This is an introduction to my Stanley Black & Decker stock analysis. It is a follow up to my January 31, 2018 article at which time I viewed SWK as being overvalued. I now view SWK as an attractive long-term investment following the recent pullback in SWK's stock price.


  • In my January 31, 2018 article I stated that I perceived Stanley Black & Decker to be overvalued despite the pullback from its early January highs. Subsequent to my previous article, SWK has retraced further.
  • SWK released its Q1 2018 results on April 20, 2018 and has revised its GAAP EPS range to $7.40 - $7.60 from $7.80 - $8.00. Adjusted EPS guidance of $8.30 - $8.50 and a Free Cash Flow (FCF) conversion of ~100% were reiterated.
  • SWK offers long-term growth potential and a lengthy record of annual dividend increases but yield hungry investors will likely overlook SWK because of its unattractive dividend yield.


This Stanley Black & Decker (NYSE: SWK) article is a follow up to my January 31, 2018 article in which I indicated I was of the opinion that SWK was overvalued. I, therefore, indicated I would bide my time before initiating a position.

SWK is certainly an investor friendly company. It provides considerable investor information which can be viewed here.

Be aware that as I compose this article, the ‘Download Investor Presentation’ link takes you to a January 2018 presentation. This presentation does not reflect the very recent downward revised FY2018 Diluted GAAP EPS guidance. This article, however, provides my opinion on SWK as a potential investment taking into consideration the reduced GAAP guidance.

Vision and Strategic Imperatives

Many investors make investment decisions on the basis of short-term results. In my opinion, this is short-sighted. I, therefore, think it is important to ‘tune out the noise’ and to focus on management’s strategic vision and goals and objectives which it has communicated to its shareholders. In this regard, I strongly encourage you to review SWK’s Investor Day Presentation of May 16 2017.

Please click here to read my Stanley Black & Decker stock analysis.

Members of the FFJ community can access reports I generate on high quality companies which add long-term shareholder value. In an effort to help you determine whether my offering is of any value to you I am pleased to offer 30 days' free access to all sections of my site. No commitments. No obligations. That's 30 days from the time you register at absolutely no cost to you!