Snap-on (SNA) AI Stock Analysis

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Snap-on

(NYSE:SNA)

Select Model

Outperform 78 (OpenAI - 4o)

Rating:78Outperform

Price Target:

$378.00

▲(11.34% Upside)

Snap-on's overall stock score reflects strong financial health and reasonable valuation, supported by solid technical indicators. The mixed sentiment from the earnings call highlights both growth opportunities and challenges, particularly in international markets.

Positive Factors

Strong Cash Flow Management

Strong cash flow management ensures Snap-on can fund operations and strategic initiatives, providing a buffer against economic fluctuations and supporting long-term growth.

Introduction of New Products

The introduction of new products like the Triton diagnostics platform enhances Snap-on's competitive edge and market position, driving future revenue growth and customer engagement.

Resilience in Automotive Repair Markets

Resilience in automotive repair markets underscores Snap-on's strong market position and ability to capitalize on industry demand, supporting sustained revenue streams.

Negative Factors

C&I Group Sales Decline

Declining sales in the C&I segment due to international disruptions could hinder overall growth, highlighting vulnerabilities in global market exposure.

Decrease in Operating Income

A decrease in operating income reflects rising costs and operational inefficiencies, which may pressure margins and limit reinvestment capabilities.

Challenges in International Markets

Geopolitical and economic uncertainties in international markets pose risks to Snap-on's global operations, potentially affecting revenue and strategic expansion plans.

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

Market Cap

$17.29B

Dividend Yield2.52%

Average Volume (3M)240.18K

Price to Earnings (P/E)17.8

Beta (1Y)0.80

Revenue Growth-0.76%

EPS Growth-2.62%

CountryUS

Employees13,000

SectorIndustrials

Sector Strength72

IndustryManufacturing - Tools & Accessories

Share Statistics

EPS (TTM)4.72

Shares Outstanding52,163,372

10 Day Avg. Volume276,023

30 Day Avg. Volume240,176

Financial Highlights & Ratios

PEG Ratio4.47

Price to Book (P/B)3.35

Price to Sales (P/S)3.84

P/FCF Ratio15.94

Enterprise Value/Market Cap0.95

Enterprise Value/Revenue3.22

Enterprise Value/Gross Profit6.21

Enterprise Value/Ebitda11.18

Forecast

1Y Price Target

$345.33

Price Target Upside1.72% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

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 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

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:

Main Street Data

Snap-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 low leverage and impressive return on equity, positioning it well for future growth despite a slight revenue decline.

Income Statement

Very Positive

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

Positive

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

Very Positive

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	5.07B	5.11B	5.11B	4.84B	4.60B	3.59B
Gross Profit	2.63B	2.65B	2.62B	2.45B	2.38B	1.75B
EBITDA	1.46B	1.52B	1.48B	1.35B	1.24B	985.90M
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

Technical Analysis Sentiment

Positive

Last Price339.49

Price Trends

50DMA

325.09

Positive

100DMA

319.91

Positive

200DMA

326.59

Positive

Market Momentum

MACD

3.19

Negative

RSI

61.19

Neutral

STOCH

65.41

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 339.49 is above the 20-day moving average (MA) of 329.12, above the 50-day MA of 325.09, and above the 200-day MA of 326.59, indicating a bullish trend. The MACD of 3.19 indicates Negative momentum. The RSI at 61.19 is Neutral, neither overbought nor oversold. The STOCH value of 65.41 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
SNA	78 Outperform	$17.29B	17.80	18.18%	2.52%	-0.76%	-2.62%
LECO	78 Outperform	12.93B	26.35	36.45%	1.23%	0.24%	0.05%
RBC	73 Outperform	11.99B	48.39	8.13%	―	5.48%	16.88%
TKR	72 Outperform	5.37B	17.54	9.47%	1.75%	-2.01%	-9.95%
SWK	69 Neutral	12.10B	24.79	4.45%	4.15%	-2.71%	0.00%
KMT	63 Neutral	1.57B	17.26	7.25%	3.76%	-3.91%	-12.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

SNA

Snap-on

339.49

63.43

22.98%

KMT

Kennametal

21.28

-3.56

-14.33%

LECO

Lincoln Electric Holdings

239.76

57.11

31.27%

RBC

RBC Bearings

379.98

84.53

28.61%

SWK

Stanley Black & Decker

79.37

-23.05

-22.51%

TKR

Timken Company

79.09

-2.01

-2.48%

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: Sep 12, 2025