Stanley Black & Decker: Addressing Leverage Ahead Of Promised Green Shoots (NYSE:SWK)

Stanley Black & Decker: Addressing Leverage Ahead Of Promised Green Shoots Summary Stanley Black & Decker, Inc. faces persistent stagnation, high leverage, and underperformance, though recent actions hint at stabilization and modest earnings recovery. SWK's $1.8B sale of its CAM aerospace unit to Howmet Aerospace will reduce net debt to ~$4.5B, lowering leverage from ~4x to ~3x EBITDA. Dividend yield stands at 4.5% with a payout ratio near 75%, but sustainability depends on delivering further margin gains and deleveraging. While SWK's stock valuation is undemanding and investors are paid to wait, confidence in a long-term growth story requires visible margin improvement and execution. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Preview: ~259 words