SWK Stock Intrinsic Value – Stanley Black & Decker to Divest Attachment Tools Unit
December 16, 2023
☀️Trending News
Stanley Black & Decker ($NYSE:SWK), a leading provider of tools and storage, security and engineered fastening solutions, has announced its decision to divest its attachment tools business. This move is expected to enable Stanley Black & Decker to focus its resources and operational expertise on its core core platforms and drive future growth. Stanley Black & Decker is a leading global provider of tools and storage, security and engineered fastening systems with a wide variety of products ranging from power tools, hand tools, and fastening systems to home storage products. Its products are sold under leading brands such as DeWalt, Stanley, Black & Decker, Craftsman, and Facom.
Stanley Black & Decker also offers full line solutions for professional, industrial, construction and consumer applications. The company’s stock is listed on the New York Stock Exchange (NYSE: SWK).
Price History
On Friday, Stanley Black & Decker (SWK) announced that it will be divesting its Attachment Tools Unit business. The news came as a surprise to many, and the market reacted accordingly: SWK’s stock opened at $101.4 and closed at $98.6, down by 2.8% from last closing price of 101.5. This divestment marks a strategic shift for the company, as it aims to focus on its core businesses and brand building initiatives.
The move also comes as a sign of SWK’s efforts to reduce costs and strengthen its balance sheet in order to emerge stronger from the current economic downturn. Though the future of the Attachment Tools business remains uncertain, it is clear that SWK is continuing to look for ways to optimize operations and maximize profits. 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 Stock Intrinsic Value
As GoodWhale, we have conducted a comprehensive analysis of STANLEY BLACK & DECKER’s fundamentals and have come to the conclusion that the fair value of their stock is around $118.2. This figure has been obtained using our proprietary Valuation Line, which takes into account the company’s financials as well as its historical performance. Currently, STANLEY BLACK & DECKER stock is being traded at $98.6, meaning it is undervalued by 16.6%. This presents an opportunity for investors to purchase the company’s stock at a relatively cheap price. More…
Peers
In the business world, competition is inevitable. Large companies compete with other large companies, while smaller companies try to gain market share by taking on the big guys. Such is the case with Stanley Black & Decker Inc, a large American company that manufactures tools, hardware, and security products. Azkoyen SA, The Eastern Co, and Sohgo Security Service Co Ltd are all companies that Stanley Black & Decker competes with in the marketplace.
– Azkoyen SA ($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 recently announced that it will be selling its attachment tools unit as part of its continuous effort to streamline its business. This decision shows Stanley Black & Decker’s commitment to restructuring and investing in core businesses. The move is expected to improve the company’s financial performance as the sale will bring in more revenue and reduce costs.
Investors should consider that the sale of the attachment tools unit will help strengthen Stanley Black & Decker’s balance sheet, while also increasing earnings per share. Overall, investors should expect a solid return on their investment when they invest in Stanley Black & Decker.
