Stanley Black & Decker

Methodology

Stanley Black & Decker's tool business faces earnings pressure from inventory destocking, inflation impacts, and integration challenges. Normalize for temporary headwinds and focus on mid-cycle profitability from professional tool demand and consumer DIY activity. The calculation requires adjusting for restructuring and one-time costs to assess sustainable earnings power.

Methodology

Stanley's PEG ratio reflects challenged near-term conditions with depressed growth creating seemingly expensive valuations. The metric should normalize for cyclical pressures and focus on recovery potential to historical margins. Compare to other tool companies and Stanley's historical range while considering turnaround execution and market share dynamics.

Methodology

Stanley offers a meaningful dividend with a long history of increases, though recent pressures have raised sustainability questions. The dividend provides value but faces scrutiny until operational improvements materialize. For this tool company, return to normalized profitability matters more than maintaining dividend growth in the near term.