Snap-On SNA
Snap-On is a manufacturer and distributor of hand and power tools, diagnostic equipment, and services for automotive workshops and industrial professionals, with a business model based on a franchise network and direct sales. Snap-On has excellent financial health (net cash, ND/EBITDA -0.24) and a 25.40% operating margin, but growth is moderate (revenue +4.2%) and valuation (P/E 18.84) offers no margin of safety. It's a quality defensive business, not a growth story.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Snap-On is a manufacturer and distributor of hand and power tools, diagnostic equipment, and services for automotive workshops and industrial professionals, with a business model based on a franchise network and direct sales. Snap-On has excellent financial health (net cash, ND/EBITDA -0.24) and a 25.40% operating margin, but growth is moderate (revenue +4.2%) and valuation (P/E 18.84) offers no margin of safety. It's a quality defensive business, not a growth story.
Score by category
| Category | Score |
|---|---|
| Financial health | 8.6 |
| Quality / Moat | 7.5 |
| Valuation | 6.1 |
| Growth | 5.4 |
| Dividend | 7.3 |
| Momentum | 6.3 |
| Risk & Context | 7.7 |
OVERALL SCORE: 7.1/10
Context and risks
Snap-On's business (tools and diagnostics for automotive) has no direct exposure to interest rates, commodities, or technology. Its demand is tied to the vehicle repair cycle, not the current macro context.
News considered in the analysis
- Snap-on's Gross Margin Expands: Can RCI Keep Driving Gains? — La expansión del margen bruto (51.83%) es un dato positivo, pero su sostenibilidad depende de la demanda de los talleres, que es cíclica.
- 3 Reasons SNA is Risky and 1 Stock to Buy Instead — Artículo de opinión que señala riesgos genéricos (ciclicidad, valoración) sin hechos nuevos; impacto moderado y parcialmente descontado.
- 1 Industrials Stock for Long-Term Investors and 2 We Brush Off — Listículo sin información nueva relevante para la valoración.
- 3 Cash-Heavy Stocks That Fall Short — Comparativa genérica sin datos específicos que afecten a SNA.
- Is Snap-on Stock Underperforming the Nasdaq? — Comparativa de rendimiento sin implicaciones fundamentales.
Verdict: Hold. Business quality and balance sheet justify the position, but moderate growth and fair valuation limit upside potential.
Main risk: Dependence on the auto repair cycle and discretionary spending by workshops, which could weaken in an economic recession.
Other Industrials companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →