SNAP-ON INC (SNA) Stock Fundamental Analysis
NYSE:SNA - New York Stock Exchange, Inc. - US8330341012 - Common Stock
Overall SNA gets a fundamental rating of 7 out of 10. We evaluated SNA against 131 industry peers in the Machinery industry. SNA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SNA has a valuation in line with the averages, but it does not seem to be growing. Finally SNA also has an excellent dividend rating. These ratings would make SNA suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year SNA was profitable.
In the past year SNA had a positive cash flow from operations.
Each year in the past 5 years SNA has 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 (13.09%) is better than 89.76% of its industry peers.
SNA's Return On Equity of 19.02% is fine compared to the rest of the industry. SNA outperforms 79.53% of its industry peers.
SNA has a better Return On Invested Capital (15.11%) than 85.83% of its industry peers.
SNA had an Average Return On Invested Capital over the past 3 years of 15.36%. This is above the industry average of 11.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.09% | ||
| ROE | 19.02% | ||
| ROIC | 15.11% |
ROA(3y)12.87%
ROA(5y)12.07%
ROE(3y)19.97%
ROE(5y)19.33%
ROIC(3y)15.36%
ROIC(5y)14.82%
1.3 Margins
SNA has a better Profit Margin (20.40%) than 96.85% of its industry peers.
SNA's Profit Margin has improved in the last couple of years.
The Operating Margin of SNA (26.69%) is better than 98.43% of its industry peers.
SNA's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 51.69%, SNA belongs to the best of the industry, outperforming 94.49% 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 | 26.69% | ||
| PM (TTM) | 20.4% | ||
| GM | 51.69% |
OM growth 3Y3.67%
OM growth 5Y1.82%
PM growth 3Y7.56%
PM growth 5Y3.45%
GM growth 3Y-1.44%
GM growth 5Y-1.04%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SNA is still creating some value.
SNA has less shares outstanding than it did 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
An Altman-Z score of 7.48 indicates that SNA is not in any danger for bankruptcy at the moment.
The Altman-Z score of SNA (7.48) is better than 85.83% of its industry peers.
SNA has a debt to FCF ratio of 1.06. This is a very positive value and a sign of high solvency as it would only need 1.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.06, SNA belongs to the top of the industry, outperforming 88.98% of the companies in the same industry.
SNA has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
SNA's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. SNA outperforms 66.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 7.48 |
ROIC/WACC1.59
WACC9.49%
2.3 Liquidity
SNA has a Current Ratio of 4.18. This indicates that SNA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.18, SNA belongs to the top of the industry, outperforming 88.19% of the companies in the same industry.
SNA has a Quick Ratio of 3.14. This indicates that SNA is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SNA (3.14) is better than 88.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.18 | ||
| Quick Ratio | 3.14 |
3. Growth
3.1 Past
SNA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.61%.
Measured over the past years, SNA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.69% on average per year.
The Revenue has been growing slightly by 0.88% in the past year.
Measured over the past years, SNA shows a small growth in Revenue. The Revenue has been growing by 4.65% on average per year.
EPS 1Y (TTM)4.61%
EPS 3Y17.26%
EPS 5Y9.69%
EPS Q2Q%4.21%
Revenue 1Y (TTM)0.88%
Revenue growth 3Y9.02%
Revenue growth 5Y4.65%
Sales Q2Q%-1.06%
3.2 Future
Based on estimates for the next years, SNA will show a small growth in Earnings Per Share. The EPS will grow by 4.67% on average per year.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y4.59%
EPS Next 2Y4.12%
EPS Next 3Y4.97%
EPS Next 5Y4.67%
Revenue Next Year-0.36%
Revenue Next 2Y1.73%
Revenue Next 3Y2.57%
Revenue Next 5Y3.5%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.38 indicates a rather expensive valuation of SNA.
Based on the Price/Earnings ratio, SNA is valued a bit cheaper than 72.44% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, SNA is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.42, which indicates a rather expensive current valuation of SNA.
71.65% of the companies in the same industry are more expensive than SNA, based on the Price/Forward Earnings ratio.
SNA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 17.42 |
4.2 Price Multiples
65.35% of the companies in the same industry are more expensive than SNA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SNA indicates a rather cheap valuation: SNA is cheaper than 83.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.39 | ||
| EV/EBITDA | 12.64 |
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.
SNA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4
PEG (5Y)1.9
EPS Next 2Y4.12%
EPS Next 3Y4.97%
5. Dividend
5.1 Amount
SNA has a Yearly Dividend Yield of 2.48%.
SNA's Dividend Yield is rather good when compared to the industry average which is at 1.65. SNA pays more dividend than 90.55% of the companies in the same industry.
SNA's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
On average, the dividend of SNA grows each year by 25.04%, which is quite nice.
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)25.04%
Div Incr Years15
Div Non Decr Years21
5.3 Sustainability
37.66% of the earnings are spent on dividend by SNA. This is a low number and sustainable payout ratio.
The dividend of SNA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP37.66%
EPS Next 2Y4.12%
EPS Next 3Y4.97%
SNAP-ON INC
NYSE:SNA (1/21/2025, 8:04:00 PM)
After market: 354.18 0 (0%)354.18
+5.68 (+1.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.6%
Inst Owner Change-0.15%
Ins Owners2.05%
Ins Owner Change1.87%
Market Cap18.59B
Analysts67.5
Price Target351.17 (-0.85%)
Short Float %4.12%
Short Ratio5.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend6.73
Dividend Growth(5Y)25.04%
DP37.66%
Div Incr Years15
Div Non Decr Years21
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.54%
Min EPS beat(2)1.46%
Max EPS beat(2)1.62%
EPS beat(4)4
Avg EPS beat(4)1.31%
Min EPS beat(4)0.86%
Max EPS beat(4)1.62%
EPS beat(8)8
Avg EPS beat(8)3.21%
EPS beat(12)12
Avg EPS beat(12)4.75%
EPS beat(16)16
Avg EPS beat(16)7.45%
Revenue beat(2)0
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-2.45%
Max Revenue beat(2)-1.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)-1.43%
Revenue beat(8)3
Avg Revenue beat(8)1.24%
Revenue beat(12)7
Avg Revenue beat(12)4.21%
Revenue beat(16)11
Avg Revenue beat(16)7.54%
PT rev (1m)1.18%
PT rev (3m)18.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)0%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 17.42 | ||
| P/S | 3.64 | ||
| P/FCF | 16.39 | ||
| P/OCF | 15.23 | ||
| P/B | 3.4 | ||
| P/tB | 4.52 | ||
| EV/EBITDA | 12.64 |
EPS(TTM)19.27
EY5.44%
EPS(NY)20.33
Fwd EY5.74%
FCF(TTM)21.61
FCFY6.1%
OCF(TTM)23.26
OCFY6.57%
SpS97.22
BVpS104.31
TBVpS78.32
PEG (NY)4
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.09% | ||
| ROE | 19.02% | ||
| ROCE | 19.47% | ||
| ROIC | 15.11% | ||
| ROICexc | 18.59% | ||
| ROICexgc | 24.45% | ||
| OM | 26.69% | ||
| PM (TTM) | 20.4% | ||
| GM | 51.69% | ||
| FCFM | 22.23% |
ROA(3y)12.87%
ROA(5y)12.07%
ROE(3y)19.97%
ROE(5y)19.33%
ROIC(3y)15.36%
ROIC(5y)14.82%
ROICexc(3y)17.81%
ROICexc(5y)16.94%
ROICexgc(3y)24.03%
ROICexgc(5y)22.89%
ROCE(3y)19.8%
ROCE(5y)19.27%
ROICexcg growth 3Y3.29%
ROICexcg growth 5Y1.48%
ROICexc growth 3Y4.88%
ROICexc growth 5Y1.78%
OM growth 3Y3.67%
OM growth 5Y1.82%
PM growth 3Y7.56%
PM growth 5Y3.45%
GM growth 3Y-1.44%
GM growth 5Y-1.04%
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 87.64% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 30.82 | ||
| Cash Conversion | 83.58% | ||
| Profit Quality | 108.96% | ||
| Current Ratio | 4.18 | ||
| Quick Ratio | 3.14 | ||
| Altman-Z | 7.48 |
F-Score7
WACC9.49%
ROIC/WACC1.59
Cap/Depr(3y)82.2%
Cap/Depr(5y)84.4%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.85%
Profit Quality(3y)92.95%
Profit Quality(5y)102.44%
High Growth Momentum
Growth
EPS 1Y (TTM)4.61%
EPS 3Y17.26%
EPS 5Y9.69%
EPS Q2Q%4.21%
EPS Next Y4.59%
EPS Next 2Y4.12%
EPS Next 3Y4.97%
EPS Next 5Y4.67%
Revenue 1Y (TTM)0.88%
Revenue growth 3Y9.02%
Revenue growth 5Y4.65%
Sales Q2Q%-1.06%
Revenue Next Year-0.36%
Revenue Next 2Y1.73%
Revenue Next 3Y2.57%
Revenue Next 5Y3.5%
EBIT growth 1Y5.06%
EBIT growth 3Y13.03%
EBIT growth 5Y6.55%
EBIT Next Year8.18%
EBIT Next 3Y6.16%
EBIT Next 5YN/A
FCF growth 1Y86.12%
FCF growth 3Y3.95%
FCF growth 5Y9.48%
OCF growth 1Y77.64%
OCF growth 3Y4.6%
OCF growth 5Y8.59%