SWK Intrinsic Value Calculator – Stanley Black & Decker’s Turnaround on Track, But Growth Prospects Cause Concern
January 4, 2024
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Stanley Black & Decker ($NYSE:SWK) has been making considerable progress in its turnaround efforts, but uncertainty persists regarding the company’s growth prospects. This turnaround is largely due to Stanley Black & Decker’s cost-cutting initiatives, new product launches and successful execution of its strategic initiatives. Despite these successes, there are still lingering concerns about the company’s growth prospects. Stanley Black & Decker’s sales have been flat in recent quarters and it has yet to make any significant progress in penetrating new markets or developing new products. Furthermore, the competitive landscape in the industrial tools and storage industry is highly fragmented, making it difficult for Stanley Black & Decker to gain a significant market share. Overall, Stanley Black & Decker’s recent performance could be seen as a step in the right direction.
However, more needs to be done if the company is to realize its full potential.
Stock Price
On Wednesday, Stanley Black & Decker (STANLEY BLACK & DECKER) stock opened at $96.6 and closed at $94.1, representing a 4.2% decline from the previous closing price of 98.2. Despite the positive outlook for Stanley Black & Decker, analysts and investors remain cautious about the growth prospects for the company due to the macroeconomic uncertainty and the ongoing trade war between the US and China. The company has seen moderate growth in its core businesses such as tools and storage, and recently announced that it will be expanding its product portfolio to address the changing needs of the market. Stanley Black & Decker has also shifted its focus to e-commerce platforms to increase sales and adapt to changing customer demands.
This move has been successful so far, as the company has reported a higher than expected growth in e-commerce sales in recent quarters. Overall, Stanley Black & Decker has made considerable progress in its turnaround efforts, but investors remain concerned about the growth prospects of the company in a highly competitive and uncertain environment. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SWK. More…
| Total Revenues | Net Income | Net Margin |
| 16.03k | -51.1 | 0.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SWK. More…
| Operations | Investing | Financing |
| 1.07k | -331.4 | -839.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SWK. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 24.1k | 14.77k | 60.84 |
Key Ratios Snapshot
Some of the financial key ratios for SWK are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.0% | -39.1% | 0.5% |
| FCF Margin | ROE | ROA |
| 4.5% | 0.6% | 0.2% |
Analysis – SWK Intrinsic Value Calculator
At GoodWhale, we have conducted a fundamental analysis of STANLEY BLACK & DECKER and produced a proprietary Valuation Line to calculate the intrinsic value of its shares. We have found that the intrinsic value of the share is approximately $117.4. Currently, STANLEY BLACK & DECKER stock is trading at $94.1 – a fair price, yet undervalued by 19.9%. This offers an opportunity for investors to take advantage of the stock’s potential upside. More…
Peers
In the business world, competition is inevitable. Large companies compete with other large companies, while smaller companies try to gain market share by taking on the big guys. Such is the case with Stanley Black & Decker Inc, a large American company that manufactures tools, hardware, and security products. Azkoyen SA, The Eastern Co, and Sohgo Security Service Co Ltd are all companies that Stanley Black & Decker competes with in the marketplace.
– Azkoyen SA ($LTS:0DOG)
Azkoyen SA is a Spanish company that manufactures vending machines and other related products. The company has a market cap of 142.86 million as of 2022 and a return on equity of 11.63%. Azkoyen was founded in 1947 and is headquartered in Vitoria-Gasteiz, Spain. The company’s products include vending machines for hot and cold beverages, snacks, and cigarettes; and payment systems, coin changers, and bill acceptors. Azkoyen also offers maintenance and repair services for its products.
– The Eastern Co ($NASDAQ:EML)
The Eastern Co is a publicly traded company with a market capitalization of 133.23M as of 2022. The company has a return on equity of 9.56%. The Eastern Co is engaged in the manufacturing of industrial hardware and metal products. The company’s products include hinges, locks, handles, and other hardware for a variety of applications. The Eastern Co has a diversified customer base and serves a variety of industries, including construction, electronics, and others.
– Sohgo Security Service Co Ltd ($TSE:2331)
Sohgo Security Service Co Ltd is a Japanese security company that provides security services to businesses and households. The company has a market cap of 366.47B as of 2022 and a return on equity of 9.44%. The company offers a wide range of security services, including security guards, home security systems, and alarm monitoring services.
Summary
Stanley Black & Decker (SWK) is a leading industrial tool and home improvement products manufacturer. Recently, the company has undergone a turnaround, which has allowed it to significantly reduce its debt load and generate solid returns for shareholders. Despite this positive news, investors remain concerned about the company’s long-term outlook, citing the continued slowdown in the industrial and construction markets as a potential headwind to future growth.
In addition, some investors are noting that Stanley Black & Decker’s current stock price may be too high given current economic conditions. In light of these risks, investors should carefully consider whether the company is a good investment at this time.
