SNAP-ON INC (SNA)
US8330341012 - Common Stock
We assign a fundamental rating of 7 out of 10 to SNA. SNA was compared to 132 industry peers in the Machinery industry. SNA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SNA has a correct valuation and a medium growth rate. Finally SNA also has an excellent dividend rating. These ratings would make SNA suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year SNA was profitable.
SNA had a positive operating cash flow in the past year.
Each year in the past 5 years SNA has been profitable.
SNA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SNA (13.38%) is better than 89.23% of its industry peers.
With an excellent Return On Equity value of 19.96%, SNA belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.38%, SNA belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SNA is above the industry average of 10.80%.
The last Return On Invested Capital (15.38%) for SNA is above the 3 year average (15.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.38% | ||
| ROE | 19.96% | ||
| ROIC | 15.38% |
ROA(3y)12.87%
ROA(5y)12.07%
ROE(3y)19.97%
ROE(5y)19.33%
ROIC(3y)15.36%
ROIC(5y)14.82%
1.3 Margins
SNA has a Profit Margin of 20.06%. This is amongst the best in the industry. SNA outperforms 97.69% of its industry peers.
SNA's Profit Margin has improved in the last couple of years.
SNA's Operating Margin of 25.88% is amongst the best of the industry. SNA outperforms 97.69% of its industry peers.
In the last couple of years the Operating Margin of SNA has grown nicely.
The Gross Margin of SNA (51.40%) is better than 94.62% 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 | 25.88% | ||
| PM (TTM) | 20.06% | ||
| GM | 51.4% |
OM growth 3Y3.67%
OM growth 5Y1.82%
PM growth 3Y7.56%
PM growth 5Y3.45%
GM growth 3Y-1.44%
GM growth 5Y-1.04%
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
SNA has an Altman-Z score of 6.49. This indicates that SNA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.49, SNA belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
The Debt to FCF ratio of SNA is 1.09, which is an excellent value as it means it would take SNA, only 1.09 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SNA (1.09) is better than 87.69% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that SNA is not too dependend on debt financing.
SNA's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. SNA outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.09 | ||
| Altman-Z | 6.49 |
ROIC/WACC1.7
WACC9.04%
2.3 Liquidity
A Current Ratio of 3.82 indicates that SNA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.82, SNA belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
A Quick Ratio of 2.83 indicates that SNA has no problem at all paying its short term obligations.
SNA has a Quick ratio of 2.83. This is amongst the best in the industry. SNA outperforms 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.43% over the past year.
The Earnings Per Share has been growing by 9.69% on average over the past years. This is quite good.
Looking at the last year, SNA shows a small growth in Revenue. The Revenue has grown by 3.69% in the last year.
Measured over the past years, SNA shows a small growth in Revenue. The Revenue has been growing by 4.65% on average per year.
EPS 1Y (TTM)8.43%
EPS 3Y17.26%
EPS 5Y9.69%
EPS growth Q2Q3.26%
Revenue 1Y (TTM)3.69%
Revenue growth 3Y9.02%
Revenue growth 5Y4.65%
Revenue growth Q2Q0.49%
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 4.87% on average per year.
SNA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y2.43%
EPS Next 2Y4%
EPS Next 3Y5.24%
EPS Next 5Y4.87%
Revenue Next Year2.51%
Revenue Next 2Y3.12%
Revenue Next 3Y4.03%
Revenue Next 5Y3.73%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.81, which indicates a correct 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 78.46% of the companies listed in the same industry.
SNA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.80 indicates a correct valuation of SNA.
Based on the Price/Forward Earnings ratio, SNA is valued a bit cheaper than 79.23% of the companies in the same industry.
SNA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.24, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 13.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNA is valued a bit cheaper than the industry average as 72.31% of the companies are valued more expensively.
84.62% 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 | 13.33 | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SNA does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of SNA may justify a higher PE ratio.
PEG (NY)6.11
PEG (5Y)1.53
EPS Next 2Y4%
EPS Next 3Y5.24%
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 1.66. SNA pays more dividend than 92.31% of the companies in the same industry.
SNA's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
The dividend of SNA is nicely growing with an annual growth rate of 25.04%!
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)25.04%
Div Incr Years14
Div Non Decr Years19
5.3 Sustainability
35.84% of the earnings are spent on dividend by SNA. This is a low number and sustainable payout ratio.
The dividend of SNA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.84%
EPS Next 2Y4%
EPS Next 3Y5.24%
SNAP-ON INC
NYSE:SNA (5/13/2024, 7:04:00 PM)
After market: 279.93 0 (0%)279.93
-0.98 (-0.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 13.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.11
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.38% | ||
| ROE | 19.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.88% | ||
| PM (TTM) | 20.06% | ||
| GM | 51.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.83 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.43%
EPS 3Y17.26%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.69%
Revenue growth 3Y9.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y