Snap-on Incorporated
Snap-on Incorporated Fundamental Analysis
Snap-on Incorporated (SNA) shows moderate financial fundamentals with a PE ratio of 18.29, profit margin of 19.72%, and ROE of 17.70%. The company generates $5.2B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SNA's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSNA demonstrates superior asset utilization.
Valuation Score
ModerateSNA shows balanced valuation metrics.
Growth Score
WeakSNA faces weak or negative growth trends.
Financial Health Score
ExcellentSNA maintains a strong and stable balance sheet.
Profitability Score
ExcellentSNA achieves industry-leading margins.
Key Financial Metrics
Is SNA Expensive or Cheap?
P/E Ratio
SNA trades at 18.29 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SNA's PEG of 32.26 indicates potential overvaluation.
Price to Book
The market values Snap-on Incorporated at 3.14 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.77 times EBITDA. This signals the market has high growth expectations.
How Well Does SNA Make Money?
Net Profit Margin
For every $100 in sales, Snap-on Incorporated keeps $19.72 as profit after all expenses.
Operating Margin
Core operations generate 25.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.70 in profit for every $100 of shareholder equity.
ROA
Snap-on Incorporated generates $12.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Snap-on Incorporated produces operating cash flow of $1.08B, showing steady but balanced cash generation.
Free Cash Flow
Snap-on Incorporated generates strong free cash flow of $1.01B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $19.38 in free cash annually.
FCF Yield
SNA converts 5.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
32.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How SNA Stacks Against Its Sector Peers
| Metric | SNA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.29 | 25.24 | Better (Cheaper) |
| ROE | 17.70% | 1281.00% | Weak |
| Net Margin | 19.72% | -44434.00% (disorted) | Strong |
| Debt/Equity | 0.22 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 4.79 | 10.59 | Strong Liquidity |
| ROA | 12.09% | -1528290.00% (disorted) | Strong |
SNA outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Snap-on Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-100.00%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-100.00%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-100.00%
Industry Style: Cyclical, Value, Infrastructure
Declining