Stanley Black & Decker Inc. (SWK) Stock

Stanley Black & Decker Inc. trades at a P/E ratio of 23.39, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 11.72 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.37 indicates reasonable value when growth is considered.

With a beta of 1.16, Stanley Black & Decker Inc. is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 1.26 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Stanley Black & Decker Inc. achieves a profit margin of 3.16%, meaning it retains $3.16 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 5.16% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 5.38% and ROA at 2.64%, the company achieves moderate returns on invested capital.

Stanley Black & Decker Inc.'s revenue declined by 2.00% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings increased by 361.20% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against TOOLS & ACCESSORIES industry averages for proper context.

Stanley Black & Decker Inc. offers a dividend yield of 4.44%, paying $3.28 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 2, 2025.

The dividend sustainability can be assessed through the payout ratio - Stanley Black & Decker Inc. pays $3.28 per share in dividends against earnings of $3.16 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Sep 16, 2025.

Stanley Black & Decker Inc. has a market capitalization of $11.4B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 154.79M shares outstanding, the company's ownership is relatively concentrated. As a participant in the TOOLS & ACCESSORIES industry, it competes with other firms in this sector.

Stanley Black & Decker Inc.'s book value per share is $58.56, while the current stock price is $68.84, resulting in a price-to-book (P/B) ratio of 1.18. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

19 analysts cover SWK with 32% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $87.03 implies 26.4% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 5 Buy, 12 Hold, 01 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.