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.

Rewards

Trading at 9.7% below its fair value

Earnings have grown 10.7% per year over the past 5 years

Pays a high and reliable dividend of 2.62%

Risk Analysis

No risks detected for SNA from our risk checks.


Snowflake Analysis

Flawless balance sheet established dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

SNA

-0.6%

US Machinery

-0.3%

US Market


1 Year Return

9.3%

SNA

21.2%

US Machinery

18.6%

US Market

Return vs Industry: SNA underperformed the US Machinery industry which returned 21.2% over the past year.

Return vs Market: SNA underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

SNAIndustryMarket
7 Day1.6%-0.6%-0.3%
30 Day-1.1%-0.4%2.2%
90 Day9.2%11.9%5.6%
1 Year12.0%9.3%23.5%21.2%21.1%18.6%
3 Year-0.2%-6.4%39.6%30.7%45.6%36.2%
5 Year36.7%24.4%70.1%49.9%71.1%52.2%

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?

9.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SNA ($164.97) is trading below our estimate of fair value ($182.75)

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 (13.1x) compared to the Machinery industry average (22.1x).

PE vs Market: SNA is good value based on its PE Ratio (13.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SNA is poor value based on its PEG Ratio (47.9x)


Price to Book Ratio

PB vs Industry: SNA is overvalued based on its PB Ratio (2.7x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

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

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNA's forecast earnings growth (0.3% per year) is below the savings rate (1.7%).

Earnings vs Market: SNA's earnings (0.3% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: SNA's revenue (1.7% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: SNA's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SNA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNA has high quality earnings.

Growing Profit Margin: SNA's current net profit margins (17.2%) are higher than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: SNA's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: SNA's earnings growth over the past year (10.1%) is below its 5-year average (10.7% per year).

Earnings vs Industry: SNA earnings growth over the past year (10.1%) underperformed the Machinery industry 13.5%.


Return on Equity

High ROE: SNA's Return on Equity (21.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Snap-on's financial position?


Financial Position Analysis

Short Term Liabilities: SNA's short term assets ($2.3B) exceed its short term liabilities ($990.1M).

Long Term Liabilities: SNA's short term assets ($2.3B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: SNA's debt to equity ratio (35.5%) is considered satisfactory.

Reducing Debt: SNA's debt to equity ratio has reduced from 40.1% to 35.5% over the past 5 years.

Debt Coverage: SNA's debt is well covered by operating cash flow (58.8%).

Interest Coverage: SNA's interest payments on its debt are well covered by EBIT (20.1x coverage).


Balance Sheet

Inventory Level: SNA has a high level of physical assets or inventory.

Debt Coverage by Assets: SNA's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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

2.62%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: SNA's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: SNA's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 (30.2%), 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 (38% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Nicholas Pinchuk (72yo)

12yrs

Tenure

US$8,896,358

Compensation

Mr. Nicholas T. Pinchuk has been the Chief Executive Officer at Snap-on Inc. since December 2007 and its President since April 2007 and Snap-on Business Solutions, Inc. Mr. Pinchuk served as the President  ...


CEO Compensation Analysis

Compensation vs Market: Nicholas's total compensation ($USD8.90M) is above average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

3.8yrs

Average Tenure

65yo

Average Age

Experienced Management: SNA's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

9.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: SNA's board of directors are considered experienced (9.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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
Unit President
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
Independent Director
Shares387
Max PriceUS$157.19

Ownership Breakdown

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


Management Team

  • Nicholas Pinchuk (72yo)

    Chairman

    • Tenure: 12yrs
    • Compensation: US$8.90m
  • Tom Ward (66yo)

    Senior VP and President of Repair Systems & Information Group

    • Tenure: 9.7yrs
    • Compensation: US$2.91m
  • Tim Chambers

    Senior VP & President of Snap-on Tools Group

    • Tenure: 0.8yrs
  • Aldo Pagliari (64yo)

    Senior VP of Finance & CFO

    • Tenure: 9.8yrs
    • Compensation: US$2.75m
  • Anup Banerjee (68yo)

    Senior VP of Human Resources & Chief Development Officer

    • Tenure: 4.3yrs
    • Compensation: US$2.35m
  • Samuel Bottum

    Chief Marketing Officer & VP

    • Tenure: 3.8yrs
  • Richard Strege (61yo)

    Principal Accounting Officer

    • Tenure: 2.5yrs
  • June Lemerand (56yo)

    VP & Chief Information Officer

    • Tenure: 2.5yrs
  • Sara Verbsky

    Vice President of Investor Relations

    • Tenure: 1.1yrs
  • Richard Miller

    VP, General Counsel & Secretary

    • Tenure: 0yrs

Board Members

  • James Holden (67yo)

    Lead Director

    • Tenure: 10.8yrs
    • Compensation: US$300.56k
  • Don Stebbins (61yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$231.31k
  • Ruth Ann Gillis (64yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$238.81k
  • Henry Knueppel (70yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$249.90k
  • Nathan Jones (63yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$286.46k
  • Nicholas Pinchuk (72yo)

    Chairman

    • Tenure: 12yrs
    • Compensation: US$8.90m
  • Gregg Sherrill (66yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$256.50k
  • Karen Daniel (61yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$291.11k
  • W. Lehman (67yo)

    Independent Director

    • Tenure: 16.6yrs
    • Compensation: US$283.61k
  • Dave Adams (65yo)

    Independent Director

    • Tenure: 3.5yrs
    • 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$8.587b
  • Shares outstanding: 54.85m
  • 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 Analysis2019/12/06 23:41
End of Day Share Price2019/12/06 00:00
Earnings2019/09/28
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.