Stanley Black & Decker Inc

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SWK : NYSE : Industrial Goods
$136.15 | %
Today's Range: 135.99 - 137.5121
Avg. Daily Volume: 882300.0
04/28/17 - 4:01 PM ET

Financial Analysis


STANLEY BLACK & DECKER INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. STANLEY BLACK & DECKER INC has very weak liquidity. Currently, the Quick Ratio is 0.50 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 20.16% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)2805.62672.1
EBITDA ($mil)0.0414.0
EBIT ($mil)398.1313.9
Net Income ($mil)393.1189.4


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)378.0352.2
Total Assets ($mil)18662.115607.4
Total Debt ($mil)4983.04306.2
Equity ($mil)6811.55668.6


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin38.2138.99
EBITDA Margin0.015.49
Operating Margin14.1911.75
Sales Turnover0.620.72
Return on Assets6.265.83
Return on Equity17.1616.34
Debt Q1 FY17 Q1 FY16
Current Ratio1.041.09
Debt/Capital0.420.43
Interest Expense0.047.3
Interest Coverage0.06.64


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)152.56150.12
Div / share0.580.55
EPS2.591.28
Book value / share44.6537.76
Institutional Own % n/a n/a
Avg Daily Volume889418.01100280.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 28.37 for the Machinery industry and a discount compared to the S&P 500 average of 24.84. To use another comparison, its price-to-book ratio of 3.08 indicates valuation on par with the S&P 500 average of 2.98 and a significant discount versus the industry average of 4.88. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, STANLEY BLACK & DECKER INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SWK 17.59 Peers 28.37   SWK 14.63 Peers 16.03

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SWK is trading at a significant discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SWK is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SWK 17.20 Peers 22.23   SWK 1.75 Peers 1.67

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SWK is trading at a discount to its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SWK trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SWK 3.08 Peers 4.88   SWK 27.15 Peers -10.74

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SWK is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

SWK is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SWK 1.82 Peers 1.97   SWK 2.91 Peers -1.46

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SWK is trading at a valuation on par with its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SWK has a sales growth rate that significantly exceeds its peers.

 

 

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