Stanley Black & Decker Inc.
Find Ratings ReportsSTANLEY BLACK & DECKER INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the subsector, the net income growth did not. STANLEY BLACK & DECKER INC has very weak liquidity. Currently, the Quick Ratio is 0.30 which clearly 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 decreased by 6.75% 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 | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 3736.5 | 3986.8 |
EBITDA ($mil) | 404.6 | 347.9 |
EBIT ($mil) | 256.2 | 200.8 |
Net Income ($mil) | -304.4 | -45.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 454.0 | 404.9 |
Total Assets ($mil) | 23663.8 | 24963.3 |
Total Debt ($mil) | 7683.5 | 7897.5 |
Equity ($mil) | 9056.1 | 9712.1 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 32.51 | 27.03 |
EBITDA Margin | 10.82 | 8.72 |
Operating Margin | 6.86 | 5.04 |
Sales Turnover | 0.67 | 0.68 |
Return on Assets | -1.31 | 4.25 |
Return on Equity | -3.11 | 1.69 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.19 | 1.21 |
Debt/Capital | 0.46 | 0.45 |
Interest Expense | 139.3 | 113.9 |
Interest Coverage | 1.84 | 1.76 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 153.62 | 152.98 |
Div / share | 0.81 | 0.8 |
EPS | -1.84 | -0.72 |
Book value / share | 58.95 | 63.48 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1252714.0 | 1495456.0 |
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.52 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 15.81. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, STANLEY BLACK & DECKER INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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SWK NM | Peers 34.89 | SWK 11.55 | Peers 35.56 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. SWK's P/E is negative making this valuation measure meaningless. |
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 significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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SWK 15.73 | Peers 25.65 | SWK NA | Peers 5.15 | |||||||||||||||||||||
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. |
Neutral. 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. Ratio not available. |
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Price/Book |
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Earnings Growth |
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SWK 1.52 | Peers 15.81 | SWK -294.84 | Peers 20.44 | |||||||||||||||||||||
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. |
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Price/Sales |
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Sales Growth |
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SWK 0.87 | Peers 8.34 | SWK -6.89 | Peers 14.92 | |||||||||||||||||||||
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 significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. SWK significantly trails its peers on the basis of sales growth. |
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