10Y annualized return is
positive but below market average
at 6.2% per year
SNA has met or exceeded earnings expectations in
all
recent quarters (10/10)
Attractive PE Ratio
Reasonable Price to Sales Ratio
Strong Net Profit Margin
High Return on Equity
Strong Liquidity Ratios
Low Debt Levels
🏆 Strong Market Position
🌟 High Franchise Satisfaction
🛠️ Diverse Product Offerings
🚀 Growth in Critical Industries
🔍 Innovation in Diagnostics
High EV/EBITDA Ratio
Operating Profit Margin
Moderate Dividend Payout
⚠️ Dependence on Macro Environment
📉 Tools Group Sales Decline
📉 Decline in Extended Credit Originations
Overall, Snap-on demonstrates a strong business model with competitive advantages in the vehicle repair market. However, it faces challenges from macroeconomic factors and shifts in customer preferences which could impact short-term performance. The company is well-positioned for future growth, especially in critical industries and through innovative product offerings.
Analysis Date: February 6, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Snap-on Incorporated makes and sells a wide range of tools and equipment used by professionals, like mechanics and technicians. They offer hand tools, power tools, and tool storage solutions, helping workers fix and maintain vehicles and machinery. Additionally, Snap-on provides diagnostic tools and software that help identify problems in vehicles, making repairs easier. Founded in 1920, the company serves various industries, including automotive, aviation, and construction, ensuring that professionals have the right tools for their jobs.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
Snap-on NYSE: SNA certainly gave its investors a reason to sell when it released its Q1 earnings report in May 2025. However, despite the weaknesses, ...
Snap-on Incorporated (NYSE:SNA ) Q1 2025 Earnings Conference Call April 18, 2025 10:00 AM ET Company Participants Sara Verbsky - VP, IR Nick Pinchuk -...
SNA's Q1 results reflect sales and earnings decline amid economic uncertainty, with segmental softness particularly in the Tools Group.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$764.07
Current Market Price: $313.90
IV/P Ratio: 2.43x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
59.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for SNA
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (15.87)
P/B ratio ≤ 1.5 (3.07)
Current ratio ≥ 2.0 (4.15x)
Long-term debt < Net current assets (0.41x)
Margin of safety (59.0%)
SNA does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
18.84%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
51.28%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
21.27%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
A net profit margin of 21.27% indicates that the company retains a significant portion of revenue as profit, showcasing effective cost management.
The return on equity of 19.61% demonstrates that the company is efficient in generating profits from shareholders' equity.
While the operating profit margin is respectable at 27.19%, it could be improved further to enhance operational efficiency.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.24x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
4.15x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
With a current ratio of 4.15 and a quick ratio of 3.17, the company demonstrates excellent liquidity, indicating its ability to meet short-term obligations.
The debt to equity ratio of 0.24 and debt to assets ratio of 0.16 indicate conservative leveraging, reducing financial risk.
The dividend payout ratio of 38.93% suggests that while the company returns some profits to shareholders, a significant portion is retained, which may not appeal to income-focused investors.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Snap-on holds a robust position in the vehicle repair market with significant competitive advantages. The company's blend of innovative tools and comprehensive data solutions enables technicians to address the rising complexity of modern vehicles, which is critical in a market experiencing increasing vehicle ages and complexities.
Snap-on has consistently ranked well among franchisees, being recognized as a top 50 franchise for the 18th consecutive year. This reflects strong franchisee satisfaction and loyalty, which is a key element of the company's business model.
The company has successfully diversified its product lines, including customized kits and precision torque tools, responding to the needs of critical industries and auto repair markets, which enhances its competitive edge.
Snap-on's performance is still influenced by macroeconomic uncertainties, such as inflation and geopolitical factors, which can impact customer confidence and spending patterns.
The Tools Group experienced a decline in sales, indicating that while the company is pivoting, it still faces challenges in adapting to changing customer preferences for smaller, quicker payback items.
Snap-on's critical industries segment is showing strong growth potential, particularly through customized tooling solutions in sectors like aviation and natural resources, which are anticipated to drive future sales.
The company is investing in smart diagnostic tools like the APOLLO+, which enhance technician efficiency and are expected to capture a larger share of the diagnostic equipment market.
There has been a decrease in loan originations for big-ticket items, indicating a potential slowdown in customer willingness to finance larger purchases, which may hinder sales growth in the Tools Group.