Up 147% Since March, Is Stanley Black & Decker Stock Still a Good Value?

Having doubled in price since the trough in early March Stanley Black & Decker (NYSE: SWK) stock has had a great run in the last several months. Moreover, it now trades on at more than 32 times current earnings so it's not a superficially cheap stock. As such, investors now have reason to ask whether it's still a good value. I happen to think the answer to that question is yes. Here's why.

Image source: Getty Images.

Probably the best way to understand the investment case behind the stock is to look at the following chart. As you can see below, the company's gross profit margin (the profit margin after cost of sales is taken out) and operating margin (profit margin after cost of sales, operating expenses, and depreciation and amortization are taken out) have both fallen significantly in recent years.

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Source Fool.com