Stanley Black & Decker Inc

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SWK : NYSE : Industrial Goods
$121.70 | %
Today's Range: 121.14 - 122.19
Avg. Daily Volume: 943,300
07/29/16 - 4:00 PM ET

Financial Analysis


STANLEY BLACK & DECKER INC's gross profit margin for the second quarter of its fiscal year 2016 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 weak liquidity. Currently, the Quick Ratio is 0.58 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)2932.42866.9
EBITDA ($mil)564.0514.7
EBIT ($mil)462.0412.7
Net Income ($mil)271.5227.2


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)568.2391.9
Total Assets ($mil)15740.815998.8
Total Debt ($mil)4172.04263.7
Equity ($mil)5803.55784.2


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin41.9840.43
EBITDA Margin19.2317.95
Operating Margin15.7614.4
Sales Turnover0.720.71
Return on Assets6.064.82
Return on Equity16.5715.0
Debt Q2 FY16 Q2 FY15
Current Ratio1.161.28
Debt/Capital0.420.42
Interest Expense0.046.2
Interest Coverage0.08.93


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)150.12153.24
Div / share0.550.52
EPS1.841.54
Book value / share38.6637.75
Institutional Own % n/a n/a
Avg Daily Volume953601.01354519.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.52 for the Machinery industry and a discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 3.12 indicates a premium versus the S&P 500 average of 2.82 and a discount versus the industry average of 3.81. 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 18.68 Peers 24.52   SWK 12.53 Peers 15.89

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

SWK is trading at a discount to its peers.

 

Discount. 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 discount 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 17.09 Peers 21.65   SWK 2.31 Peers 3.62

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.

 

Discount. 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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SWK 3.12 Peers 3.81   SWK 16.84 Peers -27.29

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 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 1.60 Peers 1.64   SWK -0.70 Peers -5.07

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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