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1. Company Snapshot

1.a. Company Description

Stanley Black & Decker, Inc.engages in the tools and storage and industrial businesses in the United States, Canada, rest of Americas, France, rest of Europe, and Asia.Its Tools & Storage segment offers professional products, including professional grade corded and cordless electric power tools and equipment, and pneumatic tools and fasteners; and consumer products, such as corded and cordless electric power tools primarily under the BLACK+DECKER brand, as well as corded and cordless lawn and garden products and related accessories; home products; and hand tools, power tool accessories, and storage products.


This segment sells its products through retailers, distributors, dealers, and a direct sales force to professional end users, distributors, dealers, retail consumers, and industrial customers in various industries.The company's Industrial segment provides engineered fastening systems and products to customers in the automotive, manufacturing, electronics, construction, aerospace, and other industries; sells and rents custom pipe handling, joint welding, and coating equipment for use in the construction of large and small diameter pipelines, as well as provides pipeline inspection services; and sells hydraulic tools and performance-driven heavy equipment attachment tools.This segment serves oil and natural gas pipeline industry and other industrial customers.


It also sells automatic doors to commercial customers.The company was formerly known as The Stanley Works and changed its name to Stanley Black & Decker, Inc.in March 2010.


Stanley Black & Decker, Inc.was founded in 1843 and is headquartered in New Britain, Connecticut.

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1.b. Last Insights on SWK

Stanley Black & Decker faces challenges, including declining sales, margin pressure, and a heavily leveraged balance sheet, raising concerns about long-term stability. Despite cost-cutting efforts and acquisitions, the company's aggressive margin recovery targets appear overly optimistic amid persistent negative sales growth and tariff headwinds. The company's Q3 earnings beat estimates, but flat sales and a trimmed full-year outlook temper enthusiasm. Institutional investors, such as Sumitomo Mitsui Trust Group and Wealthfront Advisers, have reduced their positions in the company. (Source: Zacks)

1.c. Company Highlights

2. Stanley Black & Decker's Strategic Transformation Yields Positive Results

Stanley Black & Decker reported third-quarter 2025 results that were in line with expectations, with revenue coming in at $3.8 billion, flat compared to the prior year period. The company's adjusted gross margin rate was 31.6%, up 110 basis points versus last year, driven by pricing strategies and supply chain transformation efficiencies. Adjusted earnings per share (EPS) came out at $1.43, beating estimates of $1.19. The company's gross margin expansion was a notable highlight, with Chris Nelson stating that they expect to continue their trajectory of year-over-year adjusted gross margin improvement.

Publication Date: Nov -09

📋 Highlights
  • Q3 Revenue & Margin Performance:: Revenue held at $3.8 billion (flat YoY) with 5% pricing gains offsetting 6% volume decline; adjusted gross margin rose to 31.6% (+110 bps YoY).
  • Cost Savings Progress:: $120 million in incremental pretax cost savings in Q3, with $1.9 billion total achieved since 2022’s transformation program launch.
  • Gross Margin Trajectory:: Targeting 35% adjusted gross margin by Q4 2026, with 33% projected for 2025’s full year and 33% in Q4 2025 (±50 bps).
  • USMCA Compliance Shift:: Reduced U.S. imports from China to 15% in 2024, aiming for <5% by 2026, with $350–400 million 2026 gross productivity goals from supply chain reconfiguration.
  • Free Cash Flow & Leverage:: Generated $155 million FCF in Q3; 2025 FCF target of $600 million, alongside net debt/EBITDA target of ≤2.5x.

Operational Excellence and Innovation Drive Growth

The company has made significant progress in its strategic transformation, focusing on activating its brands with purpose, driving operational excellence, and accelerating innovation. The company's DEWALT brand continued to grow year-over-year, supported by relatively resilient professional demand. Stanley Black & Decker has centralized its engineering organization under one leader to unify its global strategy and invest in core capabilities, design processes, and systems.

Cost Reduction and Margin Expansion

The company has made progress on its global cost reduction transformation program, delivering approximately $120 million in incremental pretax run rate cost savings in the third quarter. These actions support the ongoing margin improvement trajectory, enabling sustained investment in growth. The company expects to achieve 35% adjusted gross margin while further strengthening its balance sheet.

Valuation and Outlook

With a P/E Ratio of 23.56 and an EV/EBITDA of 12.21, the market is pricing in a certain level of growth and profitability. Analysts estimate next year's revenue growth at 3.3%. The company's focus areas for 2026 include gross margin progression, managing SG&A, and generating growth investments. With a Net Debt / EBITDA ratio of 4.32, the company has a significant amount of debt, but is working to reduce it. The company's ROE (%) is 4.93, indicating a relatively stable return on equity.

Tariff Mitigation and Supply Chain Resiliency

The company's tariff mitigation and gross margin improvement strategy focuses on minimizing U.S. supply from China, with substantial advancements in rapidly moving cordless production from China to Mexico and increasing USMCA-compliant production in Mexico. The company plans to reduce U.S. goods from China from 15% in 2024 to less than 10% by mid-2026 and less than 5% by the end of 2026.

3. NewsRoom

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Stanley Black & Decker, Inc. (SWK) Presents at Goldman Sachs Industrials and Materials Conference 2025 Transcript

Dec -04

Source: seekingalpha.com

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Stanley Black Exhibits Strong Prospects Despite Persisting Headwinds

Dec -04

Source: zacks.com

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Stanley Black & Decker, Inc. (NYSE:SWK) Receives Consensus Recommendation of “Hold” from Brokerages

Dec -04

Source: defenseworld.net

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Stanley Black & Decker Appoints Agustin Lopez Diaz as Chief Global Supply Chain Officer

Dec -03

Source: prnewswire.com

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Stanley Black & Decker To Present At The 2025 Goldman Sachs Industrials And Materials Conference

Nov -20

Source: prnewswire.com

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Campbell & CO Investment Adviser LLC Takes $355,000 Position in Stanley Black & Decker, Inc. $SWK

Nov -17

Source: defenseworld.net

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4 Ideal November Buys In Barron's 100 Sustainable Dividend Dogs Of 47 'Safer'

Nov -13

Source: seekingalpha.com

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Stanley Black & Decker, Inc. (SWK) Presents at Baird 55th Annual Global Industrial Conference Transcript

Nov -12

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.69%)

6. Segments

Tools & Outdoor

Expected Growth: 3%

Stanley Black & Decker's Tools & Outdoor segment growth is driven by increasing demand for outdoor recreational activities, rising popularity of DIY projects, and strategic acquisitions expanding product offerings. Additionally, investments in e-commerce and digital marketing enhance customer engagement, contributing to a 3% growth rate.

Industrial

Expected Growth: 1%

Stanley Black & Decker's Industrial segment growth is driven by increasing demand for industrial tools and equipment, particularly in the automotive and aerospace industries. Additionally, the company's focus on innovation, digitalization, and strategic acquisitions has enabled it to expand its product offerings and strengthen its market position.

7. Detailed Products

Power Tools

A wide range of power tools including drills, saws, sanders, and more

Hand Tools

A variety of hand tools including wrenches, pliers, screwdrivers, and more

Storage Solutions

A range of storage solutions including tool chests, cabinets, and accessories

Engineered Fastening

A range of engineered fastening solutions including rivets, inserts, and more

Infrastructure

A range of infrastructure solutions including security systems, access control, and more

Oil and Gas

A range of solutions for the oil and gas industry including drilling, extraction, and more

8. Stanley Black & Decker, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Stanley Black & Decker, Inc. faces moderate threat from substitutes due to the availability of alternative products from competitors.

Bargaining Power Of Customers

Stanley Black & Decker, Inc. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Stanley Black & Decker, Inc. has a moderate dependence on suppliers, which can impact its production and pricing.

Threat Of New Entrants

Stanley Black & Decker, Inc. operates in a capital-intensive industry, which creates a barrier to entry for new entrants.

Intensity Of Rivalry

Stanley Black & Decker, Inc. operates in a highly competitive industry, which leads to intense rivalry among existing players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.65%
Debt Cost 9.60%
Equity Weight 55.35%
Equity Cost 10.54%
WACC 10.12%
Leverage 80.66%

11. Quality Control: Stanley Black & Decker, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Snap-on

A-Score: 6.8/10

Value: 3.9

Growth: 6.0

Quality: 8.1

Yield: 6.0

Momentum: 7.5

Volatility: 9.0

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Lincoln Electric

A-Score: 5.4/10

Value: 2.4

Growth: 6.4

Quality: 6.3

Yield: 2.0

Momentum: 7.5

Volatility: 7.7

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RBC Bearings

A-Score: 5.3/10

Value: 0.8

Growth: 7.4

Quality: 6.8

Yield: 0.0

Momentum: 8.5

Volatility: 8.3

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Toro

A-Score: 5.1/10

Value: 4.1

Growth: 6.1

Quality: 5.8

Yield: 3.0

Momentum: 3.5

Volatility: 8.0

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Timken

A-Score: 4.9/10

Value: 5.4

Growth: 5.1

Quality: 4.6

Yield: 4.0

Momentum: 3.5

Volatility: 7.0

1-Year Total Return ->

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Stanley Black & Decker

A-Score: 4.2/10

Value: 4.9

Growth: 3.1

Quality: 3.9

Yield: 7.0

Momentum: 1.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

72.47$

Current Price

72.47$

Potential

-0.00%

Expected Cash-Flows