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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Stanley Black & Decker's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 90.46. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Stanley Black & Decker's Degree of Operating Leverage or its related term are showing as below:
SWK's Degree of Operating Leverage is ranked worse than 97.92% of 2983
companies
in the Industrial Products industry
Industry Median: 1.06
vs SWK: 90.46
Stanley Black & Decker (NYSE:SWK) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Stanley Black & Decker Degree of Operating Leverage Related Terms
Stanley Black & Decker Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Stanley Black & Decker's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Stanley Black & Decker Degree of Operating Leverage Chart
SWK vs LECO, TKR, RBC: Degree of Operating Leverage Comparison
For the Tools & Accessories subindustry, Stanley Black & Decker's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Stanley Black & Decker Degree of Operating Leverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Stanley Black & Decker's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Stanley Black & Decker's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 90.46 mean?
Stanley Black & Decker (SWK) has a Degree of Operating Leverage of 90.46 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Stanley Black & Decker and its competitors. According to the industry distribution chart, Stanley Black & Decker ranks #2921 out of 2983 companies in the Industrial Products industry, placing it in the top 97.9%.
Is Stanley Black & Decker's Degree of Operating Leverage too high?
Stanley Black & Decker's current Degree of Operating Leverage is 90.46. The Industrial Products industry median Degree of Operating Leverage is 1.06. Stanley Black & Decker's value of 90.46 is 8434% above this industry median. Based on the distribution chart, Stanley Black & Decker ranks #2921 out of 2983 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Stanley Black & Decker has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Stanley Black & Decker's Degree of Operating Leverage compare to LECO and TKR?
According to the Industrial Products industry distribution chart, Stanley Black & Decker ranks #2921 out of 2983 companies for Degree of Operating Leverage. This places Stanley Black & Decker in the lower half of its industry. The industry median Degree of Operating Leverage is 1.06. Stanley Black & Decker's value of 90.46 is 8434% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for an Industrial Products company?
The median Degree of Operating Leverage among Industrial Products companies is 1.06, based on 2,983 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stanley Black & Decker's current Degree of Operating Leverage of 90.46 is 8434% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Stanley Black & Decker and its competitors. For the Industrial Products industry, the median Degree of Operating Leverage is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stanley Black & Decker's current Degree of Operating Leverage is 90.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stanley Black & Decker stock overvalued right now?
Based on GuruFocus' analysis, Stanley Black & Decker (SWK) is currently considered Modestly Overvalued. The stock's GF Value™ is $82.86, compared to a current price of $103.89 — trading 25.4% above its estimated fair value. The current Degree of Operating Leverage is 90.46 and 8434% above the Industrial Products industry median of 1.06. Stanley Black & Decker's overall GF Score™ is 73/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Stanley Black & Decker (SWK), the current Degree of Operating Leverage is 90.46 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Stanley Black & Decker (SWK) Overvalued in 2026?
Based on GuruFocus' analysis, Stanley Black & Decker stock appears to be overvalued.
The current stock price of $103.89 is trading 25.4% above its estimated GF Value™ of $82.86.
GuruFocus considers Stanley Black & Decker to be Modestly Overvalued.
Key valuation signals for SWK:
Degree of Operating Leverage: 90.46
GF Value™: $82.86 vs. price of $103.89 (25.4% above fair value)
Industry Position: 8434% above the Industrial Products median (#2921 of 2983)
No single metric tells the full story. See the SWK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Stanley Black & Decker Inc offers hand tools, power tools, outdoor products, engineered fastening solutions, and related accessories. The company operates in two reportable business segments: Tools & Outdoor and Engineered Fastening. The majority of its revenue is generated from the Tools & Outdoor segment, which is comprised of the Power Tools Group (PTG), Hand Tools, Accessories and Storage (HTAS), and Outdoor Power Equipment (Outdoor) product lines. This segment's product offerings include drills, impact wrenches and drivers, grinders, saws, hammers, demolition tools, clamps, vises, knives, edge trimmers, lawn mowers, etc., which are offered through brands like Hustler, Dewalt, Craftsman, Stanley, and others. Geographically, the firm derives maximum revenue from the United States.
73GF Score
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