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Snap-on Inc (SNA)
NYSE:SNA
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Snap-on
(NYSE:SNA)
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Rating:78Outperform
Price Target:
$421.00
▲(9.29% Upside)
Action:ReiteratedDate:02/07/26
SNA scores well primarily on strong, durable financial performance (high margins and conservative leverage). Technicals are supportive with price above key moving averages, while valuation is reasonable with a solid dividend. The latest earnings call was mildly positive but tempered by limited forward guidance and pockets of margin/working-capital pressure.
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 (SNA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.00B
Dividend Yield2.52%
Average Volume (3M)361.48K
Price to Earnings (P/E)20.1
Beta (1Y)0.78
Revenue Growth0.24%
EPS Growth-1.85%
CountryUS
Employees13,000
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)4.94
Shares Outstanding51,913,120
10 Day Avg. Volume297,956
30 Day Avg. Volume361,475
Financial Highlights & Ratios
PEG Ratio-10.82
Price to Book (P/B)3.08
Price to Sales (P/S)3.55
P/FCF Ratio18.18
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue3.83
Enterprise Value/Gross Profit7.40
Enterprise Value/Ebitda13.29
Forecast
1Y Price Target
$386.10Price Target Upside0.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)19.93
Revenue Forecast (FY)$4.89B
Snap-on Business Overview & Revenue Model
Company DescriptionSnap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. It operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments. The company offers hand tools, including wrenches, sockets, ratchet wrenches, pliers, screwdrivers, punches and chisels, saws and cutting tools, pruning tools, torque measuring instruments, and other products; power tools, such as cordless, pneumatic, hydraulic, and corded tools; and tool storage products comprising tool chests, roll cabinets, and other products. It also provides handheld and computer-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services, point-of-sale systems, integrated systems for vehicle service shops, original equipment manufacturer purchasing facilitation services, and warranty management systems and analytics. In addition, the company offers solutions for the service of vehicles and industrial equipment that include wheel alignment equipment, wheel balancers, tire changers, vehicle lifts, test lane equipment, collision repair equipment, vehicle air conditioning service equipment, brake service equipment, fluid exchange equipment, transmission troubleshooting equipment, safety testing equipment, battery chargers, and hoists, as well as after-sales support services and training programs. Further, it provides financing programs to facilitate the sales of its products and support its franchise business. The company serves the aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation, and technical education industries, as well as vehicle dealerships and repair centers. Snap-on Incorporated was founded in 1920 and is based in Kenosha, Wisconsin.
How the Company Makes MoneySnap-on generates revenue primarily through the sale of its tools and equipment, which are sold directly to professional users in various industries. The company employs a unique franchise model that allows independent franchisees to sell its products directly to customers, providing a significant portion of its revenue. Additionally, Snap-on benefits from its automotive repair and diagnostic software solutions, which provide recurring revenue through subscriptions and updates. Key revenue streams include tool sales, franchise royalties, and service solutions, while strategic partnerships with automotive manufacturers and service providers enhance its market presence and drive sales. The company's focus on innovation and quality also contributes to customer loyalty and repeat business, further solidifying its earnings.
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:
The Fly
The FlySnap-on Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call portrayed a resilient quarter with modest consolidated top‑line growth, EPS improvement, successful new product rollouts, margin gains in the Tools group, and strong financial services performance, while management continues to invest in brand and software. Offsetting positives were margin pressure in certain operating segments (C&I and RS&I), flat tools volume with some subsegment weakness, build in working capital (receivables/inventory), and regional macro headwinds. Overall the results highlight operational resilience and strategic investments but also show areas where costs and timing impacted margins.Q4-2025 Updates
Positive Updates
Consolidated Revenue Growth
Net sales of $1,231.9M in Q4, up 2.8% year‑over‑year (1.4% organic) with $15.6M favorable foreign currency translation.
Earnings Per Share and Net Income Improvement
Diluted EPS of $4.94, up $0.12 from $4.82 a year ago (+2.5%); net earnings of $260.7M versus $258.1M, a modest increase.
Dividend Increase and Capital Returns
Raised quarterly dividend by 14% in November (16th consecutive year of increases); returned capital via repurchase of 227,000 shares for $80.4M and paid $126.7M in dividends in the quarter.
Commercial & Industrial (C&I) Revenue Momentum
C&I sales of $398.1M, up $18.9M or ~5% year‑over‑year (2.8% organic + $7.9M FX), fueled by double‑digit power tools growth and improving critical industries activity; benefited from $4.5M net gain from footprint refinement actions.
Tools Group Margin Expansion and Product Success
Tools sales roughly flat at $505.0M (down 0.3% reported; -0.7% organic) while gross margin improved 150 bps to 46.1% and operating margin rose 10 bps to 21.2%; new product successes (e.g., NanoAxis cordless driver, long‑shaft impact sockets, new storage configuration) drove stronger mix and productivity.
RS&I Growth and Product Launches
RS&I sales of $467.8M, up ~2.5% reported (1% organic + $6.4M FX) — the group's fifth consecutive quarter of growth — and launched the MT 2,600 diagnostic platform to support broader diagnostic penetration.
Financial Services Performance
Financial services operating earnings of $74.4M versus $66.7M prior year (+~11.6%); loan originations of $285.1M were stable year‑over‑year; average yields on finance receivables remained strong (~17.6%).
Prudent Outlook and Ongoing Investment
Management signaled continued investments in product, brand and software R&D; guidance items include expected 2026 capex ~ $100M and a full‑year effective tax rate of ~22–23%.
Negative Updates
Operating Income Margin Pressure at OpCo
Operating income before financial services was $265.2M, unchanged year‑over‑year, with an OpCo margin of 21.5%, down ~60 basis points from prior year due to unfavorable currency and increased investments.
C&I Margin Compression
C&I gross margin declined to 38.6% from 41.0% (-240 bps) and operating margin fell to 15.2% from 16.7% (-150 bps), driven by higher material costs and stronger sales in lower‑margin businesses.
RS&I Operating Margin Decline
RS&I operating margin decreased to 25.2% from 26.6% (-140 bps) as the group increased software development and brand investments despite revenue growth.
Tools Volume/Lumpiness and Subsegment Weakness
Tools group volume roughly flat (reported sales down 0.3%); diagnostic tools were reported down, tool storage remains weak year‑over‑year, and originations were nearly flat — reflecting technician uncertainty and lumpiness in larger‑ticket sales.
Macro & Regional Headwinds
Ongoing external challenges: tariff volatility, the prolonged U.S. government shutdown (impacted military/defense timing), continued China economic slowdowns, and effects from the Russia/Ukraine situation affecting Europe.
Working Capital and Receivables Pressure
Year‑end accounts receivable increased by $65.8M (including foreign currency effects); day sales outstanding rose to 67 days from 62 days; inventories increased by $81.8M year‑over‑year, indicating working capital build.
Cash Flow and Q4 Operating Cash Decline
Cash provided by operating activities was $268.1M in the quarter, down $25.4M versus prior year largely due to a $52.7M increase in cash paid for income taxes.
Company Guidance
Management's formal FY2026 guidance was limited but specific: corporate costs are expected to approximate $28.0 million, capital expenditures are forecast at about $100.0 million, and the full‑year effective income tax rate is anticipated to be in the 22%–23% range; they also noted remaining share‑repurchase authorization of roughly $260 million (after repurchasing 227,000 shares for $80.4 million in the year) and more than $900 million available under credit facilities with no borrowings outstanding—management did not provide sales or EPS targets on the call.Snap-on Financial Statement Overview
Summary
High-quality profitability (gross margin ~50%+, net margin ~18–20%) and conservative, improving leverage (debt-to-equity down to ~0.22) support a strong score. Offsetting factors are slower recent growth and choppy free cash flow trends that reduce near-term visibility.Income Statement
Revenue has expanded meaningfully over the period (about $3.6B in 2020 to $5.16B in 2025), while profitability remains a clear strength: gross margin is consistently ~50%+ and net margin is strong around ~18%–20% with EBIT margin near the high‑20s. The main weakness is growth momentum—2024 was essentially flat versus 2023 and 2025 growth is modest, with slight pressure in margins versus 2024.86
Very Positive
Balance Sheet
Leverage looks conservative and improving: debt-to-equity trends down from ~0.39 (2020) to ~0.22 (2025), supported by a steady rise in equity. Returns on equity are consistently solid (mid-to-high teens/around ~20% in several years), indicating efficient capital use. The key watch item is that returns have eased from the 2022–2023 peak levels into 2025.84
Very Positive
Cash Flow
Cash generation is generally strong: operating cash flow exceeds net income in 2023–2025 (roughly 1.18x–1.27x), and free cash flow tracks net income closely (~0.88–0.93x), signaling good earnings quality. However, free cash flow is somewhat choppy—down in 2021, down sharply in 2022, rebounding strongly in 2023, modestly up in 2024, and slightly down again in 2025—reducing visibility despite healthy absolute levels.78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.16B | 5.11B | 5.11B | 4.84B | 4.60B |
| Gross Profit | 2.67B | 2.65B | 2.62B | 2.45B | 2.38B |
| EBITDA | 1.48B | 1.52B | 1.48B | 1.35B | 1.24B |
| Net Income | 1.02B | 1.04B | 1.01B | 911.70M | 820.50M |
Balance Sheet | |||||
| Total Assets | 8.41B | 7.90B | 7.54B | 6.97B | 6.76B |
| Cash, Cash Equivalents and Short-Term Investments | 1.62B | 1.36B | 1.00B | 757.20M | 780.00M |
| Total Debt | 1.33B | 1.29B | 1.28B | 1.27B | 1.25B |
| Total Liabilities | 2.46B | 2.48B | 2.45B | 2.47B | 2.56B |
| Stockholders Equity | 5.93B | 5.39B | 5.07B | 4.48B | 4.18B |
Cash Flow | |||||
| Free Cash Flow | 1.01B | 1.13B | 1.06B | 591.00M | 896.50M |
| Operating Cash Flow | 1.08B | 1.22B | 1.15B | 675.20M | 966.60M |
| Investing Cash Flow | -73.10M | -204.10M | -331.80M | -206.20M | -290.40M |
| Financing Cash Flow | -749.90M | -649.80M | -572.90M | -485.00M | -818.80M |
Snap-on Technical Analysis
Positive
385.22
Price Trends
364.58
Positive
350.37
Positive
334.68
Positive
Market Momentum
6.35
Negative
63.07
Neutral
67.25
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 385.22 is above the 20-day moving average (MA) of 377.93, above the 50-day MA of 364.58, and above the 200-day MA of 334.68, indicating a bullish trend. The MACD of 6.35 indicates Negative momentum. The RSI at 63.07 is Neutral, neither overbought nor oversold. The STOCH value of 67.25 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $18.21B | 67.73 | 8.66% | ― | 8.27% | 19.06% | |
78 Outperform | $20.00B | 20.08 | 17.96% | 2.52% | 0.24% | -1.85% | |
72 Outperform | $15.73B | 30.81 | 37.22% | 1.22% | 3.27% | 10.89% | |
72 Outperform | $7.54B | 26.39 | 9.60% | 1.61% | -1.01% | -12.13% | |
65 Neutral | $3.07B | 28.19 | 8.70% | 2.74% | -2.63% | -4.46% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $13.41B | 32.68 | 4.52% | 4.42% | -1.40% | ― |
* Industrials Sector Average
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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.