Is Stanley Black & Decker (SWK) a Fundamentally Strong Business?

2 months ago 20

Soumya Eswaran

Tue, Apr 15, 2025, 5:57 AM 3 min read

Investment absorption company Vulcan Value Partners recently released its first-quarter 2025 capitalist letter. A transcript of the missive tin be downloaded here. The archetypal 4th experienced the instrumentality of volatility. The companies’ absorption teams expressed a much cautious presumption pursuing the caller election. Optimism has fixed mode to uncertainty astir tariffs and imaginable impacts connected earnings, inflation, and economical growth. In the quarter, the Large Cap Composite returned -2.1% nett of fees and expenses, the Small Cap Composite returned -4.5% net, the Focus Composite returned -5.8% net, the Focus Plus composite returned -6.0% and the All-Cap Composite returned -4.1% net. For much accusation connected the fund’s champion picks successful 2025, delight cheque its apical 5 holdings.

In its archetypal 4th 2025 capitalist letter, Vulcan Value Partners emphasized stocks specified arsenic Stanley Black & Decker, Inc. (NYSE:SWK). Stanley Black & Decker, Inc. (NYSE:SWK) offers manus tools, powerfulness tools, outdoor products, and related accessories. The one-month instrumentality of Stanley Black & Decker, Inc. (NYSE:SWK) was -26.09%, and its shares mislaid 33.36% of their worth implicit the past 52 weeks. On April 14, 2025, Stanley Black & Decker, Inc. (NYSE:SWK) banal closed astatine $60.10 per stock with a marketplace capitalization of $9.288 billion.

Vulcan Value Partners stated the pursuing regarding Stanley Black & Decker, Inc. (NYSE:SWK) successful its Q1 2025 capitalist letter:

"We purchased 3 positions during the quarter: Medpace Holdings Inc., Stanley Black & Decker, Inc. (NYSE:SWK), and TPG Inc. Stanley Black & Decker is simply a shaper of tools and concern fastening products. Brands see DEWALT, Black & Decker, Craftsman, Stanley, Lenox, Cub Cadet, and Troy-Bilt. Its Tools and Storage conception makes up 90% of institution gross which includes powerfulness tools, manus tools, and outdoor equipment. The remaining 10% comes from its Engineered Fastening segment, which includes fasteners, rivets & welding instrumentality for the automotive, aerospace and concern markets. The institution has beardown brands, precocious marketplace share, and planetary scale. Stanley Black & Decker’s net person been nether unit for the past respective years owed to Covid related proviso concatenation issues and trouble integrating acquisitions. More recently, higher involvement rates person depressed lodging demand, which successful crook has reduced request for its halfway tools business. Going forward, we expect the company’s outgo restructuring program to underpin beardown net growth. In addition, the company’s renewed absorption connected investing successful integrated maturation gives america assurance that the institution has a agelong runway to present much accordant net growth. Recent announcements astir tariffs could dilatory the company’s advancement but it does not alteration our cardinal concern case."