250M, working capital reduction target ~$200M and inventory toward ~135 days, and net debt/adjusted EBITDA targeted at ~2.5x by year‑end after $1.7B of debt paydown and $250M of buybacks (3.2M shares), with only the Q2 tariff refunds included in guidance.Stanley Black & Decker Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
67
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.25B | 15.13B | 15.37B | 15.78B | 16.95B | 15.28B |
| Gross Profit | 4.84B | 4.52B | 4.60B | 4.10B | 4.10B | 5.08B |
| EBITDA | 1.41B | 1.27B | 1.32B | 802.70M | 942.80M | 2.35B |
| Net Income | 620.50M | 401.90M | 286.30M | -281.70M | -133.70M | 1.69B |
Balance Sheet | ||||||
| Total Assets | 20.09B | 21.24B | 21.85B | 23.66B | 24.96B | 28.18B |
| Cash, Cash Equivalents and Short-Term Investments | 592.40M | 280.10M | 290.50M | 449.40M | 395.60M | 142.10M |
| Total Debt | 4.76B | 6.00B | 6.59B | 7.30B | 7.57B | 6.71B |
| Total Liabilities | 11.13B | 12.19B | 13.13B | 14.61B | 15.25B | 16.59B |
| Stockholders Equity | 8.96B | 9.05B | 8.72B | 9.06B | 9.71B | 11.59B |
Cash Flow | ||||||
| Free Cash Flow | 1.29B | 687.90M | 753.00M | 852.60M | -1.99B | 144.00M |
| Operating Cash Flow | 1.55B | 971.20M | 1.11B | 1.19B | -1.46B | 663.10M |
| Investing Cash Flow | 1.56B | -262.80M | 394.20M | -327.70M | 3.57B | -2.62B |
| Financing Cash Flow | -2.81B | -793.10M | -1.56B | -816.00M | -1.97B | 918.70M |
Stanley Black & Decker Technical Analysis
Positive
91.26
Price Trends
87.30
Positive
80.10
Positive
77.39
Positive
Market Momentum
3.57
Negative
72.43
Negative
98.82
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 91.26 is below the 20-day moving average (MA) of 91.87, above the 50-day MA of 87.30, and above the 200-day MA of 77.39, indicating a bullish trend. The MACD of 3.57 indicates Negative momentum. The RSI at 72.43 is Negative, neither overbought nor oversold. The STOCH value of 98.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $21.23B | 20.60 | 17.41% | 2.34% | 4.02% | 4.39% | |
74 Outperform | $8.75B | 26.40 | 24.05% | 1.65% | 2.65% | -11.03% | |
72 Outperform | $9.56B | 31.12 | 8.13% | 1.00% | 3.31% | -5.18% | |
70 Outperform | $14.24B | 25.87 | 37.21% | 1.24% | 9.14% | 12.52% | |
70 Outperform | $17.44B | 54.21 | 9.66% | ― | 17.31% | 27.05% | |
68 Neutral | $14.28B | 23.18 | 6.90% | 3.64% | 0.57% | 29.85% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
SWK
Stanley Black & Decker
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Stanley Black & Decker Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Stanley Black & Decker Enhances Liquidity with New Credit Facilities
Positive
Jun 24, 2026
On June 18, 2026, Stanley Black Decker entered into a new 364-day $1.0 billion revolving credit agreement, replacing its prior 364-day facility dated June 23, 2025, with capacity for drawings by designated subsidiaries in U.S. dollars or euros an...
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.