Snap-On Inc.

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SNA : NYSE : Consumer Durables
$160.88 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 594100.0
02/16/18 - 4:00 PM ET

Financial Analysis


SNAP-ON INC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. SNAP-ON INC has average liquidity. Currently, the Quick Ratio is 1.15 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 12.86% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1054.5964.0
EBITDA ($mil)266.8249.4
EBIT ($mil)243.0227.7
Net Income ($mil)129.5146.3


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)92.077.6
Total Assets ($mil)5249.14723.2
Total Debt ($mil)1186.81028.9
Equity ($mil)2953.92617.2


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin53.9656.0
EBITDA Margin25.325.87
Operating Margin23.0423.62
Sales Turnover0.760.79
Return on Assets10.6211.56
Return on Equity18.8820.87
Debt Q4 FY17 Q4 FY16
Current Ratio1.781.9
Debt/Capital0.290.28
Interest Expense13.613.1
Interest Coverage17.8717.38


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)57.0157.95
Div / share0.820.71
EPS2.242.47
Book value / share51.8245.16
Institutional Own % n/a n/a
Avg Daily Volume612334.0643343.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 81.54 for the Machinery industry and a discount compared to the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 3.11 indicates valuation on par with the S&P 500 average of 3.26 and a significant discount versus the industry average of 5.71. The current price-to-sales ratio is similar to the S&P 500 average, but it is above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, SNAP-ON INC proves to trade at a discount 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 16.93 Peers 81.54   SNA 15.10 Peers 20.81

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SNA is trading at a significant discount to its peers.

 

Discount. 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 discount 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 12.92 Peers 19.76   SNA 0.80 Peers 1.69

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SNA is trading at a significant discount 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 3.11 Peers 5.71   SNA 3.36 Peers 192.95

Discount. 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 significant discount to its peers.

 

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

However, SNA is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SNA 2.30 Peers 2.24   SNA 7.77 Peers 11.16

Average. 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 valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SNA significantly trails its peers on the basis of sales growth

 

 

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