Snap-on (NYSE:SNA) - Share price, News & Analysis

SNA fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	5/6

SNA Stock Overview

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

Rewards

Trading at 43.3% below our estimate of its fair value

Earnings have grown 6.8% per year over the past 5 years

Pays a reliable dividend of 2.71%

Risk Analysis

No risks detected for SNA from our risk checks.

Snap-on Competitors

Illinois Tool Works

NYSE:ITW

US$62.8b

Parker-Hannifin

NYSE:PH

US$33.2b

Crane Holdings

NYSE:CR

US$5.0b

Flowserve

NYSE:FLS

US$3.9b

Price History & Performance

Summary of all time highs, changes and price drops for Snap-on
Historical stock prices
Current Share Price	US$209.96
52 Week High	US$257.98
52 Week Low	US$197.75
Beta	1.08
1 Month Change	-7.18%
3 Month Change	-2.56%
1 Year Change	-16.01%
3 Year Change	32.63%
5 Year Change	30.65%
Change since IPO	854.36%

Recent News & Updates

Apr 18

Is There An Opportunity With Snap-on Incorporated's (NYSE:SNA) 41% Undervaluation?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Snap-on Incorporated...

Shareholder Returns

	SNA	US Machinery	US Market
7D	-3.0%	-4.1%	-2.7%
1Y	-16.0%	-19.3%	-12.9%

Return vs Industry: SNA exceeded the US Machinery industry which returned -19.3% over the past year.

Return vs Market: SNA underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is SNA's price volatile compared to industry and market?
SNA volatility
SNA Average Weekly Movement	4.2%
Machinery Industry Average Movement	5.7%
Market Average Movement	7.9%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.0%

Stable Share Price: SNA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SNA's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1920	12,800	Nicholas Pinchuk	https://www.snapon.com

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, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments. The company offers hand tools, including wrenches, sockets, ratchet wrenches, pliers, screwdrivers, punches and chisels, saws and cutting tools, pruning tools, torque measuring instruments, and other products; power tools, such as cordless, pneumatic, hydraulic, and corded tools; and tool storage products comprising tool chests, roll cabinets, and other products.

Snap-on Fundamentals Summary

How do Snap-on's earnings and revenue compare to its market cap?
SNA fundamental statistics
Market Cap	US$11.21b
Earnings (TTM)	US$845.30m
Revenue (TTM)	US$4.67b

13.3x

P/E Ratio

2.4x

P/S Ratio

Is SNA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNA income statement (TTM)
Revenue	US$4.67b
Cost of Revenue	US$2.19b
Gross Profit	US$2.41b
Other Expenses	US$1.56b
Earnings	US$845.30m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	15.84
Gross Margin	51.53%
Net Profit Margin	18.09%
Debt/Equity Ratio	27.8%

How did SNA perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

34%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

43.3%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SNA ($209.96) is trading below our estimate of fair value ($370.05)

Significantly Below Fair Value: SNA is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: SNA is good value based on its PE Ratio (13.3x) compared to the US Machinery industry average (21.3x).

PE vs Market: SNA is good value based on its PE Ratio (13.3x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: SNA is poor value based on its PEG Ratio (350.2x)

Price to Book Ratio

PB vs Industry: SNA is overvalued based on its PB Ratio (2.6x) compared to the US Machinery industry average (2.1x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

0.04%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNA's forecast earnings growth (0.04% per year) is below the savings rate (1.9%).

Earnings vs Market: SNA's earnings (0.04% per year) are forecast to grow slower than the US market (12.5% per year).

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

Revenue vs Market: SNA's revenue (2.7% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: SNA's revenue (2.7% 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 (18.7%).

Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SNA has high quality earnings.

Growing Profit Margin: SNA's current net profit margins (18.1%) are higher than last year (16.6%).

Past Earnings Growth Analysis

Earnings Trend: SNA's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: SNA's earnings growth over the past year (24%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: SNA earnings growth over the past year (24%) underperformed the Machinery industry 24%.

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 Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SNA's short term assets ($3.2B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: SNA's short term assets ($3.2B) exceed its long term liabilities ($1.6B).

Debt to Equity History and Analysis

Debt Level: SNA's net debt to equity ratio (7.9%) is considered satisfactory.

Reducing Debt: SNA's debt to equity ratio has reduced from 37% to 27.8% over the past 5 years.

Debt Coverage: SNA's debt is well covered by operating cash flow (69.9%).

Interest Coverage: SNA's interest payments on its debt are well covered by EBIT (24.3x coverage).

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SNA's dividend (2.71%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: SNA's dividend (2.71%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.7%), SNA's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (39.4%), SNA's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

6.5yrs

Average management tenure

CEO

Nicholas Pinchuk (74 yo)

15.08yrs

Tenure

US$9,872,946

Compensation

Mr. Nicholas T. Pinchuk has been the Chief Executive Officer at Snap-on Incorporated since December 2007 and serves as its President since April 2007. Mr. Pinchuk served as the President of Worldwide Comme...

CEO Compensation Analysis

Compensation vs Market: Nicholas's total compensation ($USD9.87M) is about average for companies of similar size in the US market ($USD13.34M).

Compensation vs Earnings: Nicholas's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: SNA's management team is seasoned and experienced (6.5 years average tenure).

Board Members

Experienced Board: SNA's board of directors are seasoned and experienced ( 12.6 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/04/02
Annual Earnings	2022/01/01