Stanley Black & Decker Inc

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SWK : NYSE : Industrial Goods
$143.05 | %
Today's Range: 141.82 - 143.1
Avg. Daily Volume: 1040800.0
06/23/17 - 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 has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. 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)466.4414.0
EBIT ($mil)364.9313.9
Net Income ($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 Margin40.6438.99
EBITDA Margin16.6215.49
Operating Margin13.0111.75
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 Expense51.347.3
Interest Coverage7.116.64


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)152.97150.12
Div / share0.580.55
EPS2.591.28
Book value / share44.5337.76
Institutional Own % n/a n/a
Avg Daily Volume1026339.0886671.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 28.15 for the Machinery industry and a discount compared to the S&P 500 average of 25.73. To use another comparison, its price-to-book ratio of 3.17 indicates valuation on par with the S&P 500 average of 3.08 and a significant discount versus the industry average of 5.05. 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 18.03 Peers 28.15   SWK 14.99 Peers 16.32

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.

 

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 17.45 Peers 22.24   SWK 1.70 Peers 1.29

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.

 

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 3.17 Peers 5.05   SWK 27.15 Peers 23.26

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 exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SWK 1.87 Peers 2.08   SWK 2.91 Peers 12.41

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SWK significantly trails its peers on the basis of sales growth

 

 

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