Snap-on Inc

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SNA : NYSE : Industrial Goods
$151.52 up 0.71 | 0.47%
Today's Range: 149.55 - 151.58
Avg. Daily Volume: 750700.0
08/16/17 - 3:59 PM ET

Financial Analysis


SNAP-ON INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. SNAP-ON INC has average liquidity. Currently, the Quick Ratio is 1.22 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, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.50% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)999.1941.6
EBITDA ($mil)261.0238.5
EBIT ($mil)238.2216.8
Net Income ($mil)153.2140.1


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)89.0119.9
Total Assets ($mil)5067.14505.1
Total Debt ($mil)1105.8889.6
Equity ($mil)2854.92583.6


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin56.455.55
EBITDA Margin26.1225.32
Operating Margin23.8423.02
Sales Turnover0.760.81
Return on Assets11.311.46
Return on Equity20.0619.99
Debt Q2 FY17 Q2 FY16
Current Ratio1.892.17
Debt/Capital0.280.26
Interest Expense13.012.9
Interest Coverage18.3216.81


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)57.5858.08
Div / share0.710.61
EPS2.62.36
Book value / share49.5844.48
Institutional Own % n/a n/a
Avg Daily Volume746349.0517743.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 116.49 for the Machinery industry and a discount compared to the S&P 500 average of 24.31. To use another comparison, its price-to-book ratio of 3.08 indicates valuation on par with the S&P 500 average of 3.03 and a significant discount versus the industry average of 4.75. 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 15.78 Peers 116.49   SNA 14.89 Peers 17.49

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 13.79 Peers 21.08   SNA 1.53 Peers 1.18

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 3.08 Peers 4.75   SNA 11.00 Peers 15.15

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 2.00   SNA 5.30 Peers 6.56

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 trails its peers on the basis of sales growth

 

 

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