Black & Decker CorporationBDK

Morningstar Rating

Stock Research and Analysis

by Anthony Dayrit

The ability to develop innovative products, pursue strategic acquisitions, and build a strong brand has helped Black & Decker become one of the sharpest names in the power tool market. However, slowdowns in construction activity and weakening demand Read more

Bulls Say

Black & Decker's ability to outspend the competition on marketing and research and development is a big advantage in a commodified power tool market.

Although big-box retailers have pricing power over the power tool industry as a whole, Black & Decker may be able to partly offset some of this control through its innovative products and brand-loyal customers.

Acquisitions have played an important role in making Black & Decker one of the biggest players in the game. Future expansion of its brand portfolio and product offerings could help the company increase its market share. Read more

Bears Say

Big-box retailers Home Depot and Lowe's account for around one third of overall sales. Declines in demand from either of these customers can significantly hurt Black & Decker's top line.

The company faces increasing competition from private-label brands such as Husky (Home Depot) and Kobalt (Lowe's), which are sold at lower prices. Black & Decker could lose out when consumers become more price-conscious in a weaker economy.

Although high demand from foreign countries previously offset declines in domestic revenue, slowing international growth means that Black & Decker isn't likely to continue enjoying this benefit. Read more

Strategy

Black & Decker aims to gain market share by expanding its brand portfolio through acquisitions and developing new products ahead of its competitors. To compete with lower-priced off-brand players Read more

Management

Nolan Archibald has served as COO since 1986 and chairman since 1987. The remaining 10 board members are independent, and all of the directors are elected annually. We like that management and directors own around 6% of shares outstanding, which we Read more

Profile

Black & Decker manufactures and markets products through three segments: power tools and accessories, hardware and home improvement, and fastening and assembly systems. Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

Why Housing Could Come Back with a Vengeance
Watch more