Snap-on (SNA) AI Stock Analysis

• Market Cap: $17.61B
• Dividend Yield: 2.54%
• Average Volume (3M): 382.44K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.86
• 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: 418,167
• 30 Day Avg. Volume: 382,444
• 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: 4.68
• Enterprise Value/Gross Profit: 8.99
• Enterprise Value/Ebitda: 16.32
• 1Y Price Target: $376.25
• Price Target Upside: 11.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: $374.00 ▲(10.45% 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 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 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 2019	Dec 2018
Income Statement
Total Revenue	3.82B	5.11B	5.11B	4.84B	3.73B	3.74B
Gross Profit	1.99B	2.65B	2.62B	2.45B	1.84B	1.87B
EBITDA	1.10B	1.52B	1.48B	1.35B	1.06B	1.06B
Net Income	756.20M	1.04B	1.01B	911.70M	693.50M	679.90M
Balance Sheet
Total Assets	8.36B	7.90B	7.54B	6.97B	5.69B	5.37B
Cash, Cash Equivalents and Short-Term Investments	1.53B	1.36B	1.00B	757.20M	184.50M	140.90M
Total Debt	1.27B	1.29B	1.28B	1.27B	1.21B	1.13B
Total Liabilities	2.51B	2.48B	2.45B	2.47B	2.26B	2.25B
Stockholders Equity	5.82B	5.39B	5.07B	4.48B	3.41B	3.10B
Cash Flow
Free Cash Flow	751.10M	1.13B	1.06B	591.00M	575.20M	673.60M
Operating Cash Flow	813.60M	1.22B	1.15B	675.20M	674.60M	764.50M
Investing Cash Flow	-99.00M	-204.10M	-331.80M	-206.20M	-222.10M	-210.20M
Financing Cash Flow	-545.40M	-649.80M	-572.90M	-485.00M	-409.40M	-502.20M

Snap-on Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 338.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNA, the sentiment is Neutral. The current price of 338.61 is below the 20-day moving average (MA) of 339.68, above the 50-day MA of 335.90, and above the 200-day MA of 326.51, indicating a neutral trend. The MACD of 1.50 indicates Positive momentum. The RSI at 49.20 is Neutral, neither overbought nor oversold. The STOCH value of 22.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNA.

Snap-on Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBC	―	$12.83B	51.12	8.56%	―	5.48%	16.88%
TKR	―	$5.48B	18.74	9.80%	1.74%	-1.01%	-12.13%
LECO	―	$13.03B	26.37	37.35%	1.27%	0.24%	0.05%
SNA	―	$17.61B	17.67	17.96%	2.54%	0.24%	-1.85%
KMT	―	$1.70B	19.16	7.35%	3.49%	-3.91%	-12.49%
SWK	―	$10.62B	22.18	5.38%	4.80%	-2.71%	―
Sector *	―	$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.