Snap-on Inc

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SNA : NYSE : Industrial Goods
$154.77 up 1.5 | 1.0%
Today's Range: 152.49 - 155.68
Avg. Daily Volume: 598500.0
06/22/17 - 3:59 PM ET

Financial Analysis


SNAP-ON INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. SNAP-ON INC has average liquidity. Currently, the Quick Ratio is 1.34 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 9.16% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)963.9900.5
EBITDA ($mil)245.7223.4
EBIT ($mil)222.6202.4
Net Income ($mil)141.6128.3


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)123.0106.3
Total Assets ($mil)4877.84436.4
Total Debt ($mil)1022.6885.4
Equity ($mil)2747.72517.1


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin56.8655.81
EBITDA Margin25.4924.8
Operating Margin23.0922.48
Sales Turnover0.770.81
Return on Assets11.4711.19
Return on Equity20.3619.72
Debt Q1 FY17 Q1 FY16
Current Ratio2.032.2
Debt/Capital0.270.26
Interest Expense12.713.1
Interest Coverage17.5315.45


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)57.9558.14
Div / share0.710.61
EPS2.392.16
Book value / share47.4243.29
Institutional Own % n/a n/a
Avg Daily Volume601620.0446422.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 27.62 for the Machinery industry and a discount compared to the S&P 500 average of 25.76. To use another comparison, its price-to-book ratio of 3.23 indicates valuation on par with the S&P 500 average of 3.09 and a significant discount versus the industry average of 4.98. The current price-to-sales ratio is 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 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 16.23 Peers 27.62   SNA 14.15 Peers 16.00

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 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 13.88 Peers 21.85   SNA 1.74 Peers 1.28

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SNA 3.23 Peers 4.98   SNA 12.51 Peers 24.27

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 2.35 Peers 2.05   SNA 4.62 Peers 12.97

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 premium to 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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