SWKStanley Black & Decker
Is the business good?
A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (2.5×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
A balanced mix of margins, efficiency, and leverage. ROE 5% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SWK?
Stanley Black & Decker earns 5.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.9 points below what the capital costs: growth destroys value
- Operating margin
- 5.6%
Operating margin · Tools & Accessories median 14% · 12 months to Q2 2026
- Cash conversion
- 2.50×
Cash conversion · 1.42× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.71%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 17% |
| FY2021 | 10% |
| FY2022 | 0.22% |
| FY2023 | −2.4% |
| FY2024 | 1.6% |
| FY2025 | 2.8% |
Details›
- Gross margin12 months to Q2 2026
- 32%
- Operating margin12 months to Q2 2026
- 5.6%
- Net margin12 months to Q2 2026
- 4.1%
- Free cash flow margin
- 8.5%
- Revenue, trailing twelve months
- $15.2B
- Free cash flow, trailing twelve months
- $1.29B
- Net income, trailing twelve months
- $621M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Tools & Accessories
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