Stanley Black & Decker Inc

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SWK : NYSE : Industrial Goods
$120.95 up 0.37 | 0.31%
Today's Range: 119.89 - 121.62
Avg. Daily Volume: 1146800.0
12/08/16 - 4:02 PM ET

Financial Analysis


STANLEY BLACK & DECKER INC's gross profit margin for the third 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 0.62 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 7.01% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)2882.02829.5
EBITDA ($mil)505.3483.5
EBIT ($mil)402.2379.6
Net Income ($mil)248.9228.7


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)420.8293.3
Total Assets ($mil)15720.715870.9
Total Debt ($mil)3917.34304.3
Equity ($mil)6034.55639.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin39.9338.59
EBITDA Margin17.5317.08
Operating Margin13.9613.42
Sales Turnover0.720.71
Return on Assets6.24.81
Return on Equity16.1915.17
Debt Q3 FY16 Q3 FY15
Current Ratio1.231.25
Debt/Capital0.390.43
Interest Expense50.245.2
Interest Coverage8.018.4


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)150.69149.73
Div / share0.580.55
EPS1.681.55
Book value / share40.0537.66
Institutional Own % n/a n/a
Avg Daily Volume1126113.0909043.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 28.70 for the Machinery industry and a discount compared to the S&P 500 average of 25.37. To use another comparison, its price-to-book ratio of 2.98 indicates valuation on par with the S&P 500 average of 2.81 and a discount versus the industry average of 4.42. 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 18.11 Peers 28.70   SWK 12.37 Peers 14.32

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.

 

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 17.02 Peers 23.85   SWK 1.87 Peers 3.05

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 2.98 Peers 4.42   SWK 18.98 Peers -24.69

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 1.58 Peers 1.92   SWK 0.20 Peers -4.91

Discount. 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 discount to 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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