Stanley’s top brands offset its acquisition risk

Article Excerpt

STANLEY BLACK & DECKER INC. $140 (New York symbol SWK; Income Portfolio, Manufacturing & Industry sector; Shares o/s: 153.0 million; Market cap: $21.4 billion; Price-to-sales ratio: 1.6; Divd. yield: 1.9%; TSINetwork Rating: Average; www.stanleyblackanddecker.com) is one of the world’s largest makers of hand and power tools for consumers. In addition to Stanley and Black & Decker, its top-selling brands include DeWalt, Craftsman and Irwin. Tools and storage products accounted for 70% of Stanley’s 2017 sales and 72% of its profits. That’s followed by Industrial products (15% of sales, 17% of profit) and building security systems (15%, 11%). The company’s overall sales rose 4.1%, from $10.9 billion in 2013 to $11.3 billion in 2014. Overseas markets account for about half of Stanley’s sales, and due to the negative impact of currency rates, its total revenue slipped to $11.2 billion in 2015. However, sales rebounded to $11.4 billion in 2016, and rose again to $12.7 billion in 2017. New businesses spurred earnings Total earnings surged 135.8%, from $520…

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