The home boom has been kind to Black & Decker (NYSE:BDK), sending the stock of this toolmaker up well more than 100% in the last two years. Whether the company owes much of its success to the boom or simply to very good management is up for debate, but there's no arguing that long-term investors are richer now no matter the ultimate source of the growth.

The second quarter would seem to be another solid performance for this company. Reported sales climbed 31% for the period, with 20% of that growth coming from the acquisition of Porter-Cable and Delta Tools and another 3% for foreign exchange. Although operating margins dropped ever so slightly, income from continuing operations still grew 26% for the quarter.

Performance was led again by the company's Power Tools and Accessories business -- a unit that accounts for nearly three-quarters of the company's total revenue and operating profits. Sales here were up 35%, with 7% of that growth coming organically from within. Although U.S. Black & Decker sales growth was characterized as a "slight increase," DeWALT grew again at a double-digit rate.

In the Hardware/Home Improvement business, sales grew 16%, while the lockset business continued to grow at a double-digit rate and the Price Pfister business grew revenue by 30%. Price Pfister sales are being helped by an increasing amount of business through Home Depot (NYSE:HD). In the Fastening/Assembly business, sales were up a modest 4%, but this business accounts for only about 10% of total sales.

Although I generally like this company, there are a couple things that give me reason to pause. First, organic growth is not exactly spectacular, and though many companies have tried, it's generally not possible to buy your growth indefinitely. Second, operating cash flow and free cash flow growth are trailing the reported profit growth. I'm not going to raise the red flag here just yet -- mid-year cash flow analysis can be misleading -- but it is something that bears continued watching.

Even though Black & Decker is getting a lot of its growth from acquisitions, its reported organic growth is still better than that posted by rivals such as Stanley Works (NYSE:SWK), Makita (NASDAQ:MKTAY), and Danaher's (NYSE:DHR) tool division. Given that the company will find it increasingly difficult to maintain its current rate of profit growth, I'd say that the shares look pretty much fairly valued today.

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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).