Snap On Story

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SNA -- USA Stock  

USD 141.09  0.17  0.12%

Snap On Earnings before Tax are projected to increase significantly based on the last few years of reporting. The past year's Earnings before Tax were at 711.63 Million. The current year Average Equity is expected to grow to about 2.5 B, whereas Net Income Per Employee is forecasted to decline to about 38.5 K. Despite somewhat strong basic indicators, Snap On is not utilizing all of its potentials. The latest stock price disturbance, may contribute to a short-term swings for the investors. We currently estimate Snap On as fairly valued. The real value is approaching 141.93 per share.
Published over a month ago
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Does Snap On (NYSE:SNA) has strong basic indicators based on the current build up?
Macroaxis provides recommendation on Snap On Incorporated to complement and cross-verify current analyst consensus on Snap On Incorporated. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Snap On income statement, its balance sheet, and the statement of cash flows. Potential Snap On investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Snap On investors may use each financial statement separately, they are all related. The changes in Snap On's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Snap On's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Snap On fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Snap On performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Snap On shares is the value that is considered the true value of the share. If the intrinsic value Snap On is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Snap On. Please read more on our fundamental analysis page.

What is Snap On Asset Breakdown?

Snap On Incorporated reports assets on its Balance Sheet. It represents the amount of Snap On resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Snap On volatility, please check the breakdown of all its fundamentals

Are Snap On Earnings Expected to grow?

The future earnings power of Snap On involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Snap On factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Snap On stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Snap On expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Snap On earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Snap On dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Snap On one year expected dividend income is about $2.71 per share.
Snap On Dividend Yield is projected to slightly decrease based on the last few years of reporting. The past year's Dividend Yield was at 0.0172. The current year Dividends per Basic Common Share is expected to grow to 2.47, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (183 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-169.6 M-183 M
Dividend Yield 0.0172  0.0227 
Dividends per Basic Common Share 2.29  2.47 
Investing in dividend-paying stocks, such as Snap On Incorporated is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Snap On must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Snap On. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Snap On, but it might be worth checking our own buy vs. sell analysis

Snap On Gross Profit

Snap On Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Snap On previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Snap On Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Snap On exotic insider transaction detected

Legal trades by Snap On insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Snap On insider trading alert for general transaction of deferred stock units by Nicholas Pinchuk, Chairman President and CEO, on 11th of August 2020. This event was filed by Snapon Inc with SEC on 2020-08-11. Statement of changes in beneficial ownership - SEC Form 4. Nicholas Pinchuk currently serves as chairman of the board, president, chief executive officer of Snap On Incorporated [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Snap On Indicators

There are few distinct groups of Snap On stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Snap On is distributed among investors.

Ownership Allocation

Snap On Incorporated shows a total of fifty-four million three hundred fifty thousand outstanding shares. The majority of Snap On Incorporated outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Snap On to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Snap On Incorporated. Please pay attention to any change in the institutional holdings of Snap On Incorporated as this could imply that something significant has changed or about to change at the company. Also note that roughly one million six hundred thirty thousand five hundred invesors are currently shorting Snap On expressing very little confidence in its future performance.

Institutions
101.41%
Retail Investors-2.77
Insiders1.36
Institutions101.41
 2016 2020 (projected)
Consolidated Income559.6 M543.4 M
Direct Expenses1.8 B1.76 B

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Snap On has an asset utilization ratio of 92.36 percent. This suggests that the company is making $0.92 for each dollar of assets. An increasing asset utilization means that Snap On Incorporated is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
1.9 B
Assets Non Current
2.1 B
Current Assets1.92 Billion38.77
Assets Non Current2.08 Billion41.94
Goodwill866.65 Million17.5
Tax Assets88.45 Million1.79

Snap On has a small chance to finish above $148 in 2 months

Snap On total risk alpha is up to 0.0. Snap On Incorporated currently demonstrates below-verage downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.05. However, we do advice investors to further question Snap On Incorporated expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Snap On

Whereas some firms within the tools & accessories industry are still a little expensive, even after the recent corrections, Snap On may offer a potential longer-term growth to investors. To summarize, as of the 31st of July 2020, our up-to-date 30 days buy-hold-sell recommendation on the company is Hold. We believe Snap On is fairly valued with low probability of bankruptcy for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Snap On Incorporated. Please refer to our Terms of Use for any information regarding our disclosure principles.

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