Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 33% and operating margin about 13% through the cycle, a spread the cycle sets more than the company does. The margin is cyclical, swinging between −2.4% and 17% over the years, so the through-cycle figure carries more than any single year — and the balance sheet at the trough more than the peak. Inventory runs near 21% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 2%, above 15% in 0 of 6 years). By owner earnings: roughly 5% of revenue reaches owners as cash, consistently. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

38% of revenue comes from outside the United States.

Revenue by geography, FY2026

United States62%$9.3B
Europe20%$3.1B
Asia8%$1.2B
Other Americas6%$840M
Canada4%$680M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2026

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2021’21	2022’22	2023’23	2024’24	2026’26	TTMTTMApr 2026
										Income statement
$11.6B	$13.0B	$14.0B	$12.9B	$12.8B	$16.9B	$15.8B	$15.4B	$15.1B	$15.2B	RevenueRevenue
37%	37%	35%	33%	34%	25%	25%	29%	30%	30%	Gross marginGross mgn
23%	23%	22%	20%	20%	20%	21%	22%	22%	22%	SG&A / revenueSG&A/rev
2%	2%	2%	2%	2%	2%	2%	2%	2%	2%	R&D / revenueR&D/rev
$1.8B	$2.0B	$1.9B	$2.0B	$2.2B	$38M	($376M)	$241M	$418M	$2.2B	Operating incomeOp. inc.
15.8%	15.4%	13.5%	15.4%	17.1%	0.2%	−2.4%	1.6%	2.8%	14.3%	Operating marginOp. mgn
$968M	$1.2B	$605M	$956M	$1.2B	$1.1B	($311M)	$294M	$402M	$371M	Net incomeNet inc.
21%	20%	41%	12%	3%	—	—	—	4%	1%	Effective tax rateTax rate
										Cash flow & returns
$1.2B	$669M	$1.3B	$1.5B	$2.0B	($1.5B)	$1.2B	$1.1B	$971M	$1.0B	Operating cash flowOp. cash
$264M	$297M	$331M	$560M	$377M	$370M	$432M	$426M	$366M	$359M	DepreciationDeprec.
($127M)	($934M)	$248M	($99M)	$303M	($3.0B)	$986M	$281M	$110M	$187M	Working capital & otherWC & other
$347M	$442M	$492M	$425M	$348M	$530M	$339M	$354M	$283M	$277M	CapexCapex
3.0%	3.4%	3.5%	3.3%	2.7%	3.1%	2.1%	2.3%	1.9%	1.8%	Capex / revenueCapex/rev
$922M	$372M	$930M	$1.1B	$1.7B	($1.8B)	$853M	$753M	$688M	$726M	Owner earningsOwner earn.
8.0%	2.9%	6.6%	8.4%	13.1%	−10.8%	5.4%	4.9%	4.5%	4.8%	Owner earnings marginOE mgn
$839M	$226M	$769M	$1.1B	$1.7B	($2.0B)	$853M	$753M	$688M	$726M	Free cash flowFCF
7.2%	1.7%	5.5%	8.4%	13.1%	−11.7%	5.4%	4.9%	4.5%	4.8%	Free cash flow marginFCF mgn
$59M	$2.6B	$525M	$685M	$1.3B	$72M	$0	$0	—	$0	AcquisitionsAcquis.
$331M	$363M	$385M	$402M	$432M	$466M	$483M	$491M	$501M	$502M	Dividends paidDiv. paid
$374M	$29M	$527M	$28M	$26M	$2.3B	$16M	$18M	$20M	—	BuybacksBuybacks
15%	14%	—	—	—	0%	-2%	2%	3%	—	ROICROIC
15%	15%	8%	10%	11%	11%	-3%	3%	4%	4%	Return on equityROE
10%	10%	3%	6%	7%	6%	−9%	−2%	−1%	−1%	Retained to equityRetained/eq
										Balance sheet
$465M	$638M	$289M	$298M	$1.2B	$396M	$449M	$291M	$280M	$334M	Cash & investmentsCash+inv
$1.5B	$2.0B	$2.4B	$2.3B	$2.6B	$5.9B	$4.7B	$4.5B	$4.2B	$4.1B	InventoryInvent.
$1.6B	$2.0B	$2.2B	$2.1B	$2.3B	$2.3B	$2.3B	$2.4B	$2.2B	$2.2B	Accounts payablePayables
($162M)	($3M)	$140M	$167M	$319M	$3.5B	$2.4B	$2.1B	$2.0B	$1.8B	Operating working capitalOper. WC
$4.8B	$4.6B	$4.6B	$4.5B	$6.0B	$8.0B	$7.0B	$6.4B	$6.0B	$6.5B	Current assetsCur. assets
$2.8B	$4.4B	$4.0B	$4.4B	$4.6B	$6.6B	$5.9B	$4.9B	$5.2B	$5.7B	Current liabilitiesCur. liab.
1.7×	1.0×	1.1×	1.0×	1.3×	1.2×	1.2×	1.3×	1.1×	1.1×	Current ratioCurr. ratio
$6.7B	$8.8B	$9.0B	$7.4B	$7.9B	$8.5B	$8.0B	$7.9B	$7.3B	$7.3B	GoodwillGoodwill
$15.7B	$19.1B	$19.4B	$20.6B	$23.6B	$25.0B	$23.7B	$21.8B	$21.2B	$21.6B	Total assetsAssets
$3.8B	$3.8B	$4.8B	$3.2B	$4.2B	$5.4B	$6.1B	$6.1B	$5.3B	$4.8B	Total debtDebt
$3.4B	$3.2B	$4.5B	$2.9B	$3.0B	$5.0B	$5.7B	$5.8B	$5.0B	$4.4B	Net debt / (cash)Net debt
9.4×	9.0×	6.8×	7.1×	9.8×	0.1×	-0.7×	0.5×	0.8×	4.3×	Interest coverageInt. cov.
$6.4B	$8.3B	$7.8B	$9.1B	$11.1B	$9.7B	$9.1B	$8.7B	$9.1B	$9.0B	Shareholders’ equityEquity
0.7%	0.6%	0.5%	0.7%	0.9%	0.5%	0.5%	0.7%	0.6%	0.6%	Stock comp / revenueSBC/rev
										Per share
148M	152M	157M	156M	162M	157M	150M	151M	152M	152M	Shares out (diluted)Shares
$78.23	$85.06	$89.18	$82.57	$78.50	$108.25	$105.38	$101.56	$99.62	$99.96	Revenue / shareRev/sh
$6.53	$8.05	$3.86	$6.11	$7.60	$6.79	$-2.07	$1.95	$2.65	$2.44	EPS (diluted)EPS
$6.22	$2.44	$5.93	$6.91	$10.31	$-11.68	$5.69	$4.98	$4.53	$4.76	Owner earnings / shareOE/sh
$5.66	$1.48	$4.90	$6.91	$10.31	$-12.71	$5.69	$4.98	$4.53	$4.76	Free cash flow / shareFCF/sh
$2.23	$2.38	$2.46	$2.57	$2.66	$2.98	$3.22	$3.25	$3.30	$3.29	Dividends / shareDiv/sh
$2.34	$2.90	$3.14	$2.72	$2.14	$3.39	$2.26	$2.34	$1.87	$1.82	Cap. spending / shareCapex/sh
$42.96	$54.46	$49.98	$58.42	$68.09	$62.04	$60.47	$57.63	$59.62	$58.91	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	10-yr	5-yr
Revenue / share	+2.4%/yr	+4.9%/yr
Owner earnings / share	−3.1%/yr	−15.2%/yr
EPS	−8.6%/yr	−19.0%/yr
Dividends / share	+4.0%/yr	+4.4%/yr
Capital spending / share	−2.2%/yr	−2.7%/yr
Book value / share	+3.3%/yr	−2.6%/yr

The record, charted

FY2016–2026

Each measure over its full record; the current point and the worst year marked.

Share count

152Mpeak FY2021

ROIC

3%low FY2023

Gross margin

30%low FY2023

Net debt ÷ owner earnings

7.2×peak FY2017

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$688Mowner earningsvs.$402Mnet incomelow FY2022

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2026

Owner-earnings bridge

FY2021–FY2026cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2026 the business turned $402M of profit into $688M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$402M

Owner earnings$688M · 5% of revenue

	FY2026	FY2024	FY2023	FY2022	FY2021
Reported net income	$402M	$294M	($311M)	$1.1B	$1.2B
Depreciation & amortizationnon-cash charge added back	+$366M	+$426M	+$432M	+$370M	+$377M
Stock-based compensationreal costnon-cash, but a real cost	+$94M	+$105M	+$84M	+$91M	+$109M
Working capital & othertiming of cash in and out, other non-cash items	+$110M	+$281M	+$986M	−$3.0B	+$303M
Cash from operations	$971M	$1.1B	$1.2B	($1.5B)	$2.0B
Maintenance capital expenditurethe spending needed just to hold position and volume	−$283M	−$354M	−$339M	−$370M	−$348M
Owner earnings	$688M	$753M	$853M	($1.8B)	$1.7B
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	−$161M	—
Free cash flow	$688M	$753M	$853M	($2.0B)	$1.7B
Owner-earnings marginowner earnings ÷ revenue	5%	5%	5%	-11%	13%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $94M), owner earnings is nearer $594M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2026 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 4.2×

Adequate

Operating income $2.2B ÷ interest expense $516M

What this means
Comfortable in a normal year, but below the margin of safety Graham looked for. Worth checking how stable the coverage has been across a full cycle.
How heavy is the debt, net of cash? $5.0B · 2.3× operating profit

Meaningful net debt

Cash $280M − debt $5.3B

What this means
Netting $280M of cash and short-term investments against $5.3B of debt leaves $5.0B owed, about 2.3× a year's operating profit (2.4× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 2%

Below average through the cycle

6-yr median, range -2%–15%; the latest year is left out — large non-operating charges put its operating line well above pretax profit

Industry peers: median 13%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 6 years, so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 5%

Solid through the cycle

9-yr median margin, range -11%–13%; latest $688M = operating cash $971M − maintenance capex $283M

Industry peers: median 11%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 5% of revenue this year, a 5% median across 9 years. Treating stock comp as the real expense it is (less $94M of SBC) leaves $594M.
Are earnings backed by cash? 2.42×

Cash-backed

Cash from ops $971M ÷ net income $402M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 76%

Returns about half

Dividends + buybacks $521M ÷ Owner Earnings $688M

What this means
Of $688M Owner Earnings, $521M (76%) went back to shareholders, $501M dividends, $20M buybacks. But the buybacks barely exceed stock issued to employees ($94M SBC), net of dilution, little was truly returned. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.77×

Harvesting

Capex $283M ÷ depreciation $366M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $15.1B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 1.14×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $5.3B vs $733M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Near

A profit every year (9-yr record) · 1 loss year

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Pass

Uninterrupted dividends · paid every year (9)

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Miss

Earnings +33% over the record · −86%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.83/share (latest year $2.59), the averaged base the calculator's gate runs on, and book value is $58.25/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2026

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 8 of 9

What this means
Lost money in 1 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 1 of 9 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 15% → 1% (3-yr avg ends)

In the filing’s words The filing attributes gains to higher prices, but the margin in the record has not followed — the claim outruns the result here.

What this means
Through the cycle the operating margin slipped — about 15% early to 1% lately, median 13% — competition or costs are biting in.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +1%/yr

What this means
Owner earnings grew about 1% a year over the record.
Worst year 2023 · −2.4% op. margin

What this means
Operations went underwater in 2023, understand why before trusting the good years.
Share count +0.2%/yr

What this means
Roughly flat share count, little dilution, little buyback.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.
How management talks about it Owner’s terms

What this means
The filing reasons in an owner’s terms — per-share, return on capital, the long term — and the record has held; the words and the results are of a piece.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing A competitive risk, new this year

Its FY2026 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“The use of artificial intelligence in the Company's business operations, products and services could expose it to legal and compliance risks as well as brand or reputational harm and competitive harm, any of which may adversely affect its results of operations.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Apr 4, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$6.5B

Cash & short-term investments$334M
Inventory$4.1B
Other current assets$2.1B

Current liabilities$5.7B

Debt due within a year$54M
Accounts payable$2.2B
Other current liabilities$3.4B

Current ratio1.14×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.43×stricter: inventory excluded

Cash ratio0.06×strictest: cash alone against what's due

Working capital$790Mthe cushion left after near-term bills

Debt due this year vs. cash$54M due · $334M cash covered by cash on hand, no refinancing forced · both figures from the Apr 4, 2026 balance sheet

Revenue, latest quarter vs. a year ago+2.7%the freshest read on whether the business is still growing

Current ratio, recent quarters1.3× → 1.1×

Deeper floors

Tangible book value($2.2B)equity stripped of goodwill & intangibles

Debt incl. operating leases$4.9B$133M of it operating leases

Deferred revenue$30Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2026

Over the record, the business generated $8.5B of operating cash; how management split it reads as a cash returner, paying most of what it earns straight back to owners.

Reinvested$3.6B · 42%
Dividends$3.9B · 46%
Buybacks$3.4B · 40%

Returned to owners$7.2B
133% of the owner earnings the business produced over the span, $3.9B as dividends and $3.4B as buybacks.
Source of funding−$2.3B
Reinvestment and shareholder returns ran $2.3B beyond the operating cash the business generated, so the gap was financed off the balance sheet: debt rose from $3.8B to $4.8B.
Average price paid for buybacks$131.01
Across the years where the filing reports a share count, 26M shares were bought for $3.4B, about $131.01 each. Year to year the price paid ranged from $77.88 (2026) to $146.76 (2019); its heaviest year, 2022, paid $144.67 ($2.3B).
Net change in share count2.8%
The diluted count rose from 148M to 152M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$3.30/sh
Paid in 9 of the years on record, the per-share dividend growing about 5% a year. It was never cut over the span.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 9-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill$7.3B34% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity80%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$5.2Bover 9 years buying other businesses, against $3.6B of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 9-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Pay, as filed	“Actually paid”	Owner earnings
2021	$13.2M	$11.6M	$1.7B
2022	$13.6M	−$10.6M	($1.8B)
2022	$8.1M	−$3.2M	($1.8B)
2023	$13.9M	$14.9M	$853M
2024	$16.0M	$7.8M	$753M
2026	$14.5M	$10.3M	$688M
2026	$7.7M	$6.3M	$688M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio179:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$94M
The slice of the business handed to employees in shares this year, 1% of revenue, equal to 4% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Stanley Black & Decker Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2026.

3 of the 6 tests turned up something to look into; the other 3 came back clean.

Look hereIs it less profitable than it was?4.9% vs 5.8%
The owner-earnings margin averaged 5.8% early in the record and 4.9% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
Look hereDid receivables and inventory outpace sales?13% → 27% of sales
Receivables and inventory grew from $1.5B to $4.1B while revenue grew 31%: working capital is climbing faster than sales (13% of revenue then, 27% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.
Look hereAre "one-time" charges a yearly habit?5 of 9 years
Management took an impairment or write-down in 5 of the last 9 years, $715M in all. Taken across the majority of the record, the "one-time" label is wearing thin — ask whether these are past deals coming due rather than genuinely isolated events. Read it beside the goodwill the company still carries.

And these came back clean

Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2026

read the 10-K →

How much of the revenue rides on one buyer?
≈$6.4B · 42% of revenue on the largest customers (TTM)
“In 2025, the two largest customers comprised approximately 27% of consolidated net sales, with U.S. and international mass merchants and home centers collectively comprising approximately 42% of consolidated net sales.”verify →
Which reported numbers are a judgment call?
Management names Pension & retirement, Income taxes, Contingencies as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Building Products

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
PHParker-Hannifin Corporation	$19.9B	29%	16.4%	13%	14%
SWKStanley Black & Decker Inc.	$15.1B	33%	13.5%	2%	5%
BALLBall Corp.	$13.2B	46%	8.8%	9%	6%
CCKCrown Holdings Inc.	$12.4B	—	11.5%	10%	5%
MASMasco	$7.6B	35%	16.6%	47%	11%
SLGNSilgan Holdings	$6.5B	16%	9.3%	9%	7%
SNASnap-on	$4.7B	53%	25.8%	17%	17%
SSDSimpson Manufacturing	$2.3B	46%	19.4%	19%	13%
Group median	—	35%	14.9%	12%	9%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Stanley Black & Decker Inc. has delivered.

Today’s price $

Through the cycle, Stanley Black & Decker Inc. earns about $817M on its 5.4% median owner-earnings margin. This year’s 4.5% margin runs below that; the reported figure may understate a lean year. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($817M) Net of stock comp (−$86M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’16→’26+3%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’26)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $726M on 155M shares outstanding, per the 10-Q cover, as of 2026-04-24; net debt $4.4B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh SWK against another business →

The owners of SWK: the meeting and the votes →

Cite: Owner Scorecard, "Stanley Black & Decker Inc. (SWK), the owner's record," https://ownerscorecard.com/c/SWK, data as of 2026-07-09.

Manual order: ← SWIM its page in the Manual SWKS →

Industry order: ← SSD the Building Products chapter TGLS →