SNAP-ON INC (SNA) Stock Fundamental Analysis
NYSE:SNA - New York Stock Exchange, Inc. - US8330341012 - Common Stock - Currency: USD
SNA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. SNA gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
SNA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SNA has a Return On Assets of 12.65%. This is amongst the best in the industry. SNA outperforms 89.06% of its industry peers.
SNA has a better Return On Equity (18.49%) than 79.69% of its industry peers.
SNA's Return On Invested Capital of 14.66% is amongst the best of the industry. SNA outperforms 85.94% of its industry peers.
SNA had an Average Return On Invested Capital over the past 3 years of 15.48%. This is significantly above the industry average of 10.31%.
| 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
The Profit Margin of SNA (20.14%) is better than 96.09% of its industry peers.
In the last couple of years the Profit Margin of SNA has grown nicely.
Looking at the Operating Margin, with a value of 26.26%, SNA belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
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 93.75% of the companies in the same industry.
SNA's Gross Margin has been stable in the last couple of years.
| 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
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.
The debt/assets ratio for SNA has been reduced compared to a year ago.
2.2 Solvency
SNA has an Altman-Z score of 7.00. This indicates that SNA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.00, SNA belongs to the best of the industry, outperforming 88.28% of the companies in the same industry.
SNA has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
SNA has a better Debt to FCF ratio (1.11) than 85.16% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that SNA is not too dependend on debt financing.
SNA has a Debt to Equity ratio of 0.21. This is in the better half of the industry: SNA outperforms 71.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 7 |
ROIC/WACC1.42
WACC10.31%
2.3 Liquidity
SNA has a Current Ratio of 4.14. This indicates that SNA is financially healthy and has no problem in meeting its short term obligations.
SNA has a better Current ratio (4.14) than 86.72% of its industry peers.
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.
With an excellent Quick ratio value of 3.18, SNA belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
| 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.
SNA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.53% yearly.
Looking at the last year, SNA shows a decrease in Revenue. The Revenue has decreased by -0.88% in the last year.
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
The Earnings Per Share is expected to grow by 4.88% 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 3.64% on average per year.
EPS Next Y-2.09%
EPS Next 2Y2.57%
EPS Next 3Y5.02%
EPS Next 5Y4.88%
Revenue Next Year-0.65%
Revenue Next 2Y1.89%
Revenue Next 3Y3.39%
Revenue Next 5Y3.64%
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
With a Price/Earnings ratio of 17.11, SNA is valued on the expensive side.
Based on the Price/Earnings ratio, SNA is valued a bit cheaper than 71.88% of the companies in the same industry.
When comparing the Price/Earnings ratio of SNA to the average of the S&P500 Index (26.60), we can say SNA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.06, the valuation of SNA can be described as correct.
Based on the Price/Forward Earnings ratio, SNA is valued a bit cheaper than the industry average as 66.41% of the companies are valued more expensively.
SNA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 16.06 |
4.2 Price Multiples
SNA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SNA is cheaper than 64.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SNA is valued a bit cheaper than 75.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.78 | ||
| EV/EBITDA | 11.8 |
4.3 Compensation for Growth
SNA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.8
EPS Next 2Y2.57%
EPS Next 3Y5.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.61%, 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 90.63% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SNA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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 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 2Y2.57%
EPS Next 3Y5.02%
326.73
-5.19 (-1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.19%
Inst Owner Change3.05%
Ins Owners2.11%
Ins Owner Change5.62%
Market Cap17.08B
Analysts70
Price Target338.7 (3.66%)
Short Float %4.65%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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)-3.23%
PT rev (3m)-3.43%
EPS NQ rev (1m)-6.31%
EPS NQ rev (3m)-7.9%
EPS NY rev (1m)-3.84%
EPS NY rev (3m)-5.32%
Revenue NQ rev (1m)-3.69%
Revenue NQ rev (3m)-4.4%
Revenue NY rev (1m)-3.17%
Revenue NY rev (3m)-4.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 16.06 | ||
| P/S | 3.37 | ||
| P/FCF | 15.78 | ||
| P/OCF | 14.64 | ||
| P/B | 3.09 | ||
| P/tB | 4.1 | ||
| EV/EBITDA | 11.8 |
EPS(TTM)19.1
EY5.85%
EPS(NY)20.35
Fwd EY6.23%
FCF(TTM)20.71
FCFY6.34%
OCF(TTM)22.32
OCFY6.83%
SpS96.95
BVpS105.58
TBVpS79.78
PEG (NY)N/A
PEG (5Y)1.8
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 | 7 |
F-Score7
WACC10.31%
ROIC/WACC1.42
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-2.09%
EPS Next 2Y2.57%
EPS Next 3Y5.02%
EPS Next 5Y4.88%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y3.54%
Revenue growth 5Y4.66%
Sales Q2Q%-3.48%
Revenue Next Year-0.65%
Revenue Next 2Y1.89%
Revenue Next 3Y3.39%
Revenue Next 5Y3.64%
EBIT growth 1Y-0.28%
EBIT growth 3Y6.79%
EBIT growth 5Y7.48%
EBIT Next Year11.72%
EBIT Next 3Y8.12%
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%