Stanley Black & Decker SWK
Stanley Black & Decker scores weak on business quality (2.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Stanley Black & Decker does
Stanley Black & Decker makes tools and outdoor equipment, selling Craftsman, DEWALT, and Black+Decker products to contractors and homeowners through retail channels. The company is leaning into compact cordless product rollouts like the dustbuster mini to defend market share as overall sales volume contracts.
- What it does best
DEWALT tools dominate job sites through unmatched professional brand loyalty, delivering a gross margin of 31.4% that outpaces peer LECO at 36.0% on a much larger scale. Contractors rarely switch brands because batteries and accessories lock them into the ecosystem.
- The main risk
Interest coverage at 2.5x leaves the heavy net debt load of $5.6B vulnerable if tool demand softens further and cash generation stalls.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin sits at 7.6% and return on equity is 6.9%, reflecting weak efficiency as the business struggles to scale earnings.
Brand power locks in retail consumers and professional contractors, but a gross margin sector percentile of 33 shows limited pricing advantage.
Revenue growth sits in the bottom quartile at -1.5%, shrinking from $16.9B in 2022 as demand fades across primary segments.
Total debt sits at $5.9B against $280M in cash, leaving interest coverage at 2.5x: debt servicing consumes a sizeable chunk of earnings.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $105K outside pre-planned sales.
Our sealed record on SWK
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Stanley Black & Decker scores weak on the Cluenex quality check (2.8 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 1 sold $105K outside pre-planned sales.
Nov 4, 2026, before the open.
See SWK today
- Today's verdict on SWK, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Stanley Black & Decker (SWK)”, https://cluenex.com/stocks/swk/, data as of Oct 10, 2026.