Stanley Black & Decker Inc.

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SWK : NYSE : Consumer Durables
$160.34 up 1.13 | 0.71%
Today's Range: 158.93 - 162.73
Avg. Daily Volume: 995400.0
02/21/18 - 4:02 PM ET

Financial Analysis


STANLEY BLACK & DECKER INC's gross profit margin for the fourth quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. STANLEY BLACK & DECKER INC has weak liquidity. Currently, the Quick Ratio is 0.52 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 30.31% 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 Q4 FY17 Q4 FY16
Net Sales ($mil)3413.52920.4
EBITDA ($mil)0.0460.0
EBIT ($mil)470.3357.2
Net Income ($mil)281.5255.5


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)637.51131.8
Total Assets ($mil)19079.915634.9
Total Debt ($mil)3831.73827.4
Equity ($mil)8297.16367.0


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin36.739.17
EBITDA Margin0.015.75
Operating Margin13.7812.23
Sales Turnover0.670.73
Return on Assets6.426.17
Return on Equity14.7715.16
Debt Q4 FY17 Q4 FY16
Current Ratio1.051.71
Debt/Capital0.320.38
Interest Expense0.049.3
Interest Coverage0.07.25


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)153.35152.56
Div / share0.630.58
EPS1.841.71
Book value / share54.141.73
Institutional Own % n/a n/a
Avg Daily Volume1020740.0939303.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 81.54 for the Machinery industry and a discount compared to the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 2.96 indicates a discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 5.71. 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 19.89 Peers 81.54   SWK 17.31 Peers 20.81

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 16.86 Peers 19.76   SWK 4.05 Peers 1.69

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

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

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SWK 2.96 Peers 5.71   SWK 23.65 Peers 192.95

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.

 

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

However, SWK is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SWK 1.93 Peers 2.24   SWK 11.74 Peers 11.16

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

SWK is keeping pace with its peers on the basis of sales growth.

 

 

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