SNAP-ON INC (SNA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SNA - US8330341012 - Common Stock
366.03 USD
-4.04 (-1.09%)
Taking everything into account, SNA scores 7 out of 10 in our fundamental rating. SNA was compared to 132 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 is not valued too expensively and it also shows a decent growth rate. Finally 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.
- 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
- With an excellent Return On Assets value of 12.14%, SNA belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- SNA has a better Return On Equity (17.43%) than 79.55% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.97%, SNA belongs to the top of the industry, outperforming 84.85% 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
- SNA's Profit Margin of 19.83% is amongst the best of the industry. SNA outperforms 96.21% of its industry peers.
- SNA's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 25.80%, SNA belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
- SNA's Operating Margin has improved in the last couple of years.
- SNA's Gross Margin of 51.81% is amongst the best of the industry. SNA outperforms 93.94% of its industry peers.
- 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 | 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SNA is still 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
- SNA has an Altman-Z score of 7.51. This indicates that SNA is financially healthy and has little risk of bankruptcy at the moment.
- SNA's Altman-Z score of 7.51 is amongst the best of 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 86.36% of its industry peers.
- SNA has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of SNA (0.20) is better than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 7.51 |
ROIC/WACC1.47
WACC9.48%
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.
- With an excellent Current ratio value of 4.40, SNA belongs to the best of the industry, outperforming 89.39% of the companies in the same industry.
- A Quick Ratio of 3.37 indicates that SNA has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 3.37, SNA belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.4 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
- The earnings per share for SNA have decreased by -1.04% in the last year.
- The Earnings Per Share has been growing by 9.53% on average over the past years. This is quite good.
- SNA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.24%.
- The Revenue has been growing slightly by 4.66% on average over the past years.
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 Year0.57%
Revenue Next 2Y1.98%
Revenue Next 3Y2.88%
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.
- 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 19.19, the valuation of SNA can be described as rather expensive.
- Based on the Price/Earnings ratio, SNA is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.60. SNA is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 17.85, which indicates a rather expensive current valuation of SNA.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SNA indicates a somewhat cheap valuation: SNA is cheaper than 70.45% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, SNA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.19 | ||
| Fwd PE | 17.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SNA is valued a bit cheaper than 65.91% of the companies in the same industry.
- SNA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SNA is cheaper than 74.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.55 | ||
| EV/EBITDA | 13.35 |
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)278.54
PEG (5Y)2.01
EPS Next 2Y2.96%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.62%, SNA has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.01, SNA pays a better dividend. On top of this SNA pays more dividend than 92.42% of the companies listed in the same industry.
- SNA's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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%.