Snap-On Stock Analysis, Valuation (NYSE:SNA)

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$160.88 $0.3 (0.19%) SNA stock closing price Feb 16, 2018 (Closing)
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Snap-On
Updated on : Feb 16, 2018
previous close
SNA 160.9 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Tools-Hand Held
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q4
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
23.9%
Sector Average:
11%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.19B
Debt/Equity Ratio:
 0.4
Compared to the industry
Cash Flow
Operating cash flow:
$193.5M
Net Income:
$129.5M
Dividend Yield
SNA dividend yield:
1.83%
PROS      CONS
Operating Margins
Net Margins
Low Debt Burden
ROIC
ROE
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SNA PS :
2.5
Industry PS :
1.7
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
14.6%
Return on Equity:
19.7%
Free Cash Flow Margin:
17.3%
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Snap-On Stock Analysis

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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 3.5/5

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 2017 Q4 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 23.9% for Snap-On.
  • Net margins stood at a healthy 15.1% (average) for Snap-On in the Trailing Twelve Months.
  • Snap-On has a lower debt burden than its peers in the Consumer Discretionary sector, with a debt/equity ratio of  0.4.
  • The price to earnings multiple of 15.9 is attractive when compared with the industry average PE ratio of 22.8.
  • Snap-On has an attractive ROIC (Return on Invested Capital) of 14.6%
  • The LTM ROE of 19.7% for Snap-On is attractive.
  • Snap-On has a healthy FCF (Free Cash Flow) margin of 17.3%.

Should you sell SNA stock?

  • The company is trading at a price to sales multiple of 2.5, which is overvalued in comparison to the Tools-Hand Held industry average multiple of 1.7.

Comments on this video and Snap-On stock

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.