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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:
$396.00
▲(9.59% Upside)
Snap-on's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical indicators suggest bullish momentum, though caution is advised due to potential overbought conditions. Valuation is fair, supporting the overall positive 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 (SNA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.96B
Dividend Yield2.52%
Average Volume (3M)248.09K
Price to Earnings (P/E)19.5
Beta (1Y)0.77
Revenue Growth0.24%
EPS Growth-1.85%
CountryUS
Employees13,000
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)5.02
Shares Outstanding52,007,557
10 Day Avg. Volume260,987
30 Day Avg. Volume248,095
Financial Highlights & Ratios
PEG Ratio4.47
Price to Book (P/B)3.35
Price to Sales (P/S)3.54
P/FCF Ratio15.94
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue3.74
Enterprise Value/Gross Profit7.23
Enterprise Value/Ebitda12.90
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)20.4
Revenue Forecast (FY)$4.93B
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:Oct 16, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements such as record sales and strong performance in several segments, particularly RS and I. However, there were some challenges, including a decline in financial services earnings and continued weakness in tool storage. Overall, the positive aspects, including strong sales growth and improved operating margins, outweighed the negative aspects.Q3-2025 Updates
Positive Updates
Record Third Quarter Sales
Sales reached $1,190,800,000, up 3.8% from last year, with organic sales increasing by 3%.
Strong Performance in RS and I Segment
RS and I sales grew by 10%, with an organic improvement of 8.9%, driven by high activity with OEM dealerships and increased sales of diagnostics and repair information products.
Sequential Growth and Momentum
Sales were up sequentially over the second quarter results, demonstrating ongoing momentum against normal seasonality.
Highest Ever EPS for a Third Quarter
EPS reached $5.02, or $4.71 excluding a one-time legal benefit, overcoming a $0.09 impact from higher pension amortization costs.
Improved Operating Margin in Tools Group
The Tools Group's operating margin was 21.7%, up 10 basis points from last year.
Negative Updates
Decline in Financial Services Operating Earnings
Operating earnings for financial services were $68,900,000, down from $71,700,000 last year.
Weakness in Asia Pacific Business
The C and I segment experienced an organic sales decrease of 0.8%, primarily due to reductions in the Asia Pacific business.
Continued Challenges in Tool Storage
Tool storage sales were weak, contributing to a decline in extended credit originations by 4.9%.
Company Guidance
During Snap-on Incorporated's third-quarter earnings call for fiscal year 2025, the company reported a 3.8% increase in sales to $1,190.8 million, with organic sales rising by 3% excluding favorable foreign currency impacts. The operating income margin was highlighted at 23.4%, or 21.5% excluding a legal settlement benefit, marking it as one of the strongest third quarters despite challenges. Earnings per share reached $5.02, or $4.71 when excluding the legal benefit, the highest ever for a third quarter. The Tools Group showed a 1% organic sales increase, while the Repair Systems & Information (RS&I) Group achieved an 8.9% organic sales gain. Financial services reported an operating income of $68.9 million, slightly down from the previous year. The company noted resilience in the auto repair market, with increasing complexity and a rising average vehicle age of 12.8 years. Overall, Snap-on expressed confidence in its strategy and market position amidst global economic uncertainties.Snap-on Financial Statement Overview
Summary
Snap-on demonstrates strong profitability with high margins, a healthy balance sheet with low leverage, and robust cash flow generation. The financial stability and efficient cash management are key strengths, although revenue growth is moderate.Income Statement
Snap-on has demonstrated strong profitability with a consistent gross profit margin above 51% and a net profit margin around 20% in recent periods. The company has maintained stable EBIT and EBITDA margins, indicating operational efficiency. Revenue growth has been modest but positive, reflecting steady demand in its industry.85
Very Positive
Balance Sheet
The balance sheet shows a healthy financial position with a low debt-to-equity ratio around 0.22, suggesting conservative leverage. Return on equity is robust at approximately 18%, indicating effective use of equity capital. The equity ratio is solid, reflecting a strong asset base supported by equity.78
Positive
Cash Flow
Snap-on's cash flow performance is strong, with a high free cash flow to net income ratio close to 93%, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is above 1, showing good cash conversion. Free cash flow growth has been positive, supporting future investments and shareholder returns.80
Positive
| 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
Positive
361.36
Price Trends
347.72
Positive
341.26
Positive
328.26
Positive
Market Momentum
5.86
Negative
69.88
Neutral
90.42
Negative
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 361.36 is above the 20-day moving average (MA) of 357.89, above the 50-day MA of 347.72, and above the 200-day MA of 328.26, indicating a bullish trend. The MACD of 5.86 indicates Negative momentum. The RSI at 69.88 is Neutral, neither overbought nor oversold. The STOCH value of 90.42 is Negative, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $18.96B | 19.48 | 17.96% | 2.52% | 0.24% | -1.85% | |
77 Outperform | $13.92B | 27.77 | 38.11% | 1.22% | 3.27% | 10.89% | |
77 Outperform | $15.66B | 61.62 | 8.54% | ― | 8.27% | 19.06% | |
76 Outperform | $6.31B | 22.21 | 9.80% | 1.61% | -1.01% | -12.13% | |
67 Neutral | $12.51B | 28.90 | 4.92% | 4.42% | -1.40% | ― | |
66 Neutral | $2.56B | 28.19 | 7.36% | 2.74% | -2.63% | -4.46% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* 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.