SNAP-ON INC (SNA) Stock Fundamental Analysis
USA - NYSE:SNA - US8330341012 - Common Stock
335.9 USD
+4.68 (+1.41%)
335.9 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to SNA. SNA was compared to 130 industry peers in the Machinery industry. SNA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SNA has a correct valuation and a medium growth rate.
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.
SNA had positive earnings in each of the past 5 years.
In the past 5 years SNA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.14%, SNA belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
SNA has a Return On Equity of 17.43%. This is amongst the best in the industry. SNA outperforms 80.77% of its industry peers.
With an excellent Return On Invested Capital value of 13.97%, SNA belongs to the best of the industry, outperforming 85.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SNA is significantly above the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 17.43% | ||
| ROIC | 13.97% |
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 (19.83%) is better than 96.92% of its industry peers.
In the last couple of years the Profit Margin of SNA has grown nicely.
SNA's Operating Margin of 25.80% is amongst the best of the industry. SNA outperforms 97.69% 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 51.81%, SNA belongs to the top of the industry, outperforming 93.08% of the companies in the same industry.
SNA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.8% | ||
| PM (TTM) | 19.83% | ||
| GM | 51.81% |
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.
The number of shares outstanding for SNA has been reduced compared to 1 year ago.
Compared to 5 years ago, SNA has less shares outstanding
Compared to 1 year ago, SNA has an improved debt to assets ratio.
2.2 Solvency
SNA has an Altman-Z score of 7.04. This indicates that SNA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SNA (7.04) is better than 89.23% of its industry peers.
SNA has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.18, SNA belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that SNA is not too dependend on debt financing.
SNA's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. SNA outperforms 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 7.04 |
ROIC/WACC1.5
WACC9.32%
2.3 Liquidity
SNA has a Current Ratio of 4.40. This indicates that SNA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SNA (4.40) is better than 90.00% of its industry peers.
SNA has a Quick Ratio of 3.37. This indicates that SNA is financially healthy and has no problem in meeting its short term obligations.
SNA has a Quick ratio of 3.37. This is amongst the best in the industry. SNA outperforms 91.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.4 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
SNA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.04%.
The Earnings Per Share has been growing by 9.53% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.24% in the past year.
SNA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.66% yearly.
EPS 1Y (TTM)-1.04%
EPS 3Y9.01%
EPS 5Y9.53%
EPS Q2Q%6.81%
Revenue 1Y (TTM)0.24%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%3.82%
3.2 Future
SNA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.26% yearly.
The Revenue is expected to grow by 4.36% on average over the next years.
EPS Next Y0.03%
EPS Next 2Y2.92%
EPS Next 3Y4.08%
EPS Next 5Y8.26%
Revenue Next Year0.55%
Revenue Next 2Y1.97%
Revenue Next 3Y2.87%
Revenue Next 5Y4.36%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.61 indicates a rather expensive valuation of SNA.
Based on the Price/Earnings ratio, SNA is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
SNA is valuated rather cheaply when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.40 indicates a correct valuation of SNA.
66.15% of the companies in the same industry are more expensive than SNA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, SNA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.61 | ||
| Fwd PE | 16.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SNA indicates a somewhat cheap valuation: SNA is cheaper than 66.15% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SNA is valued a bit cheaper than the industry average as 73.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.02 | ||
| EV/EBITDA | 11.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SNA does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of SNA may justify a higher PE ratio.
PEG (NY)654.26
PEG (5Y)1.85
EPS Next 2Y2.92%
EPS Next 3Y4.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.90%, SNA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.87, SNA pays a better dividend. On top of this SNA pays more dividend than 91.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, SNA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
On average, the dividend of SNA grows each year by 21.21%, which is quite nice.
SNA has paid a dividend for at least 10 years, which is a reliable track record.
SNA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)21.21%
Div Incr Years15
Div Non Decr Years21
5.3 Sustainability
SNA pays out 44.15% 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.
DP44.15%
EPS Next 2Y2.92%
EPS Next 3Y4.08%
335.9
+4.68 (+1.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.46%
Inst Owner Change-5.14%
Ins Owners2.29%
Ins Owner Change1.72%
Market Cap17.47B
Revenue(TTM)5.12B
Net Income(TTM)1.01B
Analysts70.67
Price Target355.58 (5.86%)
Short Float %4.34%
Short Ratio6.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend7.74
Dividend Growth(5Y)21.21%
DP44.15%
Div Incr Years15
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.1%
Min EPS beat(2)0.89%
Max EPS beat(2)7.31%
EPS beat(4)2
Avg EPS beat(4)0.05%
Min EPS beat(4)-7.21%
Max EPS beat(4)7.31%
EPS beat(8)6
Avg EPS beat(8)0.68%
EPS beat(12)10
Avg EPS beat(12)2.16%
EPS beat(16)14
Avg EPS beat(16)3.57%
Revenue beat(2)2
Avg Revenue beat(2)1.42%
Min Revenue beat(2)0.98%
Max Revenue beat(2)1.86%
Revenue beat(4)2
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-5.46%
Max Revenue beat(4)1.86%
Revenue beat(8)2
Avg Revenue beat(8)-1.45%
Revenue beat(12)5
Avg Revenue beat(12)0.54%
Revenue beat(16)9
Avg Revenue beat(16)2.94%
PT rev (1m)2.76%
PT rev (3m)2.95%
EPS NQ rev (1m)0.74%
EPS NQ rev (3m)0.74%
EPS NY rev (1m)1.8%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)1.06%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0.86%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.61 | ||
| Fwd PE | 16.4 | ||
| P/S | 3.42 | ||
| P/FCF | 17.02 | ||
| P/OCF | 15.78 | ||
| P/B | 3 | ||
| P/tB | 3.94 | ||
| EV/EBITDA | 11.92 |
EPS(TTM)19.07
EY5.68%
EPS(NY)20.49
Fwd EY6.1%
FCF(TTM)19.74
FCFY5.88%
OCF(TTM)21.29
OCFY6.34%
SpS98.35
BVpS111.88
TBVpS85.33
PEG (NY)654.26
PEG (5Y)1.85
Graham Number219.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.14% | ||
| ROE | 17.43% | ||
| ROCE | 17.94% | ||
| ROIC | 13.97% | ||
| ROICexc | 17.65% | ||
| ROICexgc | 23.13% | ||
| OM | 25.8% | ||
| PM (TTM) | 19.83% | ||
| GM | 51.81% | ||
| FCFM | 20.07% |
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%
ROICexgc growth 3Y1.01%
ROICexgc 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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 82.67% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 29.86 | ||
| Cash Conversion | 78.1% | ||
| Profit Quality | 101.2% | ||
| Current Ratio | 4.4 | ||
| Quick Ratio | 3.37 | ||
| Altman-Z | 7.04 |
F-Score7
WACC9.32%
ROIC/WACC1.5
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)-1.04%
EPS 3Y9.01%
EPS 5Y9.53%
EPS Q2Q%6.81%
EPS Next Y0.03%
EPS Next 2Y2.92%
EPS Next 3Y4.08%
EPS Next 5Y8.26%
Revenue 1Y (TTM)0.24%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%3.82%
Revenue Next Year0.55%
Revenue Next 2Y1.97%
Revenue Next 3Y2.87%
Revenue Next 5Y4.36%
EBIT growth 1Y-3.09%
EBIT growth 3Y6.79%
EBIT growth 5Y7.48%
EBIT Next Year0.88%
EBIT Next 3Y5.02%
EBIT Next 5Y3.26%
FCF growth 1Y5.68%
FCF growth 3Y8.15%
FCF growth 5Y14.54%
OCF growth 1Y3.67%
OCF growth 3Y8%
OCF growth 5Y12.53%
SNAP-ON INC / SNA FAQ
Can you provide the ChartMill fundamental rating for SNAP-ON INC?
ChartMill assigns a fundamental rating of 7 / 10 to SNA.
What is the valuation status of SNAP-ON INC (SNA) stock?
ChartMill assigns a valuation rating of 5 / 10 to SNAP-ON INC (SNA). This can be considered as Fairly Valued.
What is the profitability of SNA stock?
SNAP-ON INC (SNA) has a profitability rating of 9 / 10.
Can you provide the financial health for SNA stock?
The financial health rating of SNAP-ON INC (SNA) is 9 / 10.
Is the dividend of SNAP-ON INC sustainable?
The dividend rating of SNAP-ON INC (SNA) is 6 / 10 and the dividend payout ratio is 44.15%.