SNAP-ON INC (SNA) Stock Fundamental Analysis
NYSE:SNA - US8330341012 - Common Stock
333.03 USD
+11.65 (+3.62%)
333.03 USD
0 (0%)
SNA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 127 industry peers in the Machinery industry. SNA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SNA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SNA had positive earnings in the past year.
In the past year SNA had a positive cash flow from operations.
SNA had positive earnings in each of the past 5 years.
Each year in the past 5 years SNA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SNA (12.19%) is better than 88.98% of its industry peers.
With a decent Return On Equity value of 17.50%, SNA is doing good in the industry, outperforming 78.74% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.91%, SNA belongs to the best of the industry, outperforming 81.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SNA is significantly above the industry average of 10.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.19% | ||
| ROE | 17.5% | ||
| ROIC | 13.91% |
ROA(3y)13.23%
ROA(5y)12.28%
ROE(3y)19.88%
ROE(5y)19.13%
ROIC(3y)15.48%
ROIC(5y)14.92%
1.3 Margins
With an excellent Profit Margin value of 19.72%, SNA belongs to the best of the industry, outperforming 96.06% of the companies in the same industry.
In the last couple of years the Profit Margin of SNA has grown nicely.
Looking at the Operating Margin, with a value of 25.57%, SNA belongs to the top of the industry, outperforming 96.85% of the companies in the same industry.
SNA's Operating Margin has improved in the last couple of years.
The Gross Margin of SNA (51.96%) is better than 92.91% of its industry peers.
In the last couple of years the Gross Margin of SNA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.57% | ||
| PM (TTM) | 19.72% | ||
| GM | 51.96% |
OM growth 3Y3.13%
OM growth 5Y2.7%
PM growth 3Y4.65%
PM growth 5Y3.69%
GM growth 3Y-0.94%
GM growth 5Y-0.63%
2. Health
2.1 Basic Checks
SNA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SNA has less shares outstanding than it did 1 year ago.
SNA has less shares outstanding than it did 5 years ago.
SNA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.15 indicates that SNA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.15, SNA belongs to the top of the industry, outperforming 88.98% of the companies in the same industry.
SNA has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
SNA's Debt to FCF ratio of 1.18 is amongst the best of the industry. SNA outperforms 83.46% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that SNA is not too dependend on debt financing.
SNA has a better Debt to Equity ratio (0.21) than 70.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 7.15 |
ROIC/WACC1.43
WACC9.73%
2.3 Liquidity
SNA has a Current Ratio of 4.48. This indicates that SNA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SNA (4.48) is better than 88.98% of its industry peers.
SNA has a Quick Ratio of 3.42. This indicates that SNA is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.42, SNA belongs to the best of the industry, outperforming 91.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.48 | ||
| Quick Ratio | 3.42 |
3. Growth
3.1 Past
SNA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.73%.
The Earnings Per Share has been growing by 9.53% on average over the past years. This is quite good.
The Revenue has decreased by -0.76% in the past year.
The Revenue has been growing slightly by 4.66% on average over the past years.
EPS 1Y (TTM)-1.73%
EPS 3Y9.01%
EPS 5Y9.53%
EPS Q2Q%-6.9%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%0%
3.2 Future
The Earnings Per Share is expected to grow by 4.29% on average over the next years.
SNA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.88% yearly.
EPS Next Y-2.35%
EPS Next 2Y2.65%
EPS Next 3Y4.42%
EPS Next 5Y4.29%
Revenue Next Year-0.48%
Revenue Next 2Y1.45%
Revenue Next 3Y2.96%
Revenue Next 5Y2.88%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.76, which indicates a rather expensive current valuation of SNA.
Compared to the rest of the industry, the Price/Earnings ratio of SNA indicates a somewhat cheap valuation: SNA is cheaper than 75.59% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, SNA is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.34 indicates a correct valuation of SNA.
SNA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SNA is cheaper than 73.23% of the companies in the same industry.
SNA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 16.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNA is valued a bit cheaper than 64.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SNA is valued a bit cheaper than 77.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.99 | ||
| EV/EBITDA | 12.28 |
4.3 Compensation for Growth
The excellent profitability rating of SNA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.86
EPS Next 2Y2.65%
EPS Next 3Y4.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, SNA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.87, SNA pays a better dividend. On top of this SNA pays more dividend than 88.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SNA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
On average, the dividend of SNA grows each year by 21.21%, which is quite nice.
SNA has been paying a dividend for at least 10 years, so it has a reliable track record.
SNA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)21.21%
Div Incr Years15
Div Non Decr Years21
5.3 Sustainability
43.42% of the earnings are spent on dividend by SNA. This is a bit on the high side, but may be sustainable.
SNA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.42%
EPS Next 2Y2.65%
EPS Next 3Y4.42%
333.03
+11.65 (+3.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.97%
Inst Owner Change0.84%
Ins Owners2.26%
Ins Owner Change2.9%
Market Cap17.37B
Analysts70.67
Price Target345.38 (3.71%)
Short Float %4.91%
Short Ratio7.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend7.74
Dividend Growth(5Y)21.21%
DP43.42%
Div Incr Years15
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.16%
Min EPS beat(2)-7.21%
Max EPS beat(2)0.89%
EPS beat(4)2
Avg EPS beat(4)-1.41%
Min EPS beat(4)-7.21%
Max EPS beat(4)1.46%
EPS beat(8)6
Avg EPS beat(8)-0.16%
EPS beat(12)10
Avg EPS beat(12)2.06%
EPS beat(16)14
Avg EPS beat(16)3.4%
Revenue beat(2)1
Avg Revenue beat(2)-2.24%
Min Revenue beat(2)-5.46%
Max Revenue beat(2)0.98%
Revenue beat(4)1
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-5.46%
Max Revenue beat(4)0.98%
Revenue beat(8)2
Avg Revenue beat(8)-1.58%
Revenue beat(12)5
Avg Revenue beat(12)1.2%
Revenue beat(16)9
Avg Revenue beat(16)3.49%
PT rev (1m)1.63%
PT rev (3m)1.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.61%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 16.34 | ||
| P/S | 3.43 | ||
| P/FCF | 16.99 | ||
| P/OCF | 15.74 | ||
| P/B | 3.04 | ||
| P/tB | 4 | ||
| EV/EBITDA | 12.28 |
EPS(TTM)18.75
EY5.63%
EPS(NY)20.38
Fwd EY6.12%
FCF(TTM)19.6
FCFY5.89%
OCF(TTM)21.15
OCFY6.35%
SpS97.22
BVpS109.58
TBVpS83.16
PEG (NY)N/A
PEG (5Y)1.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.19% | ||
| ROE | 17.5% | ||
| ROCE | 17.86% | ||
| ROIC | 13.91% | ||
| ROICexc | 17.4% | ||
| ROICexgc | 22.82% | ||
| OM | 25.57% | ||
| PM (TTM) | 19.72% | ||
| GM | 51.96% | ||
| FCFM | 20.16% |
ROA(3y)13.23%
ROA(5y)12.28%
ROE(3y)19.88%
ROE(5y)19.13%
ROIC(3y)15.48%
ROIC(5y)14.92%
ROICexc(3y)18.4%
ROICexc(5y)17.68%
ROICexgc(3y)24.34%
ROICexgc(5y)23.83%
ROCE(3y)19.9%
ROCE(5y)19.19%
ROICexcg growth 3Y1.01%
ROICexcg growth 5Y4.01%
ROICexc growth 3Y3.09%
ROICexc growth 5Y4.16%
OM growth 3Y3.13%
OM growth 5Y2.7%
PM growth 3Y4.65%
PM growth 5Y3.69%
GM growth 3Y-0.94%
GM growth 5Y-0.63%
F-Score7
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 0.85 | ||
| Cap/Depr | 83.35% | ||
| Cap/Sales | 1.6% | ||
| Interest Coverage | 29.34 | ||
| Cash Conversion | 79.15% | ||
| Profit Quality | 102.23% | ||
| Current Ratio | 4.48 | ||
| Quick Ratio | 3.42 | ||
| Altman-Z | 7.15 |
F-Score7
WACC9.73%
ROIC/WACC1.43
Cap/Depr(3y)88.3%
Cap/Depr(5y)79.93%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.68%
Profit Quality(3y)92.74%
Profit Quality(5y)107.58%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.73%
EPS 3Y9.01%
EPS 5Y9.53%
EPS Q2Q%-6.9%
EPS Next Y-2.35%
EPS Next 2Y2.65%
EPS Next 3Y4.42%
EPS Next 5Y4.29%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%0%
Revenue Next Year-0.48%
Revenue Next 2Y1.45%
Revenue Next 3Y2.96%
Revenue Next 5Y2.88%
EBIT growth 1Y-4.13%
EBIT growth 3Y6.79%
EBIT growth 5Y7.48%
EBIT Next Year-0.22%
EBIT Next 3Y3.67%
EBIT Next 5Y-1.6%
FCF growth 1Y24.53%
FCF growth 3Y8.15%
FCF growth 5Y14.54%
OCF growth 1Y20.93%
OCF growth 3Y8%
OCF growth 5Y12.53%