Stanley Black & Decker, Inc. (SWK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Snap-On, Inc.

Fastenal Co.

Xylem, Inc.

Stanley Black & Decker, Inc.

W.W. Grainger, Inc.

Ingersoll Rand, Inc.

Fortive Corp.

The L.S. Starrett Co.

The Eastern Co.

P&F Industries, Inc.

Intelligent Living Application Group, Inc.

Why is Stanley Black & Decker, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Positive results in Jun 25

NET PROFIT(HY) At USD 296.37 MM has Grown at 165.18%
ROCE(HY) Highest at 5.38%
INVENTORY TURNOVER RATIO(HY) Highest at 2.33 times

With ROCE of 8.64%, it has a fair valuation with a 1.16 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -16.06%, its profits have risen by 3% ; the PEG ratio of the company is 7

Below par performance in long term as well as near term

Along with generating -16.06% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Stanley Black & Decker, Inc. should be less than 10%
Overall Portfolio exposure to Industrial Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Stanley Black & Decker, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Stanley Black & Decker, Inc.

-16.06%

-0.27

45.11%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.16%

EBIT Growth (5y)

-7.28%

EBIT to Interest (avg)

5.65

Debt to EBITDA (avg)

3.89

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

0.98

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

172.28%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

9.05%

ROE (avg)

9.53%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.28

EV to EBIT

13.44

EV to EBITDA

9.34

EV to Capital Employed

1.16

EV to Sales

1.16

PEG Ratio

6.97

Dividend Yield

3.56%

ROCE (Latest)

8.64%

ROE (Latest)

7.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

NET PROFIT(HY)

At USD 296.37 MM has Grown at 165.18%

ROCE(HY)

Highest at 5.38%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.33 times

DIVIDEND PER SHARE(HY)

Highest at USD 9.93

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 275.6

OPERATING PROFIT(Q)

Lowest at USD 353.6 MM

RAW MATERIAL COST(Y)

Grown by 9.68% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 8.96 %

Here's what is working for Stanley Black & Decker, Inc.

Net Profit

At USD 296.37 MM has Grown at 165.18%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Inventory Turnover Ratio

Highest at 2.33 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at USD 9.93 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Here's what is not working for Stanley Black & Decker, Inc.

Interest Coverage Ratio

Lowest at 275.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 353.6 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 8.96 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 9.68% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales