Stanley Black & Decker, Inc. provides tools and storage, commercial electronic security, and engineered fastening systems worldwide. Its Tools & Storage segment provides corded and cordless electric power tools and equipment, including drills, wrenches and drivers, grinders, saws, routers, and sanders; pneumatic tools and fasteners, such as nail guns, nails, staples, and anchors; lawn and garden products comprising trimmers, mowers, edgers, and related accessories; home products, such as vacuums, paint tools, and cleaning appliances; power tool accessories that include drill and router bits, abrasives, and saw blades; measuring, leveling, and layout tools; planes, hammers, demolition tools, knives, saws, chisels, and industrial and automotive tools; and storage products, such as tool boxes, sawhorses, medical cabinets, and engineered storage products. The company's Security segment offers alarm monitoring, video surveillance, fire alarm monitoring, systems integration, and system maintenance services; markets asset tracking, infant protection, pediatric protection, patient protection, wander management, fall management, and emergency call products; sells automatic doors, commercial hardware, locking mechanisms, electronic keyless entry systems, keying systems, and tubular and mortise door locksets. Its Industrial segment sells fastening products and systems comprising stud welding systems, blind rivets and tools, blind inserts and tools, drawn arc weld studs, plastic and mechanical fasteners, self-piercing riveting systems, nut running systems, micro fasteners, high-strength structural fasteners, and hydraulic tools and accessories; sells and rents custom pipe handling, joint welding, and coating equipment; and provides pipeline inspection services. The company was formerly known as The Stanley Works and changed its name to Stanley Black & Decker, Inc. in March 2010. The company was founded in 1843 and is headquartered in New Britain, Connecticut.
Business Analysis of Stanley Black & Decker
The Industrial Goods & Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Stanley Black & Decker compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Stanley Black & Decker to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Stanley Black & Decker with an interactive chart.
- Revenue Growth: Stanley Black & Decker reported a revenue growth of 2.1% year-on-year during 2016. Industrial Machinery Industry grew at -3.7% in the same period
- COGS share of Revenues: As a percentage of revenue, Stanley Black & Decker spent 62.6% of its total revenues on COGS. Industrial Machinery industry average (COGS share of revenue) in the same period was 67.3%
- R&D share of Revenues: Stanley Black & Decker R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Stanley Black & Decker spent 22.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Industrial Machinery industry average SG&A spending in the same period was 20.4%
- Inventory share of Revenues: As a percentage of revenue, Stanley Black & Decker spent 13.0% of its total revenues on Inventories. Industrial Machinery industry average Inventory spending in the same period was 14.0%
- Accounts Payable share of Revenues: As a percentage of revenue, Stanley Black & Decker invested 14.4% of its total revenues on Accounts Payable (A/P) Industrial Machinery industry average Accounts Payable investment in the same period was 9.4%
- Accounts Receivable share of Revenues: As a percentage of revenue, Stanley Black & Decker invested 11.4% of its total revenues on Accounts Receivable (A/R). Industrial Machinery industry average Accounts Receivable investment in the same period was 16.2%
- PP&E share of Revenues: As a percentage of revenue, Stanley Black & Decker invested 12.7% of its total revenues on Property, Plants, and Equipments (PP&E). Industrial Machinery industry average PPE investment in the same period was 15.0%
- Intangibles share of Revenues: As a percentage of revenue, Stanley Black & Decker invested 78.8% of its total revenues on Intangibles. Industrial Machinery industry average Intangibles investment in the same period was 46.7%
- Net Margins: Stanley Black & Decker Net Margins in the year 2016 were 8.5%. Industrial Machinery industry average Net Margins in the same period were 4.7%
Sector and Industry Association of Stanley Black & Decker
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Stanley Black & Decker is associated with Industrials Sector Group, Industrial Goods & Services Sector, and Industrial Machinery Industry.
Industrial Goods & Services sector is comprised of the following industries: Industrial Conglomerates; Industrial Machinery; Electrical Components & Equipment; Electronic Equipment & Parts; Containers & Packaging. The definitions for each of the industries is as follows:
- Industrial Conglomerates industry includes Industrial companies engaged in three or more classes of business within the Industrial industry that differ substantially from each other.
- Industrial Machinery industry includes designers, manufacturers, distributors and installers of industrial machinery and factory equipment, such as machine tools, lathes, presses and assembly line equipment. It also includes makers of pollution control equipment, castings, pressings, welded shapes, structural steelwork, compressors, pumps, bearings, elevators and escalators.
- Electrical Components & Equipment industry consists of manufacturers and distributors of electrical parts for finished products, such as printed circuit boards for radios, televisions and other consumer electronics. It also includes makers of cables, wires, ceramics, transistors, electric adapters, fuel cells and security cameras. Manufacturers of Electric motors and generators and mechanical motion control products are also part of this industry.
- Electronic Equipment & Parts industry includes companies offering Manufacturing and Design services for Engineered Components and Products used in different industries. Companies providing Laser-based manufacturing products are part of this industry.
- Containers & Packaging industry includes producers and distributors of cardboard, bags, boxes, cans, drums, bottles, jars and glass used for packaging. Specialty Packaging Products and Pressure-Sensitive Materials producers are also part of this industry.
Industry Ranking of Stanley Black & Decker
With $11.4 billion revenues, Stanley Black & Decker ranked number 1 of all the companies in the US Industrial Machinery industry. There were a total of 92 public companies in the US Industrial Machinery industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Industrial Machinery industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
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