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 is not valued too expensively and it also shows a decent growth rate. SNA also has an excellent dividend rating. This makes SNA very considerable 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.
SNA had positive earnings in each of the past 5 years.
Each year in the past 5 years SNA had a positive operating cash flow.
1.2 Ratios
SNA has a Return On Assets of 13.22%. This is amongst the best in the industry. SNA outperforms 89.60% of its industry peers.
SNA has a better Return On Equity (19.35%) than 82.40% of its industry peers.
SNA has a better Return On Invested Capital (15.33%) than 87.20% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SNA is above the industry average of 11.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.22% | ||
| ROE | 19.35% | ||
| ROIC | 15.33% |
ROA(3y)13.23%
ROA(5y)12.28%
ROE(3y)19.88%
ROE(5y)19.13%
ROIC(3y)15.37%
ROIC(5y)14.86%
1.3 Margins
Looking at the Profit Margin, with a value of 20.43%, SNA belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
SNA's Profit Margin has improved in the last couple of years.
SNA's Operating Margin of 26.78% is amongst the best of the industry. SNA outperforms 98.40% of its industry peers.
In the last couple of years the Operating Margin of SNA has grown nicely.
With an excellent Gross Margin value of 51.97%, SNA belongs to the best of the industry, outperforming 94.40% 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 | 26.78% | ||
| PM (TTM) | 20.43% | ||
| GM | 51.97% |
OM growth 3Y2.57%
OM growth 5Y2.36%
PM growth 3Y4.65%
PM growth 5Y3.69%
GM growth 3Y-0.94%
GM growth 5Y-0.63%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SNA is creating some value.
SNA has less shares outstanding than it did 1 year ago.
SNA has less shares outstanding than it did 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 7.28 indicates that SNA is not in any danger for bankruptcy at the moment.
The Altman-Z score of SNA (7.28) is better than 88.80% of its industry peers.
The Debt to FCF ratio of SNA is 1.06, which is an excellent value as it means it would take SNA, only 1.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SNA (1.06) is better than 86.40% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that SNA is not too dependend on debt financing.
SNA has a Debt to Equity ratio of 0.22. This is in the better half of the industry: SNA outperforms 65.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 7.28 |
ROIC/WACC1.46
WACC10.49%
2.3 Liquidity
A Current Ratio of 4.15 indicates that SNA has no problem at all paying its short term obligations.
SNA has a Current ratio of 4.15. This is amongst the best in the industry. SNA outperforms 88.80% of its industry peers.
A Quick Ratio of 3.17 indicates that SNA has no problem at all paying its short term obligations.
SNA has a better Quick ratio (3.17) than 89.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.15 | ||
| Quick Ratio | 3.17 |
3. Growth
3.1 Past
SNA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.15%.
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 small growth in Revenue. In the last year, the Revenue has grown by 0.00%.
SNA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.66% yearly.
EPS 1Y (TTM)3.15%
EPS 3Y9.01%
EPS 5Y9.53%
EPS Q2Q%1.47%
Revenue 1Y (TTM)0%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%0.18%
3.2 Future
The Earnings Per Share is expected to grow by 5.05% on average over the next years.
SNA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.49% yearly.
EPS Next Y3.41%
EPS Next 2Y5.28%
EPS Next 3Y5.44%
EPS Next 5Y5.05%
Revenue Next Year3.69%
Revenue Next 2Y4.05%
Revenue Next 3Y4.66%
Revenue Next 5Y4.49%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 17.37, SNA is valued on the expensive side.
Based on the Price/Earnings ratio, SNA is valued a bit cheaper than 75.20% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, SNA is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.79, SNA is valued correctly.
Based on the Price/Forward Earnings ratio, SNA is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, SNA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.37 | ||
| Fwd PE | 16.79 |
4.2 Price Multiples
69.60% of the companies in the same industry are more expensive than SNA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SNA is valued cheaper than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.55 | ||
| EV/EBITDA | 12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SNA may justify a higher PE ratio.
PEG (NY)5.1
PEG (5Y)1.82
EPS Next 2Y5.28%
EPS Next 3Y5.44%
5. Dividend
5.1 Amount
SNA has a Yearly Dividend Yield of 2.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.67, SNA pays a better dividend. On top of this SNA pays more dividend than 89.60% of the companies listed in the same industry.
SNA's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
The dividend of SNA is nicely growing with an annual growth rate of 21.18%!
SNA has paid a dividend for at least 10 years, which is 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)21.18%
Div Incr Years15
Div Non Decr Years21
5.3 Sustainability
38.93% of the earnings are spent on dividend by SNA. This is a low number and sustainable payout ratio.
SNA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.93%
EPS Next 2Y5.28%
EPS Next 3Y5.44%
335.88
-2.61 (-0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.6%
Inst Owner Change1.95%
Ins Owners2.05%
Ins Owner Change2.27%
Market Cap17.63B
Analysts67.5
Price Target350.73 (4.42%)
Short Float %4.12%
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
Yearly Dividend7.73
Dividend Growth(5Y)21.18%
DP38.93%
Div Incr Years15
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.33%
Min EPS beat(2)-0.79%
Max EPS beat(2)1.46%
EPS beat(4)3
Avg EPS beat(4)0.9%
Min EPS beat(4)-0.79%
Max EPS beat(4)1.62%
EPS beat(8)7
Avg EPS beat(8)2.59%
EPS beat(12)11
Avg EPS beat(12)3.85%
EPS beat(16)15
Avg EPS beat(16)5.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.37%
Min Revenue beat(2)-1.88%
Max Revenue beat(2)-0.85%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)-0.85%
Revenue beat(8)2
Avg Revenue beat(8)0.28%
Revenue beat(12)6
Avg Revenue beat(12)3.46%
Revenue beat(16)10
Avg Revenue beat(16)6.08%
PT rev (1m)-0.12%
PT rev (3m)9.63%
EPS NQ rev (1m)-2.74%
EPS NQ rev (3m)-3.9%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)-1.58%
Revenue NQ rev (1m)-1.06%
Revenue NQ rev (3m)-2.34%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.37 | ||
| Fwd PE | 16.79 | ||
| P/S | 3.45 | ||
| P/FCF | 15.55 | ||
| P/OCF | 14.48 | ||
| P/B | 3.27 | ||
| P/tB | 4.33 | ||
| EV/EBITDA | 12 |
EPS(TTM)19.34
EY5.76%
EPS(NY)20
Fwd EY5.95%
FCF(TTM)21.6
FCFY6.43%
OCF(TTM)23.19
OCFY6.91%
SpS97.32
BVpS102.76
TBVpS77.53
PEG (NY)5.1
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.22% | ||
| ROE | 19.35% | ||
| ROCE | 19.73% | ||
| ROIC | 15.33% | ||
| ROICexc | 19.07% | ||
| ROICexgc | 24.99% | ||
| OM | 26.78% | ||
| PM (TTM) | 20.43% | ||
| GM | 51.97% | ||
| FCFM | 22.2% |
ROA(3y)13.23%
ROA(5y)12.28%
ROE(3y)19.88%
ROE(5y)19.13%
ROIC(3y)15.37%
ROIC(5y)14.86%
ROICexc(3y)18.26%
ROICexc(5y)17.6%
ROICexgc(3y)24.15%
ROICexgc(5y)23.71%
ROCE(3y)19.79%
ROCE(5y)19.13%
ROICexcg growth 3Y0.34%
ROICexcg growth 5Y3.6%
ROICexc growth 3Y2.43%
ROICexc growth 5Y3.76%
OM growth 3Y2.57%
OM growth 5Y2.36%
PM growth 3Y4.65%
PM growth 5Y3.69%
GM growth 3Y-0.94%
GM growth 5Y-0.63%
F-Score7
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 85.2% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 31.02 | ||
| Cash Conversion | 83.04% | ||
| Profit Quality | 108.63% | ||
| Current Ratio | 4.15 | ||
| Quick Ratio | 3.17 | ||
| Altman-Z | 7.28 |
F-Score7
WACC10.49%
ROIC/WACC1.46
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)3.15%
EPS 3Y9.01%
EPS 5Y9.53%
EPS Q2Q%1.47%
EPS Next Y3.41%
EPS Next 2Y5.28%
EPS Next 3Y5.44%
EPS Next 5Y5.05%
Revenue 1Y (TTM)0%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%0.18%
Revenue Next Year3.69%
Revenue Next 2Y4.05%
Revenue Next 3Y4.66%
Revenue Next 5Y4.49%
EBIT growth 1Y4.41%
EBIT growth 3Y6.2%
EBIT growth 5Y7.13%
EBIT Next Year10.76%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y7.06%
FCF growth 3Y8.15%
FCF growth 5Y14.54%
OCF growth 1Y5.48%
OCF growth 3Y8%
OCF growth 5Y12.53%