Quality Investor

Stanley Black & Decker, Inc.

Rank #315Value

SWK · NYSE · Industrials

Stanley Black & Decker, Inc. (SWK) — Rank #315 by gross profitability (GP/assets 0.23) · ROE 4.5% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0000093556 · all metrics point-in-time as of the filing date.

About

Stanley Black & Decker, Inc. provides hand tools, power tools, outdoor products, and related accessories in the United States, Canada, Other Americas, Europe, and Asia.

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Its Tools & Outdoor segment offers professional grade corded and cordless electric power tools and equipment, including drills, impact wrenches and drivers, grinders, saws, routers, concrete prep and placement tools, and sanders; pneumatic tools and fasteners; corded and cordless electric power tools; household power tools, hand-held vacuums, and small appliances; leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels, and industrial and automotive tools; drill, screwdriver, router bits, abrasives, saw blades, and threading products; tool boxes, sawhorses, medical cabinets, and engineered storage solutions; and electric and gas-powered lawn and garden products. This segment sells its products under the DEWALT, CRAFTSMAN, CUB ADET, STANLEY, BLACK+DECKER, and HUSTLER brands through retailers, third-party distributors, independent dealers, and a direct sales force. Its Industrial segment provides threaded fasteners, blind rivets and tools, blind inserts and tools, drawn arc weld studs and systems, engineered plastic and mechanical fasteners, self-piercing riveting systems, precision nut running systems, micro fasteners, high-strength structural fasteners, axel swage, latches, heat shields, pins, couplings, fitting, and other engineered products. This segment sells its products through direct sales force and third-party distributors to the automotive, manufacturing, electronics, construction, aerospace, and other industries. Stanley Black & Decker, Inc. has a strategic partnership with I4F Licensing Nv. The company was formerly known as The Stanley Works and changed its name to Stanley Black & Decker, Inc. in March 2010.

The company was founded in 1843 and is headquartered in New Britain, Connecticut.

Industry
Tools & Accessories
Sector
Industrials
State
CT
Filer Category
Large accelerated filer
Fiscal Year End
January 2

Price History

SWK-43.9% · -10.9% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$13.19B

P/E (annual)

33.0

P/S (annual)

0.9

P/B

1.5

P/OCF (annual)

13.6

Shareholder Yield

3.4%

Employees

41,000

Industry

Tools & Accessories

Exchange

NYSE

Signal Flags

2 green1 yellow1 red
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why
Revenue declining YoYRevenue contracted year over year

Quality Profile

Profitability

1/1 pass
GP / assets
0.23
Return on equity
4.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.22
Current ratio
1.43×
Net cash
-$4.17B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.6%

Growth

1/2 pass
Revenue growth
-1.5%
Piotroski F-Score
7 / 9
Share dilution
0.4%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

3 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

7.2%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 0.4% — per-share value needs a total required return of 7.6% once share-count change is priced in.

vs. own 6-year median revenue growth: -0.4%

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

2.9%

r = 10% (base)

7.2%

r = 12%

10.9%

Net debt / market cap: 31.4%— material leverage inflates the implied growth read.

Base FCF: $687.9M3Y mean FCF: $764.5M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

33.7xExpensive
12.8xmed 22.1x44.6x

P / S

Price / revenue per share

0.9xFair
0.8xmed 1.5x1.8x

P / B

Price / book value per share

1.5xCheap
1.4xmed 2.3x3.2x

P / GP

Price / gross profit per share

3.0xCheap
2.9xmed 4.3x5.4x

P / FCF

Price / free cash flow per share

19.7xFair
15.5xmed 22.0x181.8x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.23

Primary signal (Novy-Marx).

10th of 15 SIC 34 peers

Return on equity

4.5%

Gross margin

30.3%

11th of 15 SIC 34 peers

Revenue growth (YoY)

-1.5%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-3.7%

Revenue CAGR (5Y)

3.5%

Earnings CAGR (3Y)

-27.7%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.22

13th of 15 SIC 34 peers (best = lowest)

Current ratio

1.43×

13th of 15 SIC 34 peers

Quick ratio

Net cash

-$4.17B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$687.90M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.71

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.6%

Stock-based comp intensity.

Dividend safety

Composite score

1.2 / 5

Weak
Payout ratio
124.6%0/5 Weak
FCF coverage
1.37×2/5 Fair
Dividend growth streak
3 yr2/5 Fair
Balance-sheet health
D/E 1.22 · IC N/A1/5 Weak

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Value
Capital Return
Decline