📊 SWK Key Takeaways
Is Stanley Black & Decker, Inc.. (SWK) a Good Investment?
Stanley Black & Decker demonstrates improving profitability with net income up 36.6% YoY despite flat revenue, driven by operational efficiency gains. However, weak interest coverage (0.8x), high leverage relative to equity (0.58x), and concerning liquidity metrics (0.35x quick ratio) indicate financial stress that limits upside potential. The company's solid free cash flow generation (4.5% FCF margin) provides some cushion, but structural profitability challenges persist with only 2.8% operating margins.
Stanley Black & Decker shows improving earnings and solid free cash flow generation, but the quality of that improvement is constrained by declining revenue and very weak operating profitability. Financial health is pressured by thin liquidity and sub-1x interest coverage, which leaves limited margin for error if operating conditions weaken again.
Why Buy Stanley Black & Decker, Inc.. Stock? SWK Key Strengths
- Net income growth of 36.6% YoY demonstrates significant operational leverage and cost discipline
- Healthy free cash flow of $687.9M (4.5% margin) supports dividend and debt obligations
- Gross margin of 28.3% provides pricing power and product quality positioning
- Reasonable debt-to-equity ratio of 0.58x shows leverage not yet extreme
- Positive free cash flow of $687.9M supports balance sheet flexibility and internal funding capacity
- Net income and diluted EPS grew more than 35% year over year, indicating recovery progress
- Debt-to-equity of 0.58x is manageable on its own and equity of $9.05B provides some balance sheet support
SWK Stock Risks: Stanley Black & Decker, Inc.. Investment Risks
- Critical interest coverage of only 0.8x indicates potential difficulty servicing $5.3B long-term debt, especially in rising rate environment
- Quick ratio of 0.35x signals severe liquidity constraints; company heavily dependent on inventory conversion
- Revenue decline of 1.5% YoY combined with razor-thin 2.8% operating margin leaves minimal margin for error
- Weak ROE (4.4%) and ROA (1.9%) suggest capital is not being deployed efficiently relative to asset base
- Current ratio of 1.14x is bare minimum adequacy, limiting financial flexibility for acquisitions or downturns
- Operating margin of 2.8% and net margin of 2.7% are too thin for a cyclical industrial business
- Interest coverage of 0.8x suggests current operating earnings do not comfortably cover interest expense
- Current ratio of 1.14x and quick ratio of 0.35x indicate tight near-term liquidity and reliance on inventory conversion
Key Metrics to Watch
- Interest coverage ratio - must improve above 1.5x to reduce default risk
- Operating cash flow sustainability - critical given weak operating margins
- Revenue trend reversal - current 1.5% decline needs stabilization
- Quick ratio improvement - target 0.50x or higher for adequate short-term liquidity
- Operating margin expansion - must exceed 3.5% to justify leverage levels
- Operating margin and interest coverage
- Revenue growth and free cash flow consistency
Stanley Black & Decker, Inc.. (SWK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.5% FCF margin may limit capital allocation flexibility.
SWK Profit Margin, ROE & Profitability Analysis
SWK vs Market Sector: How Stanley Black & Decker, Inc.. Compares
How Stanley Black & Decker, Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Stanley Black & Decker, Inc.. Stock Overvalued? SWK Valuation Analysis 2026
Based on fundamental analysis, Stanley Black & Decker, Inc.. shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Stanley Black & Decker, Inc.. Balance Sheet: SWK Debt, Cash & Liquidity
SWK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Stanley Black & Decker, Inc..'s revenue has shown modest growth of 1% over the 5-year period. The most recent EPS of $-2.07 indicates the company is currently unprofitable.
SWK Revenue Growth, EPS Growth & YoY Performance
SWK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $3.8B | -$11.2M | $0.34 |
| Q2 2025 | $3.9B | $8.3M | $0.05 |
| Q1 2025 | $3.7B | $19.5M | $0.13 |
| Q3 2024 | $3.8B | $4.7M | $0.03 |
| Q2 2024 | $4.0B | $8.3M | $0.05 |
| Q1 2024 | $3.9B | $19.5M | $0.13 |
| Q3 2023 | $4.0B | $4.7M | $0.03 |
| Q2 2023 | $4.2B | -$10.8M | $-0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Stanley Black & Decker, Inc.. Dividends, Buybacks & Capital Allocation
SWK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Stanley Black & Decker, Inc.. (CIK: 0000093556)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SWK
What is the AI rating for SWK?
Stanley Black & Decker, Inc.. (SWK) has a Combined AI Rating of SELL from Claude (HOLD) and ChatGPT (SELL) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are SWK's key strengths?
Claude: Net income growth of 36.6% YoY demonstrates significant operational leverage and cost discipline. Healthy free cash flow of $687.9M (4.5% margin) supports dividend and debt obligations. ChatGPT: Positive free cash flow of $687.9M supports balance sheet flexibility and internal funding capacity. Net income and diluted EPS grew more than 35% year over year, indicating recovery progress.
What are the risks of investing in SWK?
Claude: Critical interest coverage of only 0.8x indicates potential difficulty servicing $5.3B long-term debt, especially in rising rate environment. Quick ratio of 0.35x signals severe liquidity constraints; company heavily dependent on inventory conversion. ChatGPT: Operating margin of 2.8% and net margin of 2.7% are too thin for a cyclical industrial business. Interest coverage of 0.8x suggests current operating earnings do not comfortably cover interest expense.
What is SWK's revenue and growth?
Stanley Black & Decker, Inc.. reported revenue of $15.1B.
Does SWK pay dividends?
Stanley Black & Decker, Inc.. pays dividends, with $500.6M distributed to shareholders in the trailing twelve months.
Where can I find SWK SEC filings?
Official SEC filings for Stanley Black & Decker, Inc.. (CIK: 0000093556) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SWK's EPS?
Stanley Black & Decker, Inc.. has a diluted EPS of $2.65.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SWK a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Stanley Black & Decker, Inc.. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SWK stock overvalued or undervalued?
Valuation metrics for SWK: ROE of 4.4% (sector avg: 15%), net margin of 2.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy SWK stock in 2026?
Our dual AI analysis gives Stanley Black & Decker, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SWK's free cash flow?
Stanley Black & Decker, Inc..'s operating cash flow is $971.2M, with capital expenditures of $283.3M. FCF margin is 4.5%.
How does SWK compare to other Market stocks?
Vs Default sector averages: Net margin 2.7% (avg: 12%), ROE 4.4% (avg: 15%), current ratio 1.14 (avg: 1.8).