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Snap-on Inc
SNA : NYSE : Industrial Goods
$157.41 up1.99 | 1.28%
Today's Range: 155.61 - 158.27
Avg. Daily Volume: 387,900
09/03/15 - 4:00 PM ET

Financial Analysis


SNAP-ON INC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. SNAP-ON INC has strong liquidity. Currently, the Quick Ratio is 1.59 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.91% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)910.5878.2
EBITDA ($mil)212.8194.0
EBIT ($mil)192.2174.3
Net Income ($mil)120.0106.1


Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)124.6115.8
Total Assets ($mil)4390.74228.3
Total Debt ($mil)922.4907.8
Equity ($mil)2298.52255.4


Profitability Q2 FY15 Q2 FY14
Gross Profit Margin54.7353.86
EBITDA Margin23.3722.09
Operating Margin21.1119.85
Sales Turnover0.810.79
Return on Assets10.259.01
Return on Equity19.5916.89
Debt Q2 FY15 Q2 FY14
Current Ratio2.572.6
Debt/Capital0.290.29
Interest Expense12.912.7
Interest Coverage14.913.72


Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)58.158.11
Div / share0.530.44
EPS2.031.8
Book value / share39.5638.81
Institutional Own % n/a n/a
Avg Daily Volume374550.0319452.0

Valuation


BUY. The current P/E ratio indicates a premium compared to an average of 20.46 for the Machinery industry and a value on par with the S&P 500 average of 20.03. For additional comparison, its price-to-book ratio of 4.05 indicates a premium versus the S&P 500 average of 2.67 and a premium versus the industry average of 3.46. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SNAP-ON INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SNA 20.98 Peers 20.46   SNA 21.95 Peers 13.47

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

SNA is trading at a valuation on par with its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SNA is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SNA 17.54 Peers 17.01   SNA 1.67 Peers 4.83

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

SNA is trading at a premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SNA trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SNA 4.05 Peers 3.46   SNA 18.29 Peers 2.37

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SNA is trading at a premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

SNA is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SNA 2.60 Peers 1.52   SNA 6.34 Peers 0.38

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SNA is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

SNA has a sales growth rate that significantly exceeds its peers.

 

 

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