NYSE:SNA

Stock Analysis Report

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Market Cap

US$11.8b

Last Updated

2021/07/31 22:31 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Outstanding track record with excellent balance sheet 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

Stable Share Price: SNA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SNA's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-2.9%

SNA

0.9%

US Machinery

-0.5%

US Market


1 Year Return

49.4%

SNA

49.8%

US Machinery

35.9%

US Market

Return vs Industry: SNA matched the US Machinery industry which returned 49.8% over the past year.

Return vs Market: SNA exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

SNAIndustryMarket
7 Day-2.9%0.9%-0.5%
30 Day-2.4%-0.04%0.09%
90 Day-8.3%-1.2%3.2%
1 Year53.3%49.4%53.0%49.8%38.0%35.9%
3 Year39.6%29.4%61.3%51.8%62.8%52.6%
5 Year56.1%39.4%137.0%112.2%121.2%96.9%

Long-Term 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

Valuation

Is Snap-on undervalued compared to its fair value and its price relative to the market?

18.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SNA ($217.98) is trading below our estimate of fair value ($266.71)

Significantly Below Fair Value: SNA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SNA is good value based on its PE Ratio (14.9x) compared to the US Machinery industry average (31.4x).

PE vs Market: SNA is good value based on its PE Ratio (14.9x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: SNA is poor value based on its PEG Ratio (6.5x)


Price to Book Ratio

PB vs Industry: SNA is overvalued based on its PB Ratio (2.9x) compared to the US Machinery industry average (2.8x).


Future Growth

How is Snap-on forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNA's forecast earnings growth (2.3% per year) is above the savings rate (2%).

Earnings vs Market: SNA's earnings (2.3% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: SNA's earnings are forecast to grow, but not significantly.

Revenue vs Market: SNA's revenue (2.6% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: SNA's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SNA's Return on Equity is forecast to be low in 3 years time (16.1%).


Past Performance

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

5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNA has high quality earnings.

Growing Profit Margin: SNA's current net profit margins (17.6%) are higher than last year (15.2%).


Past Earnings Growth Analysis

Earnings Trend: SNA's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: SNA's earnings growth over the past year (37.3%) exceeds its 5-year average (5.4% per year).

Earnings vs Industry: SNA earnings growth over the past year (37.3%) exceeded the Machinery industry 6.3%.


Return on Equity

High ROE: SNA's Return on Equity (20.1%) is considered high.


Financial Health

How is Snap-on's financial position?


Financial Position Analysis

Short Term Liabilities: SNA's short term assets ($3.1B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: SNA's short term assets ($3.1B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: SNA's debt to equity ratio (36%) is considered satisfactory.

Reducing Debt: SNA's debt to equity ratio has increased from 34.2% to 36% over the past 5 years.

Debt Coverage: SNA's debt is well covered by operating cash flow (75.8%).

Interest Coverage: SNA's interest payments on its debt are well covered by EBIT (20x coverage).


Balance Sheet


Dividend

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

2.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SNA's dividend (2.26%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: SNA's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (3.54%).


Stability and Growth of Payments

Stable Dividend: SNA's dividends per share have been stable in the past 10 years.

Growing Dividend: SNA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.7%), SNA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SNA's dividends in 3 years are forecast to be well covered by earnings (36.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Nicholas Pinchuk (74 yo)

13.58yrs

Tenure

US$7,933,529

Compensation

Mr. Nicholas T. Pinchuk 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 Commercial and Industri...


CEO Compensation Analysis

Compensation vs Market: Nicholas's total compensation ($USD7.93M) is about average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Nicholas's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SNA's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: SNA's board of directors are seasoned and experienced ( 11.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$11.764b
  • Shares outstanding: 53.97m
  • Website: https://www.snapon.com

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 22:31
End of Day Share Price2021/07/30 00:00
Earnings2021/07/03
Annual Earnings2021/01/02


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.