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Snap-on Inc SNA

Morningstar Rating
$255.35 −1.54 (0.60%)
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Company Report

We See Near-Term Challenges Ahead for Snap-on but Remain Positive on Long-Term Prospects

Snap-on provides premium tools to vehicle repair shops and industrial customers. We believe it will continue to be the top player in the tool industry. The company benefits from a strong brand reputation among repair technicians. Customers value Snap-on’s high-quality and strong-performing products, in addition to its high-touch mobile van network. Snap-on’s tools and diagnostic products help customers complete repairs faster, improving productivity. We think customers will continue to pay up for Snap-on’s tool durability, convenience, and flexible financing options.

Price vs Fair Value

SNA is trading within a range we consider fairly valued.
Price
$255.35
Fair Value
$189.00
Uncertainty
Medium
1-Star Price
$919.46
5-Star Price
$117.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The growth in vehicle miles driven increases the wear and tear on vehicles, requiring more maintenance and repair work to keep them on the road and benefiting Snap-on.

Bears

The ease with which individuals can order products online could spur technicians to buy more tools from e-retailers. In addition, online reviews may help technicians close any knowledge gap as they’re comparing which products to buy online.

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News

Trading Information

Previous Close Price
$256.89
Day Range
$252.98255.60
52-Week Range
$249.84298.49
Bid/Ask
$254.27 / $255.93
Market Cap
$13.46 Bil
Volume/Avg
456,599 / 288,783

Key Statistics

Price/Earnings (Normalized)
13.41
Price/Sales
2.69
Dividend Yield (Trailing)
2.82%
Dividend Yield (Forward)
2.91%
Total Yield
5.13%

Company Profile

Snap-on manufactures premium tools and software for repair professionals. Hand tools are sold through a franchisee-operated mobile van network that serve auto technicians who purchase tools at their own expense. A unique element of its business model is that franchisees bear significant risk, as they must invest in the mobile van, inventory, and software. At the same time, franchisees extend personal credit directly to technicians on an individual tool basis. Snap-on currently operates three segments: repair systems and information, commercial and industrial, and tools. Its finance arm provides financing to franchisees to run their operations, which includes offering loans and leases for mobile vans.
Sector
Industrials
Industry
Tools & Accessories
Stock Style Box
Mid Core
Total Number of Employees
13,200

Competitors

Valuation

Metric
SNA
VNT
ITW
Price/Earnings (Normalized)
13.4113.1723.74
Price/Book Value
2.625.9823.04
Price/Sales
2.691.934.38
Price/Cash Flow
10.9411.3820.97
Price/Earnings
SNA
VNT
ITW

Financial Strength

Metric
SNA
VNT
ITW
Quick Ratio
2.701.070.87
Current Ratio
3.821.571.32
Interest Coverage
26.987.0715.16
Quick Ratio
SNA
VNT
ITW

Profitability

Metric
SNA
VNT
ITW
Return on Assets (Normalized)
14.70%9.36%19.93%
Return on Equity (Normalized)
22.20%50.26%102.28%
Return on Invested Capital (Normalized)
17.65%14.61%29.06%
Return on Assets
SNA
VNT
ITW
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