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Snap-on Inc
SNA : NYSE : Industrial Goods
$138.13 -3.20 | -2.30%
Today's Range: 135.91 - 140.65
Avg. Daily Volume: 513,900
02/11/16 - 3:59 PM ET

Financial Analysis


SNAP-ON INC's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. SNAP-ON INC has strong liquidity. Currently, the Quick Ratio is 1.77 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 9.28% 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 Q4 FY15 Q4 FY14
Net Sales ($mil)914.8916.8
EBITDA ($mil)228.7209.0
EBIT ($mil)207.3188.5
Net Income ($mil)131.4116.2


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)92.8132.9
Total Assets ($mil)4486.94310.1
Total Debt ($mil)880.1945.1
Equity ($mil)2412.72207.8


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin54.3153.69
EBITDA Margin25.022.79
Operating Margin22.6620.56
Sales Turnover0.80.81
Return on Assets10.669.78
Return on Equity19.8419.1
Debt Q4 FY15 Q4 FY14
Current Ratio2.832.59
Debt/Capital0.270.3
Interest Expense13.013.8
Interest Coverage15.9513.66


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)58.0758.11
Div / share0.610.53
EPS2.221.97
Book value / share41.5537.99
Institutional Own % n/a n/a
Avg Daily Volume495392.0419281.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 17.77 for the Machinery industry and a discount compared to the S&P 500 average of 20.44. For additional comparison, its price-to-book ratio of 3.26 indicates a premium versus the S&P 500 average of 2.43 and a premium versus the industry average of 3.16. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SNA 16.72 Peers 17.77   SNA 15.84 Peers 10.89

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 13.53 Peers 15.87   SNA 1.52 Peers 3.52

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

SNA is trading at a valuation on par with 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 3.26 Peers 3.16   SNA 13.28 Peers -14.35

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

SNA is trading at a valuation on par with 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 2.19 Peers 1.32   SNA 2.87 Peers -5.87

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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