NYSE:SNA

Stock Analysis Report

Executive Summary

Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Snap-on's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.1%

SNA

-1.9%

US Machinery

-0.2%

US Market


1 Year Return

-17.4%

SNA

-6.8%

US Machinery

1.1%

US Market

SNA underperformed the Machinery industry which returned -6.8% over the past year.

SNA underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

SNAIndustryMarket
7 Day-4.1%-1.9%-0.2%
30 Day5.0%6.4%2.5%
90 Day-3.8%-1.2%1.6%
1 Year-15.4%-17.4%-4.8%-6.8%3.4%1.1%
3 Year9.1%2.6%49.2%39.5%45.2%35.8%
5 Year40.1%27.9%55.2%36.1%62.6%44.8%

Price Volatility Vs. Market

How volatile is Snap-on's share price compared to the market and industry in the last 5 years?


Simply Wall St News

3 weeks ago | Simply Wall St

Does Snap-on Incorporated's (NYSE:SNA) 15% Earnings Growth Reflect The Long-Term Trend? Does Snap-on Incorporated's (NYSE:SNA) Recent Track Record Look Strong?

Valuation

Is Snap-on undervalued based on future cash flows and its price relative to the stock market?

4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Snap-on's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Snap-on's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Snap-on is good value based on earnings compared to the US Machinery industry average.

Snap-on is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Snap-on is poor value based on expected growth next year.


Price Based on Value of Assets

Snap-on is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is Snap-on expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Snap-on's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Snap-on's earnings are expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Snap-on's revenue growth is positive but not above the United States of America market average.

Snap-on's earnings growth is positive but not above the United States of America market average.

Snap-on's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Snap-on will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Snap-on performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Snap-on's year on year earnings growth rate has been positive over the past 5 years.

Snap-on's 1-year earnings growth exceeds its 5-year average (15.3% vs 11.1%)

Snap-on's earnings growth has not exceeded the US Machinery industry average in the past year (15.3% vs 18.7%).


Return on Equity

Snap-on has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Snap-on used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Snap-on's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Snap-on's financial position?


Financial Position Analysis

Snap-on is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Snap-on's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Snap-on's level of debt (33.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (39.9% vs 33.7% today).

Debt is well covered by operating cash flow (62%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 19.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

What is Snap-on's current dividend yield, its reliability and sustainability?

2.56%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Snap-on's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Snap-on's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Snap-on's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Nicholas Pinchuk (72yo)

11.8yrs

Tenure

US$8,896,358

Compensation

Mr. Nicholas T. Pinchuk, also known as Nick, has been the Chief Executive Officer at Snap-on Inc. since December 2007 and its President since April 2007. Mr. Pinchuk served as the President of Worldwide Co ...


CEO Compensation Analysis

Nicholas's remuneration is higher than average for companies of similar size in United States of America.

Nicholas's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

65yo

Average Age

The tenure for the Snap-on management team is about average.


Board Age and Tenure

9.6yrs

Average Tenure

65.5yo

Average Age

The tenure for the Snap-on board of directors is about average.


Insider Trading

Snap-on individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$421,12622 Jul 19
Anup Banerjee
EntityIndividual
Role
Head of Human Resources
Senior VP of Human Resources & Chief Development Officer
Shares2,800
Max PriceUS$150.40
SellUS$5,312,65726 Feb 19
Thomas Kassouf
EntityIndividual
Shares32,957
Max PriceUS$162.13
SellUS$637,96826 Feb 19
Thomas Ward
EntityIndividual
Role
Senior Key Executive
Senior VP and President of Repair Systems & Information Group
Shares3,936
Max PriceUS$162.35
SellUS$60,83315 Feb 19
W. Lehman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares387
Max PriceUS$157.19

Ownership Breakdown


Management Team

  • Nicholas Pinchuk (72yo)

    Chairman

    • Tenure: 11.8yrs
    • Compensation: US$8.90m
  • Tom Ward (66yo)

    Senior VP and President of Repair Systems & Information Group

    • Tenure: 14.7yrs
    • Compensation: US$2.91m
  • Tim Chambers

    Senior VP & President of Snap-on Tools Group

    • Tenure: 0.6yrs
  • Aldo Pagliari (64yo)

    Senior VP of Finance & CFO

    • Tenure: 9.5yrs
    • Compensation: US$2.75m
  • Anup Banerjee (68yo)

    Senior VP of Human Resources & Chief Development Officer

    • Tenure: 4.1yrs
    • Compensation: US$2.35m
  • Samuel Bottum

    Chief Marketing Officer & VP

    • Tenure: 3.5yrs
  • Richard Strege (61yo)

    Principal Accounting Officer

    • Tenure: 2.3yrs
  • June Lemerand (56yo)

    VP & Chief Information Officer

    • Tenure: 2.3yrs
  • Sara Verbsky

    Vice President of Investor Relations

    • Tenure: 0.8yrs
  • Richard Miller

    VP, General Counsel & Secretary

    • Tenure: 0yrs

Board Members

  • James Holden (67yo)

    Lead Director

    • Tenure: 10.6yrs
    • Compensation: US$300.56k
  • Don Stebbins (61yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$231.31k
  • Ruth Ann Gillis (64yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$238.81k
  • Henry Knueppel (70yo)

    Director

    • Tenure: 8yrs
    • Compensation: US$249.90k
  • Nathan Jones (63yo)

    Director

    • Tenure: 11.2yrs
    • Compensation: US$286.46k
  • Nicholas Pinchuk (72yo)

    Chairman

    • Tenure: 11.8yrs
    • Compensation: US$8.90m
  • Gregg Sherrill (66yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: US$256.50k
  • Karen Daniel (61yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: US$291.11k
  • W. Lehman (67yo)

    Director

    • Tenure: 16.3yrs
    • Compensation: US$283.61k
  • Dave Adams (65yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$231.31k

Company Information

Snap-on Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Snap-on Incorporated
  • Ticker: SNA
  • Exchange: NYSE
  • Founded: 1920
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$8.597b
  • Shares outstanding: 55.21m
  • Website: https://www.snapon.com

Number of Employees


Location

  • Snap-on Incorporated
  • 2801 80th Street
  • Kenosha
  • Wisconsin
  • 53143
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNANYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1978
SPUDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1978
0L7GLSE (London Stock Exchange)YesCommon StockGBUSDFeb 1978

Biography

Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. It operates through Commercial and Industrial Gro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:41
End of Day Share Price2019/09/20 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.