Arguably still best known as a power tools and hand tools company, Stanley Black & Decker (NYSE:SWK) has spent considerable sums on M&A in the name of diversification. Thus far these deals haven't meaningfully helped the company's returns on capital nor its free cash flow generation, due in no small part to ongoing challenges with its Security business. Although Stanley Black & Decker doesn't look unreasonably valued relative to EBITDA and it has significant self-improvement potential, the shares already price in a lot of cash flow-based improvement.
A lot of Stanley Black & Decker's recent challenges have centered on the Security business. Sales fell 4% on an organic basis in the first quarter of this year...
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