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Snap-on (SNA)
NYSE:SNA
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Snap-on
(NYSE:SNA)
Rating:78Outperform
Price Target:
$371.00
▲(12.35% Upside)
Positive Factors
Automotive Repair Environment
The automotive repair environment remains favorable as the quarter saw mixed but improved results within its technician base.
Earnings
Q2/25 results were better than estimates that called for net sales of $1.12 billion and EPS of $4.47.
Negative Factors
C&I Sales Decline
C&I sales decreased by 6.5% to $347.8 million with an operating margin decrease of 320 bps to 13.5%.
Macroeconomic Uncertainties
The Tools Group was impacted by macroeconomic uncertainties that saw technicians accelerating their reluctance to purchase big-ticket financed products.
Snap-on (SNA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.20B
Dividend Yield2.59%
Average Volume (3M)306.63K
Price to Earnings (P/E)17.5
Beta (1Y)0.81
Revenue Growth-0.76%
EPS Growth-2.62%
CountryUS
Employees13,000
SectorIndustrials
Sector Strength76
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)4.72
Shares Outstanding52,163,372
10 Day Avg. Volume243,470
30 Day Avg. Volume306,625
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue3.43
Enterprise Value/Gross Profit6.94
Enterprise Value/Ebitda11.36
Forecast
1Y Price Target
$335.40Price Target Upside1.57% Upside
Rating ConsensusHold
Number of Analyst Covering6
Snap-on Business Overview & Revenue Model
Company DescriptionSnap-on Incorporated (SNA) is a leading global innovator, manufacturer, and marketer of tools, equipment, diagnostics, and repair information. Established in 1920, the company serves a diverse range of sectors including automotive, aviation, and industrial markets. Snap-on is renowned for its high-quality hand tools, power tools, tool storage solutions, and software services that aid in vehicle maintenance and repair.
How the Company Makes MoneySnap-on generates revenue primarily through the sale of its tools and equipment, which are distributed via multiple channels including franchised mobile tool dealerships, company-owned stores, and direct sales. The franchise model is a significant revenue stream, allowing independent dealers to operate mobile tool sales businesses, while Snap-on benefits from the franchise fees and product sales. Additionally, Snap-on earns income from its diagnostics and repair information services, which provide automotive professionals with essential data and tools for effective vehicle servicing. The company also collaborates with various industrial partners and educational institutions, enhancing its market reach and driving sales through specialized training programs and tailored solutions.
Snap-on Key Performance Indicators (KPIs)
Any
Operating Margin by Segment
Shows the percentage of revenue that remains after operating expenses for each segment, indicating the efficiency and profitability of different parts of the business.
Shows the percentage of revenue that remains after operating expenses for each segment, indicating the efficiency and profitability of different parts of the business.
Data provided by:
Main Street Data
Main Street DataSnap-on Earnings Call Summary
Earnings Call Date:Jul 17, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment, with Snap-on demonstrating resilience and growth in certain segments like RSNI and the Tools Group, but facing challenges in the C&I segment and international markets. While the company made strategic advancements with new products, it also dealt with declines in operating income and financial services earnings.Q2-2025 Updates
Positive Updates
Tools Group Organic Sales Increase
The Tools Group reported an organic sales increase of 1.6%, with a low single-digit improvement in the US, despite a flat international network.
RSNI Group Performance
RSNI Group saw organic sales increase by 2.3%, driven by a high single-digit advancement in diagnostic information and strong double-digit improvements in OEM businesses.
Strong Gross Margin
The company achieved a consolidated gross margin of 50.5%, only 10 basis points down from last year, despite 50 basis points of unfavorable currency effects.
Introduction of New Products
Snap-on introduced various new products, such as the Triton diagnostics platform and new hand tools, which have been well-received in the market.
Resilience in Automotive Repair Markets
Sales in automotive repair markets were up, with gains in franchise van channels and activity with OEM dealerships and independent repair shop owners.
Negative Updates
C&I Group Sales Decline
The Commercial & Industrial (C&I) Group reported a 7.6% organic sales decline, with the segment being most impacted by international market disruptions and project delays.
Decrease in Operating Income
Operating income decreased by 7.6% compared to last year, largely due to increased personnel and other costs, as well as the absence of a non-recurring legal payment from the previous year.
Financial Services Operating Earnings Decline
Financial services operating earnings were $68,200,000, down 2.8% from last year, with increased expenses and higher provisions for credit losses.
Challenges in International Markets
The company faced significant challenges in international markets, particularly in Asia and Europe, due to geopolitical and economic uncertainties.
Company Guidance
During Snap-on Incorporated's 2025 second-quarter results conference call, the company provided several key metrics and insights into their performance. Sales for the quarter were $1,179.4 million, flat compared to the previous year, with organic sales down by 0.7%. Operating income was $259.1 million, reflecting a 7.6% decline from the previous year, while the operating margin stood at 22%. The company's EPS for the quarter was reported at $4.72, which was 35¢ lower than the prior year, affected by a 16¢ legal payment from 2024 and a 9¢ impact from higher pension amortization costs. Financial services saw a slight decline in operating earnings to $68.2 million, down 2.8% from last year. The automotive repair environment remained favorable, with the tools group reporting a 1.6% increase in organic sales, primarily driven by hand tools and diagnostics. The RSNI group posted a 2.3% increase in organic sales, supported by strong gains in OEM dealerships. Challenges persisted within the commercial and industrial segment, with a 7.6% organic sales decline, largely attributed to geopolitical uncertainties impacting international markets. Despite these challenges, Snap-on emphasized its strong operational foundation, brand strength, and ongoing investment in products and people as key strategies for navigating current market conditions.Snap-on Financial Statement Overview
Summary
Snap-on's financial performance is strong, with robust profitability and cash flow metrics. The company maintains a healthy balance sheet with conservative leverage and impressive return on equity. Despite a slight revenue decrease, the company shows resilience in core operations.Income Statement
Snap-on demonstrated strong profitability with a consistent gross profit margin of around 49-50% over the TTM (Trailing-Twelve-Months) period. The net profit margin is robust at 21% for the TTM, showing effective cost management and operational efficiency. Despite a slight decrease in revenue from 2023 to the TTM in 2025, the company has maintained healthy EBIT and EBITDA margins, suggesting resilience in core operations.85
Very Positive
Balance Sheet
The balance sheet for Snap-on is solid, with a low debt-to-equity ratio of 0.21 for the TTM, indicating conservative leverage. The equity ratio stands at 69.7%, highlighting strong asset backing by equity. Return on equity is impressive at 17.5% for the TTM, reflecting efficient use of shareholders' capital. This financial stability positions Snap-on well for future growth.80
Positive
Cash Flow
Cash flow analysis reveals excellent cash management, with the operating cash flow to net income ratio at 1.10 for the TTM, indicating strong cash conversion from net income. The free cash flow growth rate is positive, and the free cash flow to net income ratio of 1.02 shows that Snap-on is generating ample free cash flow relative to its net earnings, supporting operational and strategic initiatives.88
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.77B | 4.71B | 5.11B | 4.49B | 4.25B | 3.59B |
| Gross Profit | 2.36B | 2.38B | 2.62B | 2.18B | 2.11B | 1.75B |
| EBITDA | 1.44B | 1.52B | 1.48B | 1.35B | 1.25B | 991.40M |
| Net Income | 1.00B | 1.04B | 1.01B | 911.70M | 820.50M | 627.00M |
Balance Sheet | ||||||
| Total Assets | 8.20B | 7.90B | 7.54B | 6.97B | 6.76B | 6.56B |
| Cash, Cash Equivalents and Short-Term Investments | 1.46B | 1.36B | 1.00B | 757.20M | 780.00M | 923.40M |
| Total Debt | 1.27B | 1.29B | 1.28B | 1.27B | 1.25B | 1.50B |
| Total Liabilities | 2.46B | 2.48B | 2.45B | 2.47B | 2.56B | 2.71B |
| Stockholders Equity | 5.72B | 5.39B | 5.07B | 4.48B | 4.18B | 3.82B |
Cash Flow | ||||||
| Free Cash Flow | 1.02B | 1.13B | 1.06B | 591.00M | 896.50M | 943.00M |
| Operating Cash Flow | 1.10B | 1.22B | 1.15B | 675.20M | 966.60M | 1.01B |
| Investing Cash Flow | -158.70M | -204.10M | -331.80M | -206.20M | -290.40M | -187.80M |
| Financing Cash Flow | -722.20M | -649.80M | -572.90M | -485.00M | -818.80M | -84.30M |
Snap-on Technical Analysis
Positive
330.21
Price Trends
319.44
Positive
317.43
Positive
328.37
Positive
Market Momentum
2.38
Negative
57.36
Neutral
62.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNA, the sentiment is Positive. The current price of 330.21 is above the 20-day moving average (MA) of 323.19, above the 50-day MA of 319.44, and above the 200-day MA of 328.37, indicating a bullish trend. The MACD of 2.38 indicates Negative momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 62.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNA.
Snap-on Risk Analysis
Snap-on disclosed 26 risk factors in its most recent earnings report. Snap-on reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Snap-on Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $17.20B | 17.53 | 18.18% | 2.59% | -0.76% | -2.62% | |
78 Outperform | $12.59B | 50.25 | 8.56% | ― | 5.48% | 16.88% | |
78 Outperform | $13.59B | 27.65 | 37.35% | 1.19% | 0.24% | 0.05% | |
75 Outperform | $5.50B | 18.03 | 10.52% | 1.75% | -2.01% | -9.95% | |
69 Neutral | $11.64B | 23.84 | 5.38% | 4.33% | -2.71% | ― | |
64 Neutral | $10.95B | 16.37 | 8.81% | 1.96% | 2.68% | -15.33% | |
60 Neutral | $1.63B | 17.99 | 7.35% | 3.70% | -3.91% | -12.49% |
* Industrials Sector Average
Performance Comparison
SNA
Snap-on
330.21
56.15
20.49%
KMT
Kennametal
21.60
-3.28
-13.18%
LECO
Lincoln Electric Holdings
247.76
57.36
30.13%
RBC
RBC Bearings
399.53
102.27
34.40%
SWK
Stanley Black & Decker
75.74
-22.17
-22.64%
TKR
Timken Company
79.01
-3.27
-3.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.