SNAP-ON INC (SNA) Stock Fundamental Analysis
NYSE:SNA - New York Stock Exchange, Inc. - US8330341012 - Common Stock - Currency: USD
Taking everything into account, SNA scores 7 out of 10 in our fundamental rating. SNA was compared to 128 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making SNA a very profitable company, without any liquidiy or solvency issues. SNA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SNA had positive earnings in the past year.
In the past year SNA had a positive cash flow from operations.
In the past 5 years SNA has always been profitable.
Each year in the past 5 years SNA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SNA (12.65%) is better than 88.28% of its industry peers.
The Return On Equity of SNA (18.49%) is better than 78.91% of its industry peers.
SNA has a better Return On Invested Capital (14.66%) than 84.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SNA is above the industry average of 10.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 18.49% | ||
| ROIC | 14.66% |
ROA(3y)13.23%
ROA(5y)12.28%
ROE(3y)19.88%
ROE(5y)19.13%
ROIC(3y)15.48%
ROIC(5y)14.92%
1.3 Margins
The Profit Margin of SNA (20.14%) is better than 96.09% of its industry peers.
In the last couple of years the Profit Margin of SNA has grown nicely.
SNA's Operating Margin of 26.26% is amongst the best of the industry. SNA outperforms 97.66% of its industry peers.
SNA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 52.05%, SNA belongs to the top of the industry, outperforming 92.97% of the companies in the same industry.
In the last couple of years the Gross Margin of SNA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.26% | ||
| PM (TTM) | 20.14% | ||
| GM | 52.05% |
OM growth 3Y3.13%
OM growth 5Y2.7%
PM growth 3Y4.65%
PM growth 5Y3.69%
GM growth 3Y-0.94%
GM growth 5Y-0.63%
2. Health
2.1 Basic Checks
SNA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SNA has less shares outstanding
The number of shares outstanding for SNA has been reduced compared to 5 years ago.
The debt/assets ratio for SNA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.81 indicates that SNA is not in any danger for bankruptcy at the moment.
SNA's Altman-Z score of 6.81 is amongst the best of the industry. SNA outperforms 87.50% of its industry peers.
SNA has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
SNA's Debt to FCF ratio of 1.11 is amongst the best of the industry. SNA outperforms 82.03% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that SNA is not too dependend on debt financing.
SNA's Debt to Equity ratio of 0.21 is fine compared to the rest of the industry. SNA outperforms 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 6.81 |
ROIC/WACC1.48
WACC9.92%
2.3 Liquidity
SNA has a Current Ratio of 4.14. This indicates that SNA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SNA (4.14) is better than 87.50% of its industry peers.
A Quick Ratio of 3.18 indicates that SNA has no problem at all paying its short term obligations.
SNA has a Quick ratio of 3.18. This is amongst the best in the industry. SNA outperforms 89.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.14 | ||
| Quick Ratio | 3.18 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.06% over the past year.
Measured over the past years, SNA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.53% on average per year.
SNA shows a decrease in Revenue. In the last year, the revenue decreased by -0.88%.
The Revenue has been growing slightly by 4.66% on average over the past years.
EPS 1Y (TTM)1.06%
EPS 3Y9.01%
EPS 5Y9.53%
EPS Q2Q%-5.05%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%-3.48%
3.2 Future
SNA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.58% yearly.
The Revenue is expected to grow by 3.24% on average over the next years.
EPS Next Y-2.26%
EPS Next 2Y2.56%
EPS Next 3Y5.02%
EPS Next 5Y4.58%
Revenue Next Year-0.9%
Revenue Next 2Y1.77%
Revenue Next 3Y3.39%
Revenue Next 5Y3.24%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.64, which indicates a correct valuation of SNA.
Compared to the rest of the industry, the Price/Earnings ratio of SNA indicates a somewhat cheap valuation: SNA is cheaper than 74.22% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SNA to the average of the S&P500 Index (27.21), we can say SNA is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.63, SNA is valued correctly.
SNA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SNA is cheaper than 68.75% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. SNA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 15.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNA is valued a bit cheaper than 64.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SNA is valued a bit cheaper than 78.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.35 | ||
| EV/EBITDA | 11.23 |
4.3 Compensation for Growth
SNA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.75
EPS Next 2Y2.56%
EPS Next 3Y5.02%
5. Dividend
5.1 Amount
SNA has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
SNA's Dividend Yield is rather good when compared to the industry average which is at 1.88. SNA pays more dividend than 88.28% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, SNA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
The dividend of SNA is nicely growing with an annual growth rate of 21.21%!
SNA has been paying a dividend for at least 10 years, so it has a reliable track record.
SNA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)21.21%
Div Incr Years15
Div Non Decr Years21
5.3 Sustainability
SNA pays out 41.18% of its income as dividend. This is a bit on the high side, but may be sustainable.
SNA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.18%
EPS Next 2Y2.56%
EPS Next 3Y5.02%
317.86
+6.68 (+2.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.37%
Inst Owner Change3.06%
Ins Owners2.26%
Ins Owner Change5.2%
Market Cap16.62B
Analysts70.67
Price Target338.7 (6.56%)
Short Float %4.93%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend7.74
Dividend Growth(5Y)21.21%
DP41.18%
Div Incr Years15
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4%
Min EPS beat(2)-7.21%
Max EPS beat(2)-0.79%
EPS beat(4)2
Avg EPS beat(4)-1.23%
Min EPS beat(4)-7.21%
Max EPS beat(4)1.62%
EPS beat(8)6
Avg EPS beat(8)0.46%
EPS beat(12)10
Avg EPS beat(12)2.57%
EPS beat(16)14
Avg EPS beat(16)4.32%
Revenue beat(2)0
Avg Revenue beat(2)-3.16%
Min Revenue beat(2)-5.46%
Max Revenue beat(2)-0.85%
Revenue beat(4)0
Avg Revenue beat(4)-2.66%
Min Revenue beat(4)-5.46%
Max Revenue beat(4)-0.85%
Revenue beat(8)1
Avg Revenue beat(8)-1.82%
Revenue beat(12)5
Avg Revenue beat(12)1.99%
Revenue beat(16)9
Avg Revenue beat(16)4.59%
PT rev (1m)0%
PT rev (3m)-4.38%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-8.66%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-5.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.89%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 15.63 | ||
| P/S | 3.28 | ||
| P/FCF | 15.35 | ||
| P/OCF | 14.24 | ||
| P/B | 3.01 | ||
| P/tB | 3.98 | ||
| EV/EBITDA | 11.23 |
EPS(TTM)19.1
EY6.01%
EPS(NY)20.34
Fwd EY6.4%
FCF(TTM)20.71
FCFY6.51%
OCF(TTM)22.32
OCFY7.02%
SpS96.95
BVpS105.58
TBVpS79.78
PEG (NY)N/A
PEG (5Y)1.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 18.49% | ||
| ROCE | 18.83% | ||
| ROIC | 14.66% | ||
| ROICexc | 18.4% | ||
| ROICexgc | 24.19% | ||
| OM | 26.26% | ||
| PM (TTM) | 20.14% | ||
| GM | 52.05% | ||
| FCFM | 21.36% |
ROA(3y)13.23%
ROA(5y)12.28%
ROE(3y)19.88%
ROE(5y)19.13%
ROIC(3y)15.48%
ROIC(5y)14.92%
ROICexc(3y)18.4%
ROICexc(5y)17.68%
ROICexgc(3y)24.34%
ROICexgc(5y)23.83%
ROCE(3y)19.9%
ROCE(5y)19.19%
ROICexcg growth 3Y1.01%
ROICexcg growth 5Y4.01%
ROICexc growth 3Y3.09%
ROICexc growth 5Y4.16%
OM growth 3Y3.13%
OM growth 5Y2.7%
PM growth 3Y4.65%
PM growth 5Y3.69%
GM growth 3Y-0.94%
GM growth 5Y-0.63%
F-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 86.77% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 30.25 | ||
| Cash Conversion | 81.71% | ||
| Profit Quality | 106.05% | ||
| Current Ratio | 4.14 | ||
| Quick Ratio | 3.18 | ||
| Altman-Z | 6.81 |
F-Score7
WACC9.92%
ROIC/WACC1.48
Cap/Depr(3y)88.3%
Cap/Depr(5y)79.93%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.68%
Profit Quality(3y)92.74%
Profit Quality(5y)107.58%
High Growth Momentum
Growth
EPS 1Y (TTM)1.06%
EPS 3Y9.01%
EPS 5Y9.53%
EPS Q2Q%-5.05%
EPS Next Y-2.26%
EPS Next 2Y2.56%
EPS Next 3Y5.02%
EPS Next 5Y4.58%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%-3.48%
Revenue Next Year-0.9%
Revenue Next 2Y1.77%
Revenue Next 3Y3.39%
Revenue Next 5Y3.24%
EBIT growth 1Y-0.28%
EBIT growth 3Y6.79%
EBIT growth 5Y7.48%
EBIT Next Year7%
EBIT Next 3Y7.48%
EBIT Next 5Y-0.89%
FCF growth 1Y55.58%
FCF growth 3Y8.15%
FCF growth 5Y14.54%
OCF growth 1Y49.1%
OCF growth 3Y8%
OCF growth 5Y12.53%