SNAP-ON INC (SNA) Stock Fundamental Analysis
NYSE:SNA - New York Stock Exchange, Inc. - US8330341012 - Common Stock - Currency: USD
SNA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 128 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 valued correctly, 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
SNA had positive earnings in the past year.
SNA had a positive operating cash flow in the past year.
In the past 5 years SNA has always been profitable.
SNA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SNA (13.22%) is better than 90.63% of its industry peers.
With an excellent Return On Equity value of 19.35%, SNA belongs to the best of the industry, outperforming 82.03% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.33%, SNA belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SNA is above the industry average of 10.67%.
| 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)15.46%
ROIC(5y)14.91%
1.3 Margins
The Profit Margin of SNA (20.43%) is better than 96.09% of its industry peers.
In the last couple of years the Profit Margin of SNA has grown nicely.
The Operating Margin of SNA (26.78%) is better than 97.66% of its industry peers.
SNA's Operating Margin has improved in the last couple of years.
SNA has a Gross Margin of 51.97%. This is amongst the best in the industry. SNA outperforms 93.75% 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 | 26.78% | ||
| PM (TTM) | 20.43% | ||
| GM | 51.97% |
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.
SNA has less shares outstanding than it did 1 year ago.
SNA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SNA has an improved debt to assets ratio.
2.2 Solvency
SNA has an Altman-Z score of 6.86. This indicates that SNA is financially healthy and has little risk of bankruptcy at the moment.
SNA has a better Altman-Z score (6.86) than 88.28% 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.
SNA has a Debt to FCF ratio of 1.06. This is amongst the best in the industry. SNA outperforms 87.50% of its industry peers.
SNA has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.22, SNA is doing good in the industry, outperforming 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 6.86 |
ROIC/WACC1.53
WACC9.99%
2.3 Liquidity
SNA has a Current Ratio of 4.15. This indicates that SNA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SNA (4.15) is better than 86.72% of its industry peers.
SNA has a Quick Ratio of 3.17. This indicates that SNA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.17, SNA belongs to the top of the industry, outperforming 89.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.15 | ||
| Quick Ratio | 3.17 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.06% over the past 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 0.00%.
SNA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.66% yearly.
EPS 1Y (TTM)1.06%
EPS 3Y9.01%
EPS 5Y9.53%
EPS Q2Q%-5.05%
Revenue 1Y (TTM)0%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%-3.48%
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 4.88% on average per year.
Based on estimates for the next years, SNA will show a small growth in Revenue. The Revenue will grow by 3.64% on average per year.
EPS Next Y1.81%
EPS Next 2Y4.5%
EPS Next 3Y5.35%
EPS Next 5Y4.88%
Revenue Next Year2.6%
Revenue Next 2Y3.41%
Revenue Next 3Y4.02%
Revenue Next 5Y3.64%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.99, which indicates a correct valuation of SNA.
SNA's Price/Earnings ratio is a bit cheaper when compared to the industry. SNA is cheaper than 67.19% of the companies in the same industry.
SNA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.46 indicates a correct valuation of SNA.
71.88% of the companies in the same industry are more expensive than SNA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.08. SNA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 14.46 |
4.2 Price Multiples
62.50% 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 somewhat cheap valuation: SNA is cheaper than 77.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.12 | ||
| EV/EBITDA | 10.8 |
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.
The excellent profitability rating of SNA may justify a higher PE ratio.
PEG (NY)8.81
PEG (5Y)1.68
EPS Next 2Y4.5%
EPS Next 3Y5.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.80%, SNA has a reasonable but not impressive dividend return.
SNA's Dividend Yield is rather good when compared to the industry average which is at 2.12. SNA pays more dividend than 90.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, SNA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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
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 2Y4.5%
EPS Next 3Y5.35%
305.44
-26.56 (-8%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.19%
Inst Owner Change0.05%
Ins Owners2.11%
Ins Owner Change5.35%
Market Cap16.01B
Analysts68.75
Price Target350.02 (14.6%)
Short Float %4.17%
Short Ratio5.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend7.74
Dividend Growth(5Y)21.21%
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)-0.99%
PT rev (3m)-0.33%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-2.85%
EPS NY rev (1m)-1.45%
EPS NY rev (3m)-3.13%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.99 | ||
| Fwd PE | 14.46 | ||
| P/S | 3.13 | ||
| P/FCF | 14.12 | ||
| P/OCF | 13.15 | ||
| P/B | 2.97 | ||
| P/tB | 3.93 | ||
| EV/EBITDA | 10.8 |
EPS(TTM)19.1
EY6.25%
EPS(NY)21.12
Fwd EY6.91%
FCF(TTM)21.63
FCFY7.08%
OCF(TTM)23.23
OCFY7.6%
SpS97.45
BVpS102.9
TBVpS77.64
PEG (NY)8.81
PEG (5Y)1.68
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)15.46%
ROIC(5y)14.91%
ROICexc(3y)18.37%
ROICexc(5y)17.66%
ROICexgc(3y)24.28%
ROICexgc(5y)23.79%
ROCE(3y)19.9%
ROCE(5y)19.19%
ROICexcg growth 3Y0.9%
ROICexcg growth 5Y3.94%
ROICexc growth 3Y3%
ROICexc growth 5Y4.11%
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%
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 | 6.86 |
F-Score7
WACC9.99%
ROIC/WACC1.53
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)1.06%
EPS 3Y9.01%
EPS 5Y9.53%
EPS Q2Q%-5.05%
EPS Next Y1.81%
EPS Next 2Y4.5%
EPS Next 3Y5.35%
EPS Next 5Y4.88%
Revenue 1Y (TTM)0%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%-3.48%
Revenue Next Year2.6%
Revenue Next 2Y3.41%
Revenue Next 3Y4.02%
Revenue Next 5Y3.64%
EBIT growth 1Y4.41%
EBIT growth 3Y6.79%
EBIT growth 5Y7.48%
EBIT Next Year11.72%
EBIT Next 3Y8.12%
EBIT Next 5Y-0.89%
FCF growth 1Y7.06%
FCF growth 3Y8.15%
FCF growth 5Y14.54%
OCF growth 1Y5.48%
OCF growth 3Y8%
OCF growth 5Y12.53%