SWK

Stanley Black & Decker Inc

Industrial/Transportation, Consumer


Presented:04/14/2021
Price:$201.43
Cap:$32.44B
Current Price:$107.07
Cap:$16.48B

Presented

Date04/14/2021
Price$201.43
Market Cap$32.44B
Ent Value$33.33B
P/E Ratio26.13x
Book Value$59.47
Div Yield1.39%
Shares O/S161.03M
Ave Daily Vol1,257,847
Short Int2.66%

Current

Price$107.07
Market Cap$16.48B
Stanley Black & Decker, Inc. engages in the provision of power and hand tools, and related accessories, products, services and equipment for oil & gas and infrastructure applications, commercial electronic security and monitoring systems, healthcare solutions, and mechanical access solutions. It operates through the following three segments: Tools and Storage, Industrial, and Security. The Tools and Storage segment comprises of the power tools and equipment, and hand tools, accessories, and storage businesses. The Industrial segment comprises of engineered fastening and infrastructure businesses. The Security segment includes the convergent security solutions and mechanical access solutions businesses. The company was founded by Frederick T. Stanley in 1843 and is headquartered in New Britain, CT.

Publicly traded companies mentioned herein: Home Depot Inc (HD), Lowe's Companies Inc (LOW), Stanley Black & Decker Inc (SWK), Techtronic Industries Co Ltd (669 HK)

Highlights

The presenter is long shares of Stanley Black & Decker Inc (SWK) and sees it as a reopening beneficiary that is disguised as a COVID-19 winner. Roughly ~⅔ of SWK’s business is tools and storage (i.e., power tools and related equipment) of which 60% is exposed to the U.S. This exposure explains why SWK is associated with being a COVID-19 beneficiary, similar to a HD or LOW. Due to this, SWK has lagged the industrial sector dramatically since reopening as investors believe that SWK will have to lap insurmountable comps due to strong DIY tool sales last year. There’s also a concern about inflation and margins. 

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Idea Discussion

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