SNAP-ON INC (SNA) Stock Fundamental Analysis
NYSE:SNA - New York Stock Exchange, Inc. - US8330341012 - Common Stock - Currency: USD
Overall SNA gets a fundamental rating of 7 out of 10. We evaluated SNA against 128 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SNA had positive earnings in the past year.
SNA had a positive operating cash flow in the past year.
SNA had positive earnings in each of the past 5 years.
In the past 5 years SNA always reported a positive cash flow from operatings.
1.2 Ratios
SNA's Return On Assets of 12.19% is amongst the best of the industry. SNA outperforms 88.19% of its industry peers.
The Return On Equity of SNA (17.50%) is better than 76.38% of its industry peers.
SNA's Return On Invested Capital of 13.91% is amongst the best of the industry. SNA outperforms 82.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SNA is above the industry average of 10.82%.
| 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
Looking at the Profit Margin, with a value of 19.72%, SNA belongs to the top of the industry, outperforming 96.06% of the companies in the same industry.
SNA's Profit Margin has improved in the last couple of years.
SNA's Operating Margin of 25.57% is amongst the best of the industry. SNA outperforms 96.85% of its industry peers.
SNA's Operating Margin has improved in the last couple of years.
SNA has a Gross Margin of 51.96%. This is amongst the best in the industry. SNA outperforms 92.91% of its industry peers.
SNA's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SNA is still creating some value.
The number of shares outstanding for SNA has been reduced compared to 1 year ago.
The number of shares outstanding for SNA has been reduced compared to 5 years ago.
Compared to 1 year ago, SNA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.96 indicates that SNA is not in any danger for bankruptcy at the moment.
The Altman-Z score of SNA (6.96) is better than 88.19% of its industry peers.
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 has a better Debt to FCF ratio (1.18) than 81.89% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that SNA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.21, SNA is doing good in the industry, outperforming 70.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 6.96 |
ROIC/WACC1.52
WACC9.14%
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 89.76% of its industry peers.
A Quick Ratio of 3.42 indicates that SNA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.42, SNA belongs to the top 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%.
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 -0.76%.
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)-1.73%
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 4.58% on average over the next years.
Based on estimates for the next years, SNA will show a small growth in Revenue. The Revenue will grow by 3.24% on average per year.
EPS Next Y-2.28%
EPS Next 2Y2.56%
EPS Next 3Y4.81%
EPS Next 5Y4.58%
Revenue Next Year-0.48%
Revenue Next 2Y1.43%
Revenue Next 3Y2.82%
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
A Price/Earnings ratio of 16.95 indicates a correct valuation of SNA.
Based on the Price/Earnings ratio, SNA is valued a bit cheaper than the industry average as 74.02% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.82. SNA is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.62, SNA is valued correctly.
Based on the Price/Forward Earnings ratio, SNA is valued a bit cheaper than 66.93% of the companies in the same industry.
SNA is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 15.62 |
4.2 Price Multiples
SNA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SNA is cheaper than 63.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SNA is valued a bit cheaper than the industry average as 72.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.21 | ||
| EV/EBITDA | 11.71 |
4.3 Compensation for Growth
SNA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.78
EPS Next 2Y2.56%
EPS Next 3Y4.81%
5. Dividend
5.1 Amount
SNA has a Yearly Dividend Yield of 2.67%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.91, SNA pays a better dividend. On top of this SNA pays more dividend than 88.19% of the companies listed in the same industry.
SNA's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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.
The dividend of SNA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.42%
EPS Next 2Y2.56%
EPS Next 3Y4.81%
317.79
-3.4 (-1.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.37%
Inst Owner Change-0.76%
Ins Owners2.26%
Ins Owner Change5.2%
Market Cap16.58B
Analysts70.67
Price Target339.85 (6.94%)
Short Float %4.98%
Short Ratio7.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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)0.34%
PT rev (3m)-0.21%
EPS NQ rev (1m)0.64%
EPS NQ rev (3m)-5.61%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-4.02%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 15.62 | ||
| P/S | 3.27 | ||
| P/FCF | 16.21 | ||
| P/OCF | 15.02 | ||
| P/B | 2.9 | ||
| P/tB | 3.82 | ||
| EV/EBITDA | 11.71 |
EPS(TTM)18.75
EY5.9%
EPS(NY)20.34
Fwd EY6.4%
FCF(TTM)19.6
FCFY6.17%
OCF(TTM)21.15
OCFY6.66%
SpS97.22
BVpS109.58
TBVpS83.16
PEG (NY)N/A
PEG (5Y)1.78
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 | 6.96 |
F-Score7
WACC9.14%
ROIC/WACC1.52
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-2.28%
EPS Next 2Y2.56%
EPS Next 3Y4.81%
EPS Next 5Y4.58%
Revenue 1Y (TTM)-0.76%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%0%
Revenue Next Year-0.48%
Revenue Next 2Y1.43%
Revenue Next 3Y2.82%
Revenue Next 5Y3.24%
EBIT growth 1Y-4.13%
EBIT growth 3Y6.79%
EBIT growth 5Y7.48%
EBIT Next Year7%
EBIT Next 3Y7.48%
EBIT Next 5Y-0.89%
FCF growth 1Y24.53%
FCF growth 3Y8.15%
FCF growth 5Y14.54%
OCF growth 1Y20.93%
OCF growth 3Y8%
OCF growth 5Y12.53%