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Snap-on
(NYSE:SNA)
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Rating:71Outperform
Price Target:
$394.00
â–²(0.55% Upside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by strong profitability and a conservative balance sheet, partly offset by a meaningful TTM revenue contraction and weakening cash-flow momentum. Technicals remain bearish (below key moving averages with negative MACD), while valuation and dividend support are moderately favorable. The latest earnings call reinforced margin resilience and strength in Commercial & Industrial, but near-term turbulence in Tools/RS&I and slightly weaker credit trends keep the outlook mixed.
Positive Factors
Sustained profitability
Consistently high gross and net margins indicate meaningful pricing power, operating discipline, and a differentiated professional-product offering. Margin resilience should help Snap-on continue funding innovation, customer support, and shareholder returns even while revenue growth remains uneven.
Negative Factors
Tools Group contraction
The Tools Group remains a major operating segment, so its sales and margin decline can materially pressure consolidated earnings. Franchisee inventory reductions have disrupted channel demand, and recovery depends on destocking ending and professional purchases translating into renewed van orders.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained profitability
Consistently high gross and net margins indicate meaningful pricing power, operating discipline, and a differentiated professional-product offering. Margin resilience should help Snap-on continue funding innovation, customer support, and shareholder returns even while revenue growth remains uneven.
Read all positive factors
Snap-on Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals the profitability of each business unit, highlighting which segments drive earnings and where the company may need to improve efficiency or cut costs.
Reveals the profitability of each business unit, highlighting which segments drive earnings and where the company may need to improve efficiency or cut costs.
Data provided by:
The Fly
The FlySnap-on (SNA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.42B
Dividend Yield2.73%
Average Volume (3M)331.28K
Price to Earnings (P/E)18.3
Beta (1Y)0.66
Revenue Growth2.93%
EPS Growth0.65%
CountryUS
Employees13,000
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)19.53
Shares Outstanding51,581,234
10 Day Avg. Volume390,747
30 Day Avg. Volume331,284
Financial Highlights & Ratios
PEG Ratio-10.81
Price to Book (P/B)3.08
Price to Sales (P/S)3.55
P/FCF Ratio18.18
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue3.75
Enterprise Value/Gross Profit7.32
Enterprise Value/Ebitda13.01
Forecast
1Y Price Target
$415.50Price Target Upside6.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)19.36
Revenue Forecast (FY)$4.90B
Snap-on Business Overview & Revenue Model
Company Description
Snap-on Incorporated, a global provider based in Kenosha, Wisconsin, specializes in the production and distribution of an extensive range of tools, equipment, diagnostic systems, and repair information solutions for professional users worldwide. T...
How the Company Makes Money
Snap-on makes money primarily by selling tools, tool storage, equipment, diagnostics, and related services through several distinct distribution and operating channels. A major revenue stream comes from its franchisee-based mobile van network (oft...
Snap-on Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Neutral
The call presented a mixed outlook. Snap-on demonstrated strong momentum in Commercial & Industrial, resilient gross margins, continued product innovation, and stable underlying technician demand. However, consolidated organic sales and earnings declined, the Tools Group was materially affected by diesel-driven franchisee destocking, RS&I faced lower OEM program activity, and loan originations and delinquency metrics weakened modestly. Management remained confident in the company's markets and continued to invest, but the current-quarter performance reflected meaningful operating turbulence.Positive Updates
Commercial & Industrial Reached Record Performance
Commercial & Industrial sales were $404 million, up 7.4% organically excluding $10 million from the High-Force acquisition, and represented an all-time high. Operating income rose to $74.7 million from $57.5 million, an increase of $17.3 million or 29.9%, while operating margin increased 290 basis points to a record 18.5%.
Negative Updates
Organic Sales Declined and Consolidated Earnings Fell
Third-quarter sales were $1.1837 billion, representing a 0.6% reported increase but a 2.8% organic decline excluding currency and acquisitions. Operating income before Financial Services was $248 million versus $279 million last year, and operating margin was 21% versus 23.4% reported last year. Excluding the prior-year legal settlement, operating margin was down 50 basis points.
Read all updates
Q3-2026 Updates
Positive
Negative
Commercial & Industrial Reached Record Performance
Commercial & Industrial sales were $404 million, up 7.4% organically excluding $10 million from the High-Force acquisition, and represented an all-time high. Operating income rose to $74.7 million from $57.5 million, an increase of $17.3 million or 29.9%, while operating margin increased 290 basis points to a record 18.5%.
Read all positive updates
Company Guidance
For the remainder of 2026, Snap-on expects capital expenditures for the year will be approximately $100 million and currently anticipates that its full year 2026 effective income tax rate to approximate 22%; 2026 will return to a 52-week fiscal year with 13 weeks in the fourth quarter, while management said it does not give guidance and would not comment on October. Management said the diesel wave appears to have flattened, the principal markets are fundamentally strong, and it believes it has a continuing opportunity to progress; for RS&I, management said it would expect activity to improve somewhat but that the business is in a flatter period, with visibility kinda limited.Snap-on Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.06B | 5.16B | 5.11B | 5.11B | 4.84B | 4.60B |
| Gross Profit | 2.60B | 2.67B | 2.65B | 2.62B | 2.45B | 2.38B |
| EBITDA | 1.46B | 1.48B | 1.52B | 1.48B | 1.35B | 1.24B |
| Net Income | 1.01B | 1.02B | 1.04B | 1.01B | 911.70M | 820.50M |
Balance Sheet | ||||||
| Total Assets | 8.66B | 8.41B | 7.90B | 7.54B | 6.97B | 6.76B |
| Cash, Cash Equivalents and Short-Term Investments | 1.67B | 1.62B | 1.36B | 1.00B | 757.20M | 780.00M |
| Total Debt | 1.28B | 1.33B | 1.29B | 1.28B | 1.27B | 1.25B |
| Total Liabilities | 2.54B | 2.46B | 2.48B | 2.45B | 2.47B | 2.56B |
| Stockholders Equity | 6.09B | 5.93B | 5.39B | 5.07B | 4.48B | 4.18B |
Cash Flow | ||||||
| Free Cash Flow | 1.01B | 1.01B | 1.13B | 1.06B | 591.00M | 896.50M |
| Operating Cash Flow | 1.09B | 1.08B | 1.22B | 1.15B | 675.20M | 966.60M |
| Investing Cash Flow | -216.10M | -73.10M | -204.10M | -331.80M | -206.20M | -290.40M |
| Financing Cash Flow | -861.60M | -749.90M | -649.80M | -572.90M | -485.00M | -818.80M |
Snap-on Technical Analysis
Negative
391.86
Price Trends
375.48
Negative
386.84
Negative
377.05
Negative
Market Momentum
-3.83
Negative
35.27
Neutral
71.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNA, the sentiment is Negative. The current price of 391.86 is above the 20-day moving average (MA) of 364.37, above the 50-day MA of 375.48, and above the 200-day MA of 377.05, indicating a bearish trend. The MACD of -3.83 indicates Negative momentum. The RSI at 35.27 is Neutral, neither overbought nor oversold. The STOCH value of 71.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNA.
Snap-on Risk Analysis
Snap-on disclosed 26 risk factors in its most recent earnings report. Snap-on reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Snap-on Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $14.94B | 46.41 | 9.66% | 3.96% | 17.31% | 27.05% | |
72 Outperform | $7.58B | 29.47 | 8.13% | 1.30% | 5.45% | -16.03% | |
71 Outperform | $18.42B | 18.28 | 16.84% | 2.73% | 2.93% | 0.65% | |
69 Neutral | $14.99B | 24.32 | 6.90% | 3.36% | 0.57% | 29.85% | |
68 Neutral | $13.95B | 25.34 | 37.21% | 1.23% | 9.14% | 12.52% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $2.25B | 6.56 | 24.79% | 2.72% | 19.82% | 272.31% |
* Industrials Sector Average
SNA
Snap-on
357.02
19.90
5.90%
KMT
Kennametal
29.46
7.24
32.57%
LECO
Lincoln Electric Holdings
255.96
16.88
7.06%
RBC
RBC Bearings
471.98
60.90
14.81%
SWK
Stanley Black & Decker
99.24
30.13
43.59%
TKR
Timken Company
109.33
33.07
43.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.