Snap-On Stock Analysis, Valuation (NYSE:SNA)
Investors can watch the Amigobulls Snap-On stock analysis video here. Our analyst opinion covering the buy and sell arguments for SNA stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Snap-on Incorporated Stock Rating 3.6/5
Amigobulls SNA stock analysis takes into account various financial ratios like relative valuation, Snap-On revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Snap-On dividend performance. Snap-On valuation forms a crucial part of our stock analysis. Snap-On stock rating is our opinion about the business fundamentals of the company.
Should you buy SNA stock?
- The TTM operating margin was good at 23.94 for Snap-On.
- Net margins stood at a healthy 15.5% (average) for Snap-On in the Trailing Twelve Months.
- With its debt/equity ratio of 0.44, Snap-On has a lower debt burden when compared to the Consumer Discretionary average.
- The Snap-On stock currently trades at a price to earnings ratio of 16.5, compared to the sector average of 22.9. We rate this as a positive.
- Snap-On's return on invested capital of 14.8 is good.
- The LTM ROE of 19.8 for Snap-On is attractive.
- The company has a healthy free cash flow margin of 22.9.
Should you sell SNA stock?
- Revenue growth of 4.9 has been weak over the last 5 years.
- The company is trading at a price to sales multiple of 2.6, which is higher in comparison to the Consumer Discretionary sector average of 1.6, making SNA stock expensive.
Amigobulls Snap-On stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.
Snap-On revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Snap-On stock.