SNAP-ON INC (SNA) Stock Fundamental Analysis
NYSE:SNA - New York Stock Exchange, Inc. - US8330341012 - Common Stock - Currency: USD
Taking everything into account, SNA scores 7 out of 10 in our fundamental rating. SNA was compared to 128 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making SNA a very profitable company, without any liquidiy or solvency issues. 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.
In the past 5 years SNA has always been profitable.
In the past 5 years SNA always reported a positive cash flow from operatings.
1.2 Ratios
SNA's Return On Assets of 12.65% is amongst the best of the industry. SNA outperforms 88.28% of its industry peers.
SNA has a Return On Equity of 18.49%. This is in the better half of the industry: SNA outperforms 78.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.66%, SNA belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SNA is above the industry average of 10.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 18.49% | ||
| ROIC | 14.66% |
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
Looking at the Profit Margin, with a value of 20.14%, SNA belongs to the top of the industry, outperforming 96.09% of the companies in the same industry.
SNA's Profit Margin has improved in the last couple of years.
SNA's Operating Margin of 26.26% is amongst the best of the industry. SNA outperforms 97.66% of its industry peers.
SNA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 52.05%, SNA belongs to the top of the industry, outperforming 92.97% of the companies in the same industry.
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 | 26.26% | ||
| PM (TTM) | 20.14% | ||
| GM | 52.05% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SNA is creating some value.
The number of shares outstanding for SNA has been reduced compared to 1 year ago.
Compared to 5 years ago, SNA has less shares outstanding
SNA has a better debt/assets ratio than last year.
2.2 Solvency
SNA has an Altman-Z score of 6.94. This indicates that SNA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.94, SNA belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The Debt to FCF ratio of SNA is 1.11, which is an excellent value as it means it would take SNA, only 1.11 years of fcf income to pay off all of its debts.
SNA's Debt to FCF ratio of 1.11 is amongst the best of the industry. SNA outperforms 82.03% 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 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 6.94 |
ROIC/WACC1.51
WACC9.7%
2.3 Liquidity
A Current Ratio of 4.14 indicates that SNA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.14, SNA belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
SNA has a Quick Ratio of 3.18. This indicates that SNA is financially healthy and has no problem in meeting its short term obligations.
SNA has a better Quick ratio (3.18) than 89.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.14 | ||
| Quick Ratio | 3.18 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.06% over the past year.
Measured over the past years, SNA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.53% on average per year.
SNA shows a decrease in Revenue. In the last year, the revenue decreased by -0.88%.
Measured over the past years, SNA shows a small growth in Revenue. The Revenue has been growing by 4.66% on average per year.
EPS 1Y (TTM)1.06%
EPS 3Y9.01%
EPS 5Y9.53%
EPS Q2Q%-5.05%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%-3.48%
3.2 Future
Based on estimates for the next years, SNA will show a small growth in Earnings Per Share. The EPS will grow by 4.58% on average per year.
The Revenue is expected to grow by 3.24% on average over the next years.
EPS Next Y-2.26%
EPS Next 2Y2.56%
EPS Next 3Y5.02%
EPS Next 5Y4.58%
Revenue Next Year-0.9%
Revenue Next 2Y1.77%
Revenue Next 3Y3.39%
Revenue Next 5Y3.24%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
SNA is valuated correctly with a Price/Earnings ratio of 16.84.
SNA's Price/Earnings ratio is a bit cheaper when compared to the industry. SNA is cheaper than 75.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. SNA is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.81, the valuation of SNA can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SNA indicates a somewhat cheap valuation: SNA is cheaper than 69.53% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. SNA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNA is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
78.91% of the companies in the same industry are more expensive than SNA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.53 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
The excellent profitability rating of SNA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.77
EPS Next 2Y2.56%
EPS Next 3Y5.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, SNA has a reasonable but not impressive dividend return.
SNA's Dividend Yield is rather good when compared to the industry average which is at 1.83. SNA pays more dividend than 89.06% of the companies in the same industry.
SNA's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
The dividend of SNA is nicely growing with an annual growth rate of 21.21%!
SNA has paid a dividend for at least 10 years, which is a reliable track record.
SNA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)21.21%
Div Incr Years15
Div Non Decr Years21
5.3 Sustainability
41.18% of the earnings are spent on dividend by SNA. This is a bit on the high side, but may be sustainable.
The dividend of SNA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.18%
EPS Next 2Y2.56%
EPS Next 3Y5.02%
321.63
+1.53 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.37%
Inst Owner Change3.06%
Ins Owners2.26%
Ins Owner Change5.2%
Market Cap16.82B
Analysts70.67
Price Target338.7 (5.31%)
Short Float %4.93%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend7.74
Dividend Growth(5Y)21.21%
DP41.18%
Div Incr Years15
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4%
Min EPS beat(2)-7.21%
Max EPS beat(2)-0.79%
EPS beat(4)2
Avg EPS beat(4)-1.23%
Min EPS beat(4)-7.21%
Max EPS beat(4)1.62%
EPS beat(8)6
Avg EPS beat(8)0.46%
EPS beat(12)10
Avg EPS beat(12)2.57%
EPS beat(16)14
Avg EPS beat(16)4.32%
Revenue beat(2)0
Avg Revenue beat(2)-3.16%
Min Revenue beat(2)-5.46%
Max Revenue beat(2)-0.85%
Revenue beat(4)0
Avg Revenue beat(4)-2.66%
Min Revenue beat(4)-5.46%
Max Revenue beat(4)-0.85%
Revenue beat(8)1
Avg Revenue beat(8)-1.82%
Revenue beat(12)5
Avg Revenue beat(12)1.99%
Revenue beat(16)9
Avg Revenue beat(16)4.59%
PT rev (1m)0%
PT rev (3m)-4.38%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-8.66%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-5.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.89%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 15.81 | ||
| P/S | 3.32 | ||
| P/FCF | 15.53 | ||
| P/OCF | 14.41 | ||
| P/B | 3.05 | ||
| P/tB | 4.03 | ||
| EV/EBITDA | 11.61 |
EPS(TTM)19.1
EY5.94%
EPS(NY)20.34
Fwd EY6.32%
FCF(TTM)20.71
FCFY6.44%
OCF(TTM)22.32
OCFY6.94%
SpS96.95
BVpS105.58
TBVpS79.78
PEG (NY)N/A
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 18.49% | ||
| ROCE | 18.83% | ||
| ROIC | 14.66% | ||
| ROICexc | 18.4% | ||
| ROICexgc | 24.19% | ||
| OM | 26.26% | ||
| PM (TTM) | 20.14% | ||
| GM | 52.05% | ||
| FCFM | 21.36% |
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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 86.77% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 30.25 | ||
| Cash Conversion | 81.71% | ||
| Profit Quality | 106.05% | ||
| Current Ratio | 4.14 | ||
| Quick Ratio | 3.18 | ||
| Altman-Z | 6.94 |
F-Score7
WACC9.7%
ROIC/WACC1.51
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)1.06%
EPS 3Y9.01%
EPS 5Y9.53%
EPS Q2Q%-5.05%
EPS Next Y-2.26%
EPS Next 2Y2.56%
EPS Next 3Y5.02%
EPS Next 5Y4.58%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%-3.48%
Revenue Next Year-0.9%
Revenue Next 2Y1.77%
Revenue Next 3Y3.39%
Revenue Next 5Y3.24%
EBIT growth 1Y-0.28%
EBIT growth 3Y6.79%
EBIT growth 5Y7.48%
EBIT Next Year7%
EBIT Next 3Y7.48%
EBIT Next 5Y-0.89%
FCF growth 1Y55.58%
FCF growth 3Y8.15%
FCF growth 5Y14.54%
OCF growth 1Y49.1%
OCF growth 3Y8%
OCF growth 5Y12.53%