Stanley Black & DeckerLIM:SWK 73 Interest Coverage is 2.05 as of Mar. 2026, which is 66% below its 10-year median of 5.97. GuruFocus rates LIM:SWK with a GF Score™ of 73/100 and a GF Value™ of $85.29. The stock has 10 warning signs investors should review. Among 2,330 Industrial Products companies, Stanley Black & Decker ranks worse than 86.22% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Stanley Black & Decker's
Operating Income
for the
three
months ended in Mar. 2026 was $231 Mil. Stanley Black & Decker's Interest Expense for the
three
months ended in Mar. 2026 was $-113 Mil.
Stanley Black & Decker's interest coverage for the quarter that ended in Mar. 2026 was 2.05.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Stanley Black & Decker's Interest Coverage or its related term are showing as below:
LIM:SWK'
s Interest Coverage Range Over the Past 10 Years
Min: 1.15 Med: 5.97 Max: 10.24
Current: 2.45
LIM:SWK's Interest Coverage is ranked worse than 86.22% of 2330
companies
in the Industrial Products industry
Industry Median: 14.835
vs LIM:SWK: 2.45
Stanley Black & Decker (LIM:SWK) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Stanley Black & Decker Interest Coverage Related Terms
Stanley Black & Decker Interest Coverage Historical Data
* Premium members only.
The historical data trend for Stanley Black & Decker's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LIM:SWK vs LECO, TKR, TTC: Interest Coverage Comparison
For the Tools & Accessories subindustry, Stanley Black & Decker's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Stanley Black & Decker's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Stanley Black & Decker's Interest Coverage falls into.
Stanley Black & Decker Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (LIM:SWK) has a Interest Coverage of 2.05 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Stanley Black & Decker and its competitors. This is 66% below median its historical median of 5.97. Over the past decade, Stanley Black & Decker's Interest Coverage has ranged from 1.15 to 10.24. According to the industry distribution chart, Stanley Black & Decker ranks #2009 out of 2330 companies in the Industrial Products industry, placing it in the top 86.2%.
Is Stanley Black & Decker's Interest Coverage too high?
Stanley Black & Decker's current Interest Coverage of 2.05 is 66% below median its 10-year median of 5.97. Over the past 10 years, this metric has ranged from a low of 1.15 to a high of 10.24. The Industrial Products industry median Interest Coverage is 14.84. Stanley Black & Decker's value of 2.05 is 86.2% below this industry median. Based on the distribution chart, Stanley Black & Decker ranks #2009 out of 2330 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, reflecting its overall financial health beyond just this single metric.
How does Stanley Black & Decker's Interest Coverage compare to LECO and TKR?
According to the Industrial Products industry distribution chart, Stanley Black & Decker ranks #2009 out of 2330 companies for Interest Coverage. This places Stanley Black & Decker in the lower half of its industry. The industry median Interest Coverage is 14.84. Stanley Black & Decker's value of 2.05 is 86.2% below this benchmark. Historically, Stanley Black & Decker's own Interest Coverage has ranged from 1.15 to 10.24 over the past decade. While the company's 10-year median is 5.97 vs. the industry median of 14.84, Stanley Black & Decker has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.84, based on 2,330 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stanley Black & Decker's current Interest Coverage of 2.05 is 86.2% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Stanley Black & Decker and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stanley Black & Decker's current Interest Coverage is 2.05, which is 66% below median its own 10-year median of 5.97. 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?
Stanley Black & Decker (LIM:SWK) has a current Interest Coverage of 2.05. The stock's GF Value™ is $85.29, compared to a current price of $87.00 — trading 2% above its estimated fair value. The current Interest Coverage is 2.05, which is 66% below median its 10-year median of 5.97 and 86.2% below the Industrial Products industry median of 14.84. Stanley Black & Decker's overall GF Score™ is 73/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Stanley Black & Decker (LIM:SWK), the current Interest Coverage is 2.05 as of Mar. 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 (LIM:SWK) Overvalued in 2026?
Based on GuruFocus' analysis, Stanley Black & Decker stock appears to be overvalued.
The current stock price of $87.00 is trading 2% above its estimated GF Value™ of $85.29.
Key valuation signals for LIM:SWK:
Interest Coverage: 2.05 (66% below median its 10-year median of 5.97)
GF Value™: $85.29 vs. price of $87.00 (2% above fair value)
Industry Position: 86.2% below the Industrial Products median (#2009 of 2330)
No single metric tells the full story. See the LIM: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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