Is Stanley Black & Decker a Good Investment?

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SWK Intrinsic Value – Stanley Black & Decker ($NYSE:SWK) is a global leader in tools, storage, and security solutions. The company has a wide array of products that cater to both professional and DIY users. It also has a strong presence in the industrial and commercial sectors. Despite its strong product portfolio, Stanley Black & Decker has been facing some challenges in recent years. The company’s growth has been sluggish, and it has been struggling to generate profits.

In addition, the company’s share price has been volatile, making it a risky investment. Dear readers/followers, I actually haven’t written about Stanley Black & Decker before, despite owning the stock. The reason is fairly simple. I’ve been unsure about when would be a good time to invest more heavily. I’ve held a watchlist, slightly larger, position for some time. The company reported mixed results for its most recent quarter. Revenue was up 2% year-over-year, but earnings per share declined 4%. Stanley Black & Decker attributed the earnings decline to higher costs associated with its new product launches. The company is betting on strong demand for its new products, including its power tools and storage solutions. I would recommend waiting for more clarity on the company’s direction before investing.

Market Price

On Monday, the company’s stock opened at $75.7 and closed at $76.5, up by 2.5% from prior closing price of 74.6. Investors are confident in the company’s future as it continues to grow and expand its operations. The company is a leader in the tool industry, and its products are used by professionals and homeowners alike.

The company’s recent stock performance indicates that it is a good investment at the moment. The company is expected to continue to perform well in the future, making it a good choice for investors.

VI Analysis – SWK Intrinsic Value Calculator

The intrinsic value of a company’s stock is a reflection of the company’s long-term potential. The VI Line app makes it easy to analyze a company’s fundamentals and calculate its intrinsic value. Based on the app’s analysis, the intrinsic value of Stanley Black & Decker’s stock is around $160.4. However, the stock is currently traded at $76.5, which represents a 52% discount to its intrinsic value.

VI 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

If you’re looking for a stable investment with a history of solid performance, Stanley Black & Decker may be a good option for you. The company has a long track record of paying dividends and increasing shareholder value. While there may be some ups and downs in the short-term, over the long haul Stanley Black & Decker has shown itself to be a reliable investment.