Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Stanley Black & Decker's Sloan Ratio for the quarter that ended in Mar. 2026 was -1.72%.
As of Mar. 2026, Stanley Black & Decker has a Sloan Ratio of -1.72%, indicating the company is in the safe zone and there is no funny business with accruals.
Stanley Black & Decker (NYSE:SWK) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, Stanley Black & Decker has a Sloan Ratio of -1.72%, indicating the company is in the safe zone and there is no funny business with accruals.
Stanley Black & Decker Sloan Ratio % Related Terms
Stanley Black & Decker Sloan Ratio % Historical Data
* 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 Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Stanley Black & Decker's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Stanley Black & Decker's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Stanley Black & Decker's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Stanley Black & Decker's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 101.9 (Jun. 2025 ) + 51.4 (Sep. 2025 ) + 158.2 (Dec. 2025 ) + 59.6 (Mar. 2026 ) = $371 Mil.
Stanley Black & Decker's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 214.3 (Jun. 2025 ) + 221.2 (Sep. 2025 ) + 955.7 (Dec. 2025 ) + -388.8 (Mar. 2026 ) = $1,002 Mil.
Stanley Black & Decker's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -67.2 (Jun. 2025 ) + -65.1 (Sep. 2025 ) + -71.5 (Dec. 2025 ) + -55.5 (Mar. 2026 ) = $-259 Mil.
* 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 (SWK) has a Sloan Ratio % of -1.72% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Stanley Black & Decker and its competitors.
Is Stanley Black & Decker's Sloan Ratio % too high?
Stanley Black & Decker's current Sloan Ratio % is -1.72%. 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 Sloan Ratio % compare to LECO and TKR?
Stanley Black & Decker's Sloan Ratio % of -1.72% can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Industrial Products company?
A good Sloan Ratio % depends on the Industrial Products industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Stanley Black & Decker and its competitors. Stanley Black & Decker's current Sloan Ratio % is -1.72%. 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 $82.17, compared to a current price of $91.90 — trading 11.8% above its estimated fair value. The current Sloan Ratio % is -1.72%. 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 Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Stanley Black & Decker (SWK), the current Sloan Ratio % is -1.72% 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 (SWK) Overvalued in 2026?
Based on GuruFocus' analysis, Stanley Black & Decker stock appears to be overvalued.
The current stock price of $91.90 is trading 11.8% above its estimated GF Value™ of $82.17.
GuruFocus considers Stanley Black & Decker to be Modestly Overvalued.
Key valuation signals for SWK:
Sloan Ratio %: -1.72%
GF Value™: $82.17 vs. price of $91.90 (11.8% above fair value)
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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