Snap-on (SNA)
Industrials · $19.3B market cap · SEC CIK 0000091440
ahead of 44% of the S&P 500 · #42 of 79 in Industrials
Next reports on Feb 3, 2027, after the close, with analysts expecting $4.89 in earnings per share.
52-week range $320.80 to $423.02. 12% below its 52-week high and 16% above its low.
The case for SNA
- Generated $1.0B of free cash flow in FY2025, 20% of revenue.
- Holds more cash ($1.6B) than long-term debt ($1.2B).
- Pays a 2.7% dividend while you wait.
- Return on equity of 17%.
- Moves less than the market (beta 0.75).
- Current assets cover the near-term bills 3.5 times over.
The case against
- Dividend takes 83% of earnings, leaving little cushion.
- Revenue grew only 2.9%, roughly the pace of inflation.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 52 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 24 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 70 |
| Momentumhow the price has behaved lately | 47 |
| Stabilityhow violently it moves, what it owes and what it pays you | 88 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +2.9% |
|---|---|
| Over 5 years | +2.3% a year |
| FY2025 revenue | $5.2B (+1%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $1.0B |
|---|---|
| Of revenue | 20% |
| Of profit | 99% |
Profit margins
Is profitability improving? No, slipping
| Gross margin | 52% |
|---|---|
| Operating margin | 25% |
| Net margin, FY24 → FY25 → now | 20.4% → 19.7% → 19.2% |
Debt vs. cash
Is the balance sheet healthy? Yes, more cash than debt
| Cash | $1.6B |
|---|---|
| Long-term debt | $1.2B |
| Net cash | $438M |
| Years to repay | 1.1 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 19.1× |
|---|---|
| Fair P/E for its growth | 17× |
| P/FCF | 19.2× |
| Forward P/E | 17.4× |
| EV / EBITDA | 13.0× |
At 19.1× earnings it trades close to the 17× that 3% a year of growth plus a 2.7% dividend would justify. At 19.2× free cash flow it trades close to that same mark.
The financials, five years deep
Pulled from Snap-on's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $5.2B | $5.1B | $5.1B | $4.8B | $4.6B |
| Change on the year | +1% | 0% | +5% | +5% | — |
| Free cash flow | |||||
| Free cash flow | $1.0B | $1.1B | $1.1B | $591M | $897M |
| Of revenue | 20% | 22% | 21% | 12% | 19% |
| Profit margins | |||||
| Operating margin | 25.8% | 26.3% | 25.7% | 24.9% | 24.4% |
| Net margin | 19.7% | 20.4% | 19.8% | 18.8% | 17.8% |
| Debt vs. cash | |||||
| Cash | $1.6B | $1.4B | $1.0B | $757M | $780M |
| Long-term debt | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B |
| Net cash (debt) | $438M | $175M | −$183M | −$427M | −$403M |
What Snap-on says it does
Snap-on is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks including those working in vehicle repair, aerospace, the military, natural resources, and manufacturing. From its founding in 1920, Snap-on has been recognized as the mark of the serious and the outward sign of the pride and dignity working men and women take in their professions. Products and services are sold through the company’s network of widely recognized franchisee vans as well as through direct and distributor channels, under a variety of notable brands. The company also provides financing programs to facilitate the sales of its products and to support its franchise business. Snap-on markets its products and brands worldwide in more than 130 countries. Snap-on’s largest geographic market is the United States. In addition, Snap-on has a…
Risk factors SNA lists in its 10-K
- The sales of many of our products are dependent on the health of the vehicle repair market and the changing requirements of vehicle repair
- The performance of Snap-on’s mobile tool distribution business depends on the success of its franchisees
- The inability to continue to introduce new products that respond to customer needs and achieve market acceptance could result in lower revenues and reduced profitability
- Failure to adequately protect intellectual property, or claims of infringement, could adversely affect our business, reputation, financial condition, results of operations and cash flows
- The global tool, equipment, diagnostics, and repair information industries are competitive
- Foreign operations are subject to political, economic, trade and other risks that could adversely affect our business, financial condition, results of operations and cash flows
- Risks associated with the disruption of manufacturing operations could adversely affect our profitability or competitive position
- Failure to maintain effective distribution of products and services could adversely impact revenue and profitability
- Failure to attract, develop, retain and effectively manage qualified personnel could lead to a loss of revenue and/or profitability
- We may not successfully integrate businesses we acquire, which could have an adverse impact on our business, financial condition, results of operations and cash flows
- The steps taken to restructure operations, rationalize operating footprint, lower operating expenses and achieve greater efficiencies in the supply chain could disrupt business
- Our inability to provide acceptable financing alternatives to franchisees and other end-user customers could adversely impact our operating results
- Exposure to credit risks of customers and resellers may make it difficult to collect receivables, and our allowances for credit losses for receivables may prove inadequate, which could adversely affec
- t our operating results and financial condition
- Foreign operations are subject to currency exchange, inflation, interest and other risks that could adversely affect our business, financial condition, results of operations and cash flows
- Failure to achieve expected investment returns on pension plan assets, as well as changes in interest rates or plan demographics, could adversely impact our results of operations, financial condition and cash flows
- The recognition of impairment charges on goodwill or other intangible assets could adversely impact our future financial condition and results of operations
- Adverse developments in the credit and financial markets could negatively impact the availability of credit that we and our customers need to operate our businesses
- Increasing our financial leverage could affect our operations and profitability
- Product liability claims and litigation could affect our business, reputation, financial condition, results of operations and cash flows
- Legal disputes could adversely affect our business, reputation, financial condition, results of operations and cash flows
- Our operations expose us to the risk of environmental liabilities, costs, litigation and violations that could adversely affect our financial condition, results of operations and reputation
- The inability to successfully defend claims from taxing authorities and changes in tax laws and rules could adversely affect our financial condition, results of operations and cash flows
- Economic conditions and world events could affect our operating results