Stanley Black & Decker Inc

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SWK : NYSE : Industrial Goods
$127.27 -0.35 | -0.27%
Today's Range: 126.72 - 127.81
Avg. Daily Volume: 911900.0
02/28/17 - 10:29 AM ET

Financial Analysis


STANLEY BLACK & DECKER INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. STANLEY BLACK & DECKER INC has weak liquidity. Currently, the Quick Ratio is 0.87 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 9.55% 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 FY16 Q4 FY15
Net Sales ($mil)2920.42845.4
EBITDA ($mil)460.0470.3
EBIT ($mil)357.2364.7
Net Income ($mil)255.5265.5


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1131.8465.4
Total Assets ($mil)15634.915172.3
Total Debt ($mil)3827.43844.2
Equity ($mil)6367.05811.6


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin39.1737.99
EBITDA Margin15.7516.52
Operating Margin12.2312.82
Sales Turnover0.730.74
Return on Assets6.175.82
Return on Equity15.1615.55
Debt Q4 FY16 Q4 FY15
Current Ratio1.711.31
Debt/Capital0.380.4
Interest Expense49.344.6
Interest Coverage7.258.18


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)152.56153.94
Div / share0.580.55
EPS1.711.78
Book value / share41.7337.75
Institutional Own % n/a n/a
Avg Daily Volume908506.01139339.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 27.44 for the Machinery industry and a discount compared to the S&P 500 average of 26.53. To use another comparison, its price-to-book ratio of 3.05 indicates valuation on par with the S&P 500 average of 2.96 and a significant discount versus the industry average of 4.78. 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 19.53 Peers 27.44   SWK 13.06 Peers 15.14

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 16.83 Peers 23.29   SWK 2.83 Peers 1.81

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 3.05 Peers 4.78   SWK 9.59 Peers -17.69

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 1.70 Peers 1.93   SWK 2.10 Peers -2.19

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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