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Snap-on (SNA)
NYSE:SNA
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Snap-on (SNA) AI Stock Analysis

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SNA

Snap-on

(NYSE:SNA)

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Outperform 70 (OpenAI - Gpt-5.6Sol)
Rating:70Outperform
Price Target:
$406.00
â–²(3.61% Upside)
Action:Reiterated
Date:10/22/26
The score is primarily supported by strong financial quality—durable margins, high ROE, and conservative leverage—along with a reasonable valuation and dividend yield. Offsetting this, recent fundamentals and the latest call point to a near-term slowdown (organic sales/EPS declines, negative TTM revenue and FCF growth) and the chart setup is only neutral-to-weak with price below key moving averages and a negative MACD.
Positive Factors
Durable Profitability
Snap-on’s strong gross, EBIT, and net margins indicate meaningful pricing power, product value, and operating discipline in a manufacturing business. Margin resilience provides capacity to fund innovation, support customers, and absorb moderate demand volatility while preserving earnings quality.
Negative Factors
Tools Demand Contraction
The core Tools Group experienced a material sales and profit contraction, showing that channel conditions can significantly affect consolidated performance. Lower volume and margin reduce operating leverage and could weigh on earnings until franchisee inventories normalize and technician demand converts into purchases.
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Positive Factors
Negative Factors
Durable Profitability
Snap-on’s strong gross, EBIT, and net margins indicate meaningful pricing power, product value, and operating discipline in a manufacturing business. Margin resilience provides capacity to fund innovation, support customers, and absorb moderate demand volatility while preserving earnings quality.
Read all positive factors

Snap-on Key Performance Indicators (KPIs)

Any
Any
Operating Income by Segment
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.
Chart InsightsSnap‑on’s operating‑income mix is shifting: Snap‑On Tools peaked in mid‑2023 and has softened since, while Repair Systems & Information delivered steadier, higher growth into 2025 before modest normalization—pointing to a move toward software/services-driven profitability. Commercial & Industrial remains cyclical but has rebounded into 2026, and Financial Services is a stable, low‑volatility cushion. If Repair Systems’ momentum and margins persist, Snap‑on’s reliance on cyclical tool sales should decline; key risks are Tools’ recovery and sustaining RS&I growth.
Data provided by:The Fly

Snap-on (SNA) vs. SPDR S&P 500 ETF (SPY)

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.
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Q3-2026 Updates
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
Strong profitability and balance-sheet quality (TTM gross margin ~51%, net margin ~20%, low debt-to-equity ~0.21, ROE ~17–20%) support a solid fundamental base. The score is capped by weakening momentum: revenue has been flat for years with sharply negative TTM revenue growth, and free cash flow growth is materially negative with cash-flow coverage dipping below 1.0x.
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
71
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.07B5.16B5.11B5.11B4.84B4.60B
Gross Profit2.60B2.67B2.65B2.62B2.45B2.38B
EBITDA1.50B1.48B1.52B1.48B1.35B1.24B
Net Income1.03B1.02B1.04B1.01B911.70M820.50M
Balance Sheet
Total Assets8.64B8.41B7.90B7.54B6.97B6.76B
Cash, Cash Equivalents and Short-Term Investments1.64B1.62B1.36B1.00B757.20M780.00M
Total Debt1.28B1.33B1.29B1.28B1.27B1.25B
Total Liabilities2.57B2.46B2.48B2.45B2.47B2.56B
Stockholders Equity6.04B5.93B5.39B5.07B4.48B4.18B
Cash Flow
Free Cash Flow1.05B1.01B1.13B1.06B591.00M896.50M
Operating Cash Flow1.12B1.08B1.22B1.15B675.20M966.60M
Investing Cash Flow-218.80M-73.10M-204.10M-331.80M-206.20M-290.40M
Financing Cash Flow-837.20M-749.90M-649.80M-572.90M-485.00M-818.80M

Snap-on Technical Analysis

Technical Analysis Sentiment
Negative
Last Price391.86
Price Trends
50DMA
376.39
Negative
100DMA
386.97
Negative
200DMA
376.99
Negative
Market Momentum
MACD
-3.50
Negative
RSI
34.31
Neutral
STOCH
72.45
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 364.98, above the 50-day MA of 376.39, and above the 200-day MA of 376.99, indicating a bearish trend. The MACD of -3.50 indicates Negative momentum. The RSI at 34.31 is Neutral, neither overbought nor oversold. The STOCH value of 72.45 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$15.68B49.619.66%3.96%17.31%27.05%
72
Outperform
$7.85B30.998.13%1.24%5.45%-16.03%
70
Outperform
$18.95B18.5217.41%2.65%4.02%4.39%
69
Neutral
$14.21B23.396.90%3.49%0.57%29.85%
68
Neutral
$14.34B26.0537.21%1.20%9.14%12.52%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
$2.38B6.9324.79%2.57%19.82%272.31%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SNA
Snap-on
356.46
18.94
5.61%
KMT
Kennametal
29.59
7.39
33.27%
LECO
Lincoln Electric Holdings
256.98
17.76
7.42%
RBC
RBC Bearings
478.03
70.73
17.37%
SWK
Stanley Black & Decker
98.97
31.47
46.62%
TKR
Timken Company
108.40
31.74
41.39%
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.Date of analysis: Oct 22, 2026