Value Investing with Sven Carlin, Ph.D. on $SWK (Nov 10, 2026)
SWK is fairly priced but not attractive: down over five years and at a P/E of 20/high teens, with a five-to-seven-percent cash-flow yield implying only fair returns. Earnings could improve if margins normalize to historical levels, but competition is high and margins are lower; nothing bad, but it won't make you rich.
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Stanley Black & Decker has been destroyed over the last five years but now we are there P ratio of 20 I looked a little bit at the results yes If it returns to the cyclical normality but the competition is high 2022 was exuberance you have no mode things normalized maybe if margins normalize to historical levels you can see now margins are lower then it should improve earnings go up but P ratio still here high teens that's not that great for industrial like this fairly ly priced.
I'm looking at the cash flows. That's that five, six, not to say six, seven% priced already good companies priced at a fair return. That's not that attractive. Nothing bad, but not really going to make you rich.