Snap-on (SNA) AI Stock Analysis

• Market Cap: $17.71B
• Dividend Yield: 2.6%
• Average Volume (3M): 318.43K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.78
• Revenue Growth: 0.24%
• EPS Growth: -1.85%
• Country: US
• Employees: 13,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 5.02
• Shares Outstanding: 52,007,557
• 10 Day Avg. Volume: 295,558
• 30 Day Avg. Volume: 318,434
• PEG Ratio: 4.47
• Price to Book (P/B): 3.35
• Price to Sales (P/S): 3.54
• P/FCF Ratio: 15.94
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 3.49
• Enterprise Value/Gross Profit: 6.74
• Enterprise Value/Ebitda: 12.03
• 1Y Price Target: $376.25
• Price Target Upside: 10.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 19.07
• Revenue Forecast (FY): $4.74B

• Rating: 75 Outperform
• Price Target: $374.00 ▲(9.82% Upside)

Snap-on's overall stock score reflects its strong financial performance and positive earnings call, which are the most significant factors. While technical analysis shows mixed signals, the company's reasonable valuation and strategic confidence support a favorable outlook.

Positive Factors

Strong Cash Flow Management

Snap-on's strong cash flow management ensures ample liquidity for operational needs and strategic investments, supporting long-term growth.

Robust Operating Margins

High operating margins reflect efficient cost control and pricing power, enhancing profitability and competitive positioning.

Resilient Market Position

Snap-on's strategic confidence and diverse market reach bolster its resilience against economic fluctuations, ensuring sustained growth.

Negative Factors

Revenue Growth Decline

A decline in revenue growth can signal challenges in market expansion or product demand, potentially impacting future profitability.

Weakness in Tool Storage

Continued weakness in tool storage sales may indicate competitive pressures or shifting customer preferences, affecting segment performance.

Decline in Financial Services Earnings

A decline in financial services earnings could limit Snap-on's ability to support its core business operations and strategic initiatives.

Snap-on Business Overview & Revenue Model

Company Description

Snap-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 Money

Snap-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 Financial Statement Overview

Summary

Snap-on's financial performance is strong, with robust profitability and efficient cost management. The company maintains healthy margins and demonstrates excellent cash flow management, positioning it well within its industry.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.12B	5.11B	5.11B	4.84B	4.60B	3.59B
Gross Profit	2.65B	2.65B	2.62B	2.45B	2.38B	1.75B
EBITDA	1.49B	1.52B	1.48B	1.35B	1.24B	985.90M
Net Income	1.01B	1.04B	1.01B	911.70M	820.50M	627.00M
Balance Sheet
Total Assets	8.36B	7.90B	7.54B	6.97B	6.76B	6.56B
Cash, Cash Equivalents and Short-Term Investments	1.53B	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	2.51B	2.48B	2.45B	2.47B	2.56B	2.71B
Stockholders Equity	5.82B	5.39B	5.07B	4.48B	4.18B	3.82B
Cash Flow
Free Cash Flow	1.03B	1.13B	1.06B	591.00M	896.50M	943.00M
Operating Cash Flow	1.11B	1.22B	1.15B	675.20M	966.60M	1.01B
Investing Cash Flow	-139.20M	-204.10M	-331.80M	-206.20M	-290.40M	-187.80M
Financing Cash Flow	-746.90M	-649.80M	-572.90M	-485.00M	-818.80M	-84.30M

Snap-on Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 340.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 340.56 is above the 20-day moving average (MA) of 335.13, above the 50-day MA of 336.81, and above the 200-day MA of 323.62, indicating a bullish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 56.79 is Neutral, neither overbought nor oversold. The STOCH value of 75.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNA.

Snap-on Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBC	77 Outperform	$14.01B	54.09	8.54%	―	8.27%	19.06%
TKR	76 Outperform	$5.67B	19.25	9.80%	1.71%	-1.01%	-12.13%
LECO	75 Outperform	$13.14B	25.59	38.11%	1.26%	3.27%	10.89%
SNA	75 Outperform	$17.71B	17.85	17.96%	2.60%	0.24%	-1.85%
KMT	72 Outperform	$2.10B	22.71	7.36%	2.89%	-2.63%	-4.46%
SWK	64 Neutral	$11.13B	24.85	4.92%	4.86%	-1.40%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Snap-on Corporate Events

Snap-on Inc. Reports Solid Q3 2025 Performance

Snap-on Incorporated is a global leader in the manufacturing and marketing of tools, equipment, diagnostics, and systems solutions for professional users across various critical industries, including automotive repair, aerospace, and manufacturing.

Snap-on Inc. Reports Record Sales and Strong EPS

Snap-on Inc. recently held its earnings call, revealing a generally positive sentiment with record sales and strong performance in key segments. Despite some challenges, such as a decline in financial services earnings and ongoing weakness in tool storage, the company’s strong sales growth and improved operating margins were the highlights of the discussion.