NYSE:SNA

Stock Analysis Report

Executive Summary

Snap-on Incorp. Manufactures & markets tools, equipment, diagnostics, repair information & systems solutions for professional users worldwide.


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

-8.2%

SNA

-10.2%

US Machinery

-10.6%

US Market


1 Year Return

-7.5%

SNA

-0.7%

US Machinery

5.2%

US Market

Return vs Industry: SNA underperformed the US Machinery industry which returned 2.5% over the past year.

Return vs Market: SNA underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

SNAIndustryMarket
7 Day-8.2%-10.2%-10.6%
30 Day-10.9%-8.1%-8.5%
90 Day-8.4%-8.6%-4.6%
1 Year-5.1%-7.5%1.1%-0.7%7.4%5.2%
3 Year-7.8%-13.8%24.0%16.0%31.7%23.2%
5 Year11.5%1.1%52.1%34.0%56.4%39.3%

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?

23.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SNA ($149.45) is trading below our estimate of fair value ($189.79)

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 (11.9x) compared to the Machinery industry average (20.4x).

PE vs Market: SNA is good value based on its PE Ratio (11.9x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: SNA is poor value based on its PEG Ratio (10.1x)


Price to Book Ratio

PB vs Industry: SNA is overvalued based on its PB Ratio (2.4x) compared to the US Machinery industry average (2.1x).


Next Steps

Future Growth

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

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNA's forecast earnings growth (1.2% per year) is below the savings rate (1.7%).

Earnings vs Market: SNA's earnings (1.2% per year) are forecast to grow slower than the US market (13.2% per year).

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

Revenue vs Market: SNA's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: SNA's revenue is forecast to decline over the next 3 years (-1% 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 (18.6%).


Next Steps

Past Performance

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

10.2%

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%) are higher than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: SNA's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: SNA's earnings growth over the past year (2.1%) is below its 5-year average (10.2% per year).

Earnings vs Industry: SNA earnings growth over the past year (2.1%) underperformed the Machinery industry 2.1%.


Return on Equity

High ROE: SNA's Return on Equity (20.7%) 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 ($2.4B) exceed its short term liabilities ($947.6M).

Long Term Liabilities: SNA's short term assets ($2.4B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: SNA's debt to equity ratio (33.5%) is considered satisfactory.

Reducing Debt: SNA's debt to equity ratio has reduced from 41.2% to 33.5% over the past 5 years.

Debt Coverage: SNA's debt is well covered by operating cash flow (58.7%).

Interest Coverage: SNA's interest payments on its debt are well covered by EBIT (20.3x 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 2.1x debt).


Next Steps

Dividend

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

2.94%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.6%markettop25%4.1%industryaverage2.2%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: SNA's dividend (2.89%) is higher than the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: SNA's dividend (2.89%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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 (31.2%), 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 (36.2% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Nicholas Pinchuk (72yo)

12.2yrs

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. Mr. Pinchuk served as the President of Worldwide Commercial and Industri ...


CEO Compensation Analysis

Compensation vs Market: Nicholas's total compensation ($USD8.90M) is above average for companies of similar size in the US market ($USD6.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Pinchuk
Chairman12.2yrsUS$8.90m0.93% $75.9m
Aldo Pagliari
Senior VP of Finance & CFO9.9yrsUS$2.75m0.090% $7.3m
Anup Banerjee
Senior VP of Human Resources & Chief Development Officer4.5yrsUS$2.35m0.0022% $181.3k
Thomas Ward
Senior VP and President of Repair Systems & Information Group9.8yrsUS$2.91m0.082% $6.7m
Iain Boyd
Vice President of Operations Development0yrsno data0.011% $865.1k
June Lemerand
VP & Chief Information Officer2.7yrsno data0.0015% $124.2k
Sara Verbsky
Vice President of Investor Relations1.3yrsno datano data
Richard Miller
VP, General Counsel & Secretary0yrsno datano data
Samuel Bottum
Chief Marketing Officer & VP3.9yrsno datano data
Timothy Chambers
Senior VP & President of Snap-on Tools Group1yrsno data0.018% $1.5m

4.2yrs

Average Tenure

60yo

Average Age

Experienced Management: SNA's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Pinchuk
Chairman12.2yrsUS$8.90m0.93% $75.9m
James Holden
Lead Director11yrsUS$300.56k0.041% $3.4m
Donald Stebbins
Independent Director5.1yrsUS$231.31k0.012% $971.3k
Ruth Ann Gillis
Independent Director5.6yrsUS$238.81k0.012% $1.0m
Henry Knueppel
Independent Director8.4yrsUS$249.90k0.016% $1.3m
Nathan Jones
Independent Director11.6yrsUS$286.46k0.0071% $579.2k
Gregg Sherrill
Independent Director9.2yrsUS$256.50k0.014% $1.2m
Karen Daniel
Independent Director14.2yrsUS$291.11k0.027% $2.2m
W. Lehman
Independent Director16.8yrsUS$283.61k0.018% $1.5m
David Adams
Independent Director3.7yrsUS$231.31k0.0072% $584.1k

10.0yrs

Average Tenure

65.5yo

Average Age

Experienced Board: SNA's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SNA insiders have only sold shares 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$8.169b
  • Shares outstanding: 54.66m
  • 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
S1NA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Snap-on Incorp. Manufactures & markets tools, equipment, diagnostics, repair information & systems solutions for professional users worldwide. It operates through Commercial - Industrial Group, Snap-on Tools Group, and Repair Systems & Information Group segments. Co. offers hand tools, including wrenches, sockets, ratchet wrenches, pliers, screwdrivers, punches and chisels, saws & cutting tools, pruning tools, torque measuring instruments, other products; power tools, such as cordless, pneumatic, hydraulic, corded tools; tool storage products comprising tool chests, roll cabinets, and other products. It provides handheld, PC-based diagnostic products, service & repair information products, diagnostic software solutions, electronic parts catalogs, business management systems & services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer purchasing facilitation services, warranty management systems & analytics. In addition, the co. offers solutions for the service of vehicles & industrial equipment that include wheel alignment equipment, wheel balancers, tire changers, vehicle lifts, test lane systems, collision repair equipment, vehicle air conditioning service equipment, brake service equipment, fluid exchange equipment, transmission troubleshooting equipment, safety testing equipment, battery chargers, and hoists. Further, it provides training programs & after-sales support; financing programs to facilitate the sales of its products & support its franchise business. The co. serves the aviation & aerospace, agriculture, construction, government, military, mining, natural resources, power generation, technical education industries, as well as vehicle dealerships & repair centers. It distributes its products various channels, such as through mobile vans, distributors, company direct sales, e-commerce. Snap-on Incorporated was founded in 1920 & is headquartered in Kenosha, Wisconsin. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:42
End of Day Share Price2020/02/27 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.