Fact based stock research
Stanley Black & Decker (NYSE:SWK)

US8545021011

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Stanley Black & Decker stock research in summary

stanleyblackanddecker.com

ANALYSIS: With an Obermatt Combined Rank of 50 (better than 50% compared with investment alternatives), Stanley Black & Decker (Industrial Machinery, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Stanley Black & Decker are a good value (attractively priced) with a consolidated Value Rank of 81 (better than 81% of alternatives), show above-average growth (Growth Rank of 55) but are riskily financed (Safety Rank of 15), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 50, is a buy recommendation based on Stanley Black & Decker's financial characteristics. As the company Stanley Black & Decker's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 81) and above-average growth (Obermatt Growth Rank of 55), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 15) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	81
Growth Rank	55
Safety Rank	15
Combined Rank	50

Country	USA
Industry	Industrial Machinery
Index	Dividends USA, Diversity USA, Human Rights, Low Waste, Renewables Users, Recycling, S&P 500
Size class	XX-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Stanley Black & Decker

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	73	79	80	81
GROWTH
GROWTH	57	55	55	55
SAFETY
SAFETY	10	67	22	15
SENTIMENT
SENTIMENT	n/a	18	10	^new
360° VIEW
360° VIEW	n/a	65	31	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 29-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Stanley Black & Decker is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	73	79	80	81
GROWTH
GROWTH	57	55	55	55
SAFETY
SAFETY	10	67	22	15
COMBINED
COMBINED	37	85	55	50

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Stanley Black & Decker the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 81 (better than 81% compared with alternatives) for 2024, Stanley Black & Decker shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Stanley Black & Decker. Price-to-Sales is 56 which means that the stock price compared with what market professionals expect for future sales is lower than for 56% of comparable companies, indicating a good value for Stanley Black & Decker's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 55% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 76. Compared with other companies in the same industry, dividend yields of Stanley Black & Decker are expected to be higher than for 100% of all competitors (a Dividend Yield rank of 100). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 81, is a buy recommendation based on Stanley Black & Decker's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Stanley Black & Decker based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	76	53	54	56
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	78	67	32	55
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	54	53	81	76
DIVIDEND YIELD
DIVIDEND YIELD	64	97	100	100
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	73	79	80	81

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Stanley Black & Decker; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), Stanley Black & Decker shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, where half of the indicators are below and half above average for Stanley Black & Decker. Profit Growth, with a rank of 96 (better than 96% of its competitors), and Capital Growth, with a rank of 59, are both positive, which is a healthy sign for positive development. But Sales Growth has only a rank of 23, which means that, currently, professionals expect the company to grow less than 77% of its competitors, and Stock Returns are at a rank of 35. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, is a buy recommendation for growth and momentum investors. Stock returns that are a thing of the past can be less of a problem. Below-average revenue growth may be caused by divestments of underperforming businesses. If that is the case, then the positive developments of profit and capital growth are signs of a company with growth potential. If these are the reasons, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	40	74	28	23
PROFIT GROWTH
PROFIT GROWTH	47	50	6	96
CAPITAL GROWTH
CAPITAL GROWTH	n/a	24	91	59
STOCK RETURNS
STOCK RETURNS	46	63	63	35
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	57	55	55	55

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Stanley Black & Decker.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 15 (better than 15% compared with alternatives), the company Stanley Black & Decker has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Stanley Black & Decker is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Stanley Black & Decker. Liquidity is at 25, meaning that the company generates less profit to service its debt than 75% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 36, meaning the company has an above-average debt-to-equity ratio. It has more debt than 64% of its competitors. Finally, Refinancing is at a rank of 37 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 15 (worse than 85% compared with alternatives), Stanley Black & Decker has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Stanley Black & Decker because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	18	68	36	36
REFINANCING
REFINANCING	36	6	36	37
LIQUIDITY
LIQUIDITY	40	76	39	25
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	10	67	22	15

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Stanley Black & Decker and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	44	3	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	46	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	24	16	^new
MARKET PULSE
MARKET PULSE	n/a	28	27	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	18	10	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Stanley Black & Decker.
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