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

1.3%

SNA

3.2%

US Machinery

1.0%

US Market


1 Year Return

-7.5%

SNA

2.3%

US Machinery

6.7%

US Market

Return vs Industry: SNA underperformed the US Machinery industry which returned 2.3% over the past year.

Return vs Market: SNA underperformed the US Market which returned 6.7% over the past year.


Share holder returns

SNAIndustryMarket
7 Day1.3%3.2%1.0%
30 Day-3.7%-3.5%-1.8%
90 Day-2.2%-4.6%-1.8%
1 Year-5.3%-7.5%4.5%2.3%9.1%6.7%
3 Year11.6%4.9%46.3%36.8%46.1%36.6%
5 Year37.9%25.8%60.6%41.3%66.9%48.6%

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 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

Undervalued: SNA ($156.46) is trading below our estimate of fair value ($163.18)

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


Price Based on Earnings

PE vs Industry: SNA is good value based on its PE Ratio (12.5x) compared to the Machinery industry average (19.7x).

PE vs Market: SNA is good value based on its PE Ratio (12.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: SNA is poor value based on its PEG Ratio (4.2x)


Price Based on Value of Assets

PB vs Industry: SNA is overvalued based on its PB Ratio (2.6x) compared to the US Machinery industry average (2.2x).


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

Earnings vs Savings Rate: SNA's forecast earnings growth (3% per year) is above the savings rate (2.7%).

Earnings vs Market: SNA's earnings (3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: SNA's revenue (2.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SNA's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

11.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SNA's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: SNA's earnings growth over the past year (15.3%) exceeds its 5-year average (11.1% per year).

Earnings vs Industry: SNA earnings growth over the past year (15.3%) underperformed the Machinery industry 18.7%.


Return on Equity

High ROE: SNA's Return on Equity (21.6%) is considered high.


Return on Assets

ROA vs Industry: SNA has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: SNA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Snap-on's financial position?


Financial Position Analysis

Short Term Liabilities: SNA's short term assets ($2.3B) exceeds its short term liabilities ($930.8M)

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


Debt to Equity History and Analysis

Debt Level: SNA's debt to equity ratio (33.7%) is considered satisfactory

Reducing Debt: SNA's debt to equity ratio has reduced from 39.9% to 33.7% over the past 5 years.

Debt Coverage: SNA's debt is well covered by operating cash flow (62%).

Interest Coverage: SNA's interest payments on its debt are well covered by EBIT (19.8x 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 2.066660x debt).


Next Steps

Dividend

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

2.55%

Expected Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.8%industryaverage1.7%forecastin3Years2.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: SNA's dividend (2.43%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: SNA's dividend (2.43%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (29.4%), SNA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.6yrs

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

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

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


Management Age and Tenure

3.6yrs

Average Tenure

65yo

Average Age

Experienced Management: SNA's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

9.7yrs

Average Tenure

65.5yo

Average Age

Experienced Board: SNA's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

Insider Buying: SNA 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
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
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: 9.5yrs
    • Compensation: US$2.91m
  • Tim Chambers

    Senior VP & President of Snap-on Tools Group

    • Tenure: 0.7yrs
  • Aldo Pagliari (64yo)

    Senior VP of Finance & CFO

    • Tenure: 9.6yrs
    • Compensation: US$2.75m
  • Anup Banerjee (68yo)

    Senior VP of Human Resources & Chief Development Officer

    • Tenure: 4.2yrs
    • Compensation: US$2.35m
  • Samuel Bottum

    Chief Marketing Officer & VP

    • Tenure: 3.6yrs
  • 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: 0.9yrs
  • Richard Miller

    VP, General Counsel & Secretary

    • Tenure: 0yrs

Board Members

  • James Holden (67yo)

    Lead Director

    • Tenure: 10.7yrs
    • Compensation: US$300.56k
  • Don Stebbins (61yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$231.31k
  • Ruth Ann Gillis (64yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$238.81k
  • Henry Knueppel (70yo)

    Director

    • Tenure: 8.1yrs
    • Compensation: US$249.90k
  • Nathan Jones (63yo)

    Director

    • Tenure: 11.3yrs
    • 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: 16.4yrs
    • 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$8.638b
  • 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 Analysis2019/10/14 01:25
End of Day Share Price2019/10/11 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.

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