5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Stanley Black & Decker's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 36.70%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Stanley Black & Decker's 5-Year ROIIC % or its related term are showing as below:
SWK's 5-Year ROIIC % is ranked better than 87.66% of 2787
companies
in the Industrial Products industry
Industry Median: 4.59
vs SWK: 36.70
Stanley Black & Decker (NYSE:SWK) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Stanley Black & Decker 5-Year ROIIC % Related Terms
Stanley Black & Decker 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Stanley Black & Decker's 5-Year ROIIC % 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.
For the Tools & Accessories subindustry, Stanley Black & Decker's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Stanley Black & Decker's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Stanley Black & Decker's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) 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.
Stanley Black & Decker (SWK) has a 5-Year ROIIC % of 36.70 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Stanley Black & Decker and its competitors. According to the industry distribution chart, Stanley Black & Decker ranks #344 out of 2787 companies in the Industrial Products industry, placing it in the top 12.3%.
Is Stanley Black & Decker's 5-Year ROIIC % too high?
Stanley Black & Decker's current 5-Year ROIIC % is 36.70. The Industrial Products industry median 5-Year ROIIC % is 4.59. Stanley Black & Decker's value of 36.70 is 699.6% above this industry median. Based on the distribution chart, Stanley Black & Decker ranks #344 out of 2787 companies in the Industrial Products industry, which is in the top quartile — a strong position 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 5-Year ROIIC % compare to LECO and TKR?
According to the Industrial Products industry distribution chart, Stanley Black & Decker ranks #344 out of 2787 companies for 5-Year ROIIC %. This places Stanley Black & Decker in the top 12% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 4.59. Stanley Black & Decker's value of 36.70 is 699.6% 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 5-Year ROIIC % for an Industrial Products company?
The median 5-Year ROIIC % among Industrial Products companies is 4.59, based on 2,787 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Stanley Black & Decker's current 5-Year ROIIC % of 36.70 is 699.6% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Stanley Black & Decker and its competitors. For the Industrial Products industry, the median 5-Year ROIIC % is 4.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stanley Black & Decker's current 5-Year ROIIC % is 36.70. 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 $82.16, compared to a current price of $91.98 — trading 12% above its estimated fair value. The current 5-Year ROIIC % is 36.70 and 699.6% above the Industrial Products industry median of 4.59. Stanley Black & Decker's overall GF Score™ is 73/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Stanley Black & Decker (SWK), the current 5-Year ROIIC % is 36.70 as of Dec. 2025. 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 $91.98 is trading 12% above its estimated GF Value™ of $82.16.
GuruFocus considers Stanley Black & Decker to be Modestly Overvalued.
Key valuation signals for SWK:
5-Year ROIIC %: 36.70
GF Value™: $82.16 vs. price of $91.98 (12% above fair value)
Industry Position: 699.6% above the Industrial Products median (#344 of 2787)
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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