SNAP-ON INC (SNA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SNA - US8330341012 - Common Stock
370.07 USD
+2.25 (+0.61%)
370.07 USD
0 (0%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. SNA is not valued too expensively and it also shows a decent growth rate. Finally SNA also has an excellent dividend rating. These ratings would make SNA suitable for dividend investing!
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.
- 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
- SNA has a better Return On Assets (12.14%) than 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.
- SNA's Return On Invested Capital of 13.97% is amongst the best of the industry. SNA outperforms 84.85% of its industry peers.
- 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 96.21% 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 96.97% 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 51.81%, SNA belongs to the best of the industry, outperforming 93.94% 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
- 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.
- The number of shares outstanding for SNA has been reduced compared to 5 years ago.
- SNA has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.51 indicates that SNA is not in any danger for bankruptcy at the moment.
- SNA has a Altman-Z score of 7.51. This is amongst the best in the industry. SNA outperforms 88.64% of its industry peers.
- The Debt to FCF ratio of SNA is 1.18, which is an excellent value as it means it would take SNA, only 1.18 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.18, SNA belongs to the top of the industry, outperforming 86.36% 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 has a better Debt to Equity ratio (0.20) 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
- A Current Ratio of 4.40 indicates that SNA has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 4.40, SNA belongs to the top 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.
- SNA has a Quick ratio of 3.37. This is amongst the best in the industry. SNA outperforms 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%.
- SNA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.53% yearly.
- SNA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.24%.
- 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.
- SNA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.36% yearly.
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
- 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.
- 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 19.41 indicates a rather expensive valuation of SNA.
- Based on the Price/Earnings ratio, SNA is valued a bit cheaper than 77.27% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, SNA is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 18.05, the valuation of SNA can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, SNA is valued a bit cheaper than 70.45% of the companies 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 | 19.41 | ||
| Fwd PE | 18.05 |
4.2 Price Multiples
- 65.91% 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 a bit cheaper than the industry average as 74.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.75 | ||
| EV/EBITDA | 13.35 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- SNA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)281.61
PEG (5Y)2.04
EPS Next 2Y2.96%
EPS Next 3Y4.27%
5. Dividend
5.1 Amount
- SNA has a Yearly Dividend Yield of 2.62%. Purely for dividend investing, there may be better candidates out there.
- SNA's Dividend Yield is rather good when compared to the industry average which is at 1.01. SNA pays more dividend than 92.42% of the companies 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
- 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 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.
- SNA's earnings are growing slower than its dividend. 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%.