Snap-on Inc (SNA) stock analysis

P/E above its 5-year median

Snap-on's P/E of 19.5 is above its own 5-year median of 15.5.

P/E below the industry

Snap-on's P/E of 19.5 is below the Cutlery, Handtools, and General Hardware median of 21.2.

EV/EBITDA above its 5-year median

Snap-on's EV/EBITDA of 14.2 is above its 5-year median of 12.1.

P/B above the industry

Snap-on's price-to-book of 3.17 is above the Cutlery, Handtools, and General Hardware median of 2.07.

Trading above fair value

The share price of $374.75 is above our fair value estimate of $324.96.

Margin of safety under 20%

The price is 15.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 2.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 4.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -0.3% over the last twelve months, against a 5-year average of 10.2% a year.

Growing slower than the industry

Revenue grew 2.9% over the last twelve months; the Cutlery, Handtools, and General Hardware median is 4.3%.

Guidance lowered

Snap-on lowered its full-year 2026 effective income tax rate outlook on Jul 23, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 17.0% over the last twelve months and averaged 20.1% over five years.

Return on capital over 10%

Return on invested capital was 19.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Snap-on's return on equity of 17.0% is above the Cutlery, Handtools, and General Hardware median of 13.6%.

Earnings grew over 5 years

Net income grew 10.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 19.2% over the last twelve months, against a 5-year average of 19.3%.

Net margin above the industry

Snap-on's net margin of 19.2% is above the Cutlery, Handtools, and General Hardware median of 5.5%.

Low debt

Debt is 14.6% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 37.9% five years ago to 14.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 130% of total debt.

Interest well covered

Operating income covers interest expense 25.9 times.

Short-term assets cover short-term debts

Current assets are 3.54 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.50; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Snap-on paid dividends worth 2.6% of the share price over the last twelve months.

Yield below Treasuries

The 2.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Snap-on yields 2.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 50.0% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.