SNAP-ON INC (SNA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SNA - US8330341012 - Common Stock
372.27 USD
+0.63 (+0.17%)
372.27 USD
0 (0%)
Overall SNA gets a fundamental rating of 7 out of 10. We evaluated SNA against 132 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 correct valuation and a medium growth rate. SNA also has an excellent dividend rating. These ratings could make SNA a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year SNA was profitable.
- SNA had a positive operating cash flow in the past year.
- Each year in the past 5 years SNA has been profitable.
- SNA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SNA has a Return On Assets of 12.14%. This is amongst the best in the industry. SNA outperforms 86.36% of its industry peers.
- SNA's Return On Equity of 17.43% is fine compared to the rest of the industry. SNA outperforms 79.55% of its industry peers.
- With an excellent Return On Invested Capital value of 13.97%, SNA belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
- SNA had an Average Return On Invested Capital over the past 3 years of 15.48%. This 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 96.21% of its industry peers.
- In the last couple of years the Profit Margin of SNA has grown nicely.
- SNA has a better Operating Margin (25.80%) than 96.97% of its industry peers.
- SNA's Operating Margin has improved in the last couple of years.
- SNA has a better Gross Margin (51.81%) than 93.94% of its industry peers.
- 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
- 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.
- Compared to 5 years ago, SNA has less shares outstanding
- SNA has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.54 indicates that SNA is not in any danger for bankruptcy at the moment.
- SNA has a Altman-Z score of 7.54. This is amongst the best in the industry. SNA outperforms 88.64% 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.
- The Debt to FCF ratio of SNA (1.18) is better than 87.12% of its industry peers.
- A Debt/Equity ratio of 0.20 indicates that SNA is not too dependend on debt financing.
- SNA has a better Debt to Equity ratio (0.20) than 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 7.54 |
ROIC/WACC1.45
WACC9.63%
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.
- SNA's Current ratio of 4.40 is amongst the best of the industry. SNA outperforms 89.39% of its industry peers.
- A Quick Ratio of 3.37 indicates that SNA has no problem at all paying its short term obligations.
- The Quick ratio of SNA (3.37) is better than 90.91% 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.
- Looking at the last year, SNA shows a small growth in Revenue. The Revenue has grown by 0.24% in the last 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
- The Earnings Per Share is expected to grow by 8.26% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.36% on average over the next years.
EPS Next Y0.07%
EPS Next 2Y2.96%
EPS Next 3Y4.27%
EPS Next 5Y8.26%
Revenue Next Year0.55%
Revenue Next 2Y1.97%
Revenue Next 3Y2.87%
Revenue Next 5Y4.36%
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 19.52, the valuation of SNA can be described as rather expensive.
- Based on the Price/Earnings ratio, SNA is valued a bit cheaper than 78.03% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SNA to the average of the S&P500 Index (27.32), we can say SNA is valued slightly cheaper.
- A Price/Forward Earnings ratio of 18.16 indicates a rather expensive valuation of SNA.
- Based on the Price/Forward Earnings ratio, SNA is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of SNA to the average of the S&P500 Index (24.32), we can say SNA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 18.16 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SNA is valued a bit cheaper than the industry average as 67.42% of the companies are valued more expensively.
- SNA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SNA is cheaper than 76.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.86 | ||
| EV/EBITDA | 13.43 |
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)283.29
PEG (5Y)2.05
EPS Next 2Y2.96%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
- SNA has a Yearly Dividend Yield of 2.69%.
- SNA's Dividend Yield is rather good when compared to the industry average which is at 0.98. SNA pays more dividend than 92.42% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, SNA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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 44.15% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of SNA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP44.15%
EPS Next 2Y2.96%
EPS Next 3Y4.27%
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.
Can you provide the valuation status for SNAP-ON INC?
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.
How financially healthy is SNAP-ON INC?
The financial health rating of SNAP-ON INC (SNA) is 9 / 10.
Can you provide the dividend sustainability for SNA stock?
The dividend rating of SNAP-ON INC (SNA) is 7 / 10 and the dividend payout ratio is 44.15%.