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Snap-on (SNA)
NYSE:SNA
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Snap-on (SNA) AI Stock Analysis

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SNA

Snap-on

(NYSE:SNA)

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Outperform 78 (OpenAI - 5.2)
Rating:78Outperform
Price Target:
$437.00
▲(14.92% Upside)
Action:ReiteratedDate:05/02/26
The score is driven primarily by strong financial quality (durable margins, solid free cash flow, and manageable leverage). Technicals add support via an established uptrend with neutral momentum, while valuation is reasonable with a supportive dividend but not deeply discounted. The latest earnings call was net positive (record sales and EPS growth), though cost headwinds and cautious demand commentary limit upside.
Positive Factors
Durable high margins
Snap-on’s sustained gross margins around 51–52% and net margins near 19–20% indicate structural pricing power, premium product mix and cost management. These durable margins support cash generation, buffer cyclical revenue swings, and underpin long‑term return on invested capital.
Negative Factors
Tariff, material and FX pressure
Persistent tariffs, rising input costs and adverse FX (40–60 bps headwind noted) erode margin upside from volume and productivity. If these structural cost pressures persist, they can compress operating leverage and require sustained price actions or margin recapture programs.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable high margins
Snap-on’s sustained gross margins around 51–52% and net margins near 19–20% indicate structural pricing power, premium product mix and cost management. These durable margins support cash generation, buffer cyclical revenue swings, and underpin long‑term return on invested capital.
Read all positive factors

Snap-on (SNA) vs. SPDR S&P 500 ETF (SPY)

Snap-on Business Overview & Revenue Model

Company Description
Snap-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 & In...
How the Company Makes Money
Snap-on makes money primarily by selling professional tools and repair solutions and by earning financing-related income that supports those sales. (1) Product sales: The largest revenue driver is the sale of hand tools, power tools, tool storage,...

Snap-on Key Performance Indicators (KPIs)

Any
Any
Operating Margin by Segment
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.
Chart InsightsSnap-on's operating margins reveal contrasting trends across segments. Financial Services and C&I segments face pressure, with declines linked to credit loss provisions and geopolitical uncertainties, respectively. In contrast, the RSNI segment shows resilience, benefiting from strong diagnostics and repair information sales. The Tools Group's strategic pivot to faster payback items supports its margin stability. Despite a challenging macro environment, Snap-on's focus on operational efficiencies and innovative product launches, like the Triton diagnostic unit, positions it well for future growth, although foreign currency and tariff impacts remain concerns.
Data provided by:The Fly

Snap-on Earnings Call Summary

Earnings Call Date:Apr 23, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive performance: record first-quarter sales, organic growth, EPS improvement, strong C&I revenue expansion and notable margin and operating income gains in the Tools Group. Management emphasized successful product launches, strategic investments in AI and proprietary data, and a strong balance sheet with active capital return. Offsetting these positives were persistent macro pressures — unfavorable FX, tariffs and higher material costs — which compressed margins in parts of the business, along with softer diagnostics/OEM activity and modest weakness in Financial Services. Overall, highlights outweigh the lowlights, but management remains cautious about ongoing uncertainty and technician reticence.
Positive Updates
Record First-Quarter Sales and Organic Growth
Consolidated sales of $1.2072 billion, up 5.8% as reported and up 3.4% organically — the highest first-quarter sales ever and the second-highest quarterly sales in company history.
Negative Updates
Currency Headwinds Pressuring Margins
Unfavorable foreign currency impacts of roughly 40–60 basis points across corporate and segments reduced operating margins and diluted some benefits from volume and RCI savings.
Read all updates
Q1-2026 Updates
Negative
Record First-Quarter Sales and Organic Growth
Consolidated sales of $1.2072 billion, up 5.8% as reported and up 3.4% organically — the highest first-quarter sales ever and the second-highest quarterly sales in company history.
Read all positive updates
Company Guidance
Guidance items called out on the call: management expects corporate costs of about $28 million per quarter, capital expenditures of roughly $100 million for 2026, and a full‑year effective tax rate of 22–23% (noting 2025 EPS included a $0.31 nonrecurring RS&I benefit). On capital allocation, Q1 dividends were $126.8 million and the company repurchased 267,000 shares for $99.9 million, leaving $234.1 million available under the current buyback authorization; cash on hand was $1.753 billion with more than $900 million undrawn on the credit facility. Financial Services metrics: $101.1 million revenue and $68.0 million operating earnings in Q1, $2.5 billion gross financing receivables ($2.1B U.S.), U.S. 60+‑day delinquency of 1.9% (down 10 bps YoY, 20 bps QoQ), trailing 12‑month net losses of $72.9 million (3.75% of outstandings), Q1 originations of $264.6 million (‑1%), and average yields of 17.6% on finance receivables and 9.1% on contract receivables.

Snap-on Financial Statement Overview

Summary
Strong overall fundamentals supported by durable profitability (gross margin ~51–52%, net margin ~19–20%) and solid free cash flow generation (TTM FCF ~$1.08B). Balance sheet leverage is conservative (debt-to-equity ~0.22–0.30) with healthy returns on equity, but recent revenue softness/TTM decline and volatile cash-flow growth temper the score.
Income Statement
82
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
80
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.12B5.16B5.11B5.11B4.84B4.60B
Gross Profit2.63B2.67B2.65B2.62B2.45B2.38B
EBITDA1.47B1.48B1.52B1.48B1.35B1.24B
Net Income1.02B1.02B1.04B1.01B911.70M820.50M
Balance Sheet
Total Assets8.52B8.41B7.90B7.54B6.97B6.76B
Cash, Cash Equivalents and Short-Term Investments1.75B1.62B1.36B1.00B757.20M780.00M
Total Debt1.20B1.33B1.29B1.28B1.27B1.25B
Total Liabilities2.53B2.46B2.48B2.45B2.47B2.56B
Stockholders Equity5.96B5.93B5.39B5.07B4.48B4.18B
Cash Flow
Free Cash Flow1.08B1.01B1.13B1.06B591.00M896.50M
Operating Cash Flow1.15B1.08B1.22B1.15B675.20M966.60M
Investing Cash Flow-69.70M-73.10M-204.10M-331.80M-206.20M-290.40M
Financing Cash Flow-767.40M-749.90M-649.80M-572.90M-485.00M-818.80M

Snap-on Technical Analysis

Technical Analysis Sentiment
Positive
Last Price380.27
Price Trends
50DMA
373.22
Positive
100DMA
362.85
Positive
200DMA
344.69
Positive
Market Momentum
MACD
1.72
Negative
RSI
57.45
Neutral
STOCH
40.80
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 380.27 is above the 20-day moving average (MA) of 368.77, above the 50-day MA of 373.22, and above the 200-day MA of 344.69, indicating a bullish trend. The MACD of 1.72 indicates Negative momentum. The RSI at 57.45 is Neutral, neither overbought nor oversold. The STOCH value of 40.80 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$19.70B53.368.53%11.06%16.37%
78
Outperform
$20.01B19.2017.48%2.52%2.99%1.23%
76
Outperform
$8.35B16.529.35%1.61%0.19%-17.71%
73
Outperform
$3.30B11.828.61%2.74%0.36%17.62%
70
Outperform
$15.06B25.0337.29%1.22%7.72%19.51%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
$12.60B43.694.20%4.42%-0.06%3.45%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SNA
Snap-on
386.32
80.00
26.12%
KMT
Kennametal
43.27
24.13
126.02%
LECO
Lincoln Electric Holdings
274.89
95.81
53.50%
RBC
RBC Bearings
623.19
280.99
82.11%
SWK
Stanley Black & Decker
81.03
24.80
44.10%
TKR
Timken Company
119.70
54.71
84.17%

Snap-on Corporate Events

Executive/Board ChangesShareholder Meetings
Snap-on Shareholders Back Board, Pay and Auditor Slate
Positive
May 1, 2026
On April 30, 2026, Snap-on shareholders held the company’s 2026 annual meeting, where they elected 10 directors, including Chairman and CEO Nicholas T. Pinchuk, to one-year terms ending at the 2027 annual meeting. The voting results showed s...
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.Date of analysis: May 02, 2026