One-glance verdict
Undervalued
$561.99 our estimate vs market $367.25
Wall Street consensus: $412.67 (-26.6% lower than our fair-value estimate)
35% below our estimate, below the bear case
Fundamentals snapshot
Snap-on Incorporated
SNA · NYQ · Industrials · Tools & Accessories
Current price
$367.25
52-week range
$320.80 - $423.02
Market cap
$19.00B
Balance sheet
Healthy
26.29x Strong cushion
Net cash $334.20M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 2.3% last year.
- Reward Returns 17.9% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 16.4% above its 5-year average P/E.
What this company does
Snap-on Incorporated
Snap-on sells professional-grade tools, diagnostic computers, and large repair equipment to auto mechanics and industrial workshops, often directly from its famous red vans. The company makes money not just from selling these premium products, but also by providing financing that helps mechanics afford them over time. This direct sales and financing model builds very loyal customers who often rely on Snap-on tools for their entire careers.
How the company got here
Snap-on was started in 1920 by a pair of coworkers in Milwaukee, Wisconsin, with an innovative idea for interchangeable sockets and wrench handles. Their slogan, "5 do the work of 50," highlighted how this new system made mechanics' jobs easier and more efficient. A key turning point was the creation of a mobile sales model, where dealers drove vans directly to auto repair shops to sell tools. This direct-to-customer approach, combined with a reputation for high-quality products, helped the company grow into a major global manufacturer of tools and equipment for professionals.
What it actually does
Snap-on makes and sells high-end tools and equipment for professional users, not typically for the casual do-it-yourself homeowner. Think of the tools used in an auto repair shop, an airplane hangar, or a manufacturing plant—that's Snap-on's main market. Their products include everything from wrenches and power tools to large tool storage chests and complex electronic diagnostic equipment used to find problems in modern cars. A big part of their business involves franchisees (independent business owners) who drive large vans loaded with tools directly to their customers' workplaces.
Snap-on Tools Group
This is the most well-known part of the company, centered around its famous mobile tool vans. Franchisees, who are independent business owners, buy inventory (the products they sell) from Snap-on and sell it to vehicle repair technicians on their specific routes. This segment makes money by selling a wide range of hand tools, power tools, and tool storage products to these franchisees. It's a significant part of the business, built on the personal relationships franchisees develop with mechanics and technicians at their workshops.
Commercial & Industrial Group
This division serves a wide range of professional customers outside of the typical auto repair shop. It sells tools and equipment directly to industries like aviation, military, manufacturing, and power generation, where high-precision and reliable tools are critical. Customers in this segment are large organizations and government bodies that need specialized tool and asset management solutions. This group provides a way for Snap-on to make money from important sectors beyond the automotive world.
Repair Systems & Information Group
This segment focuses on the high-tech side of vehicle repair, selling to independent repair shops and car dealerships. It provides electronic diagnostic tools (handheld computers that plug into a car to identify problems), repair information software, and heavy-duty shop equipment like wheel balancers and vehicle lifts. As cars become more complex and computer-driven, this part of the business has become very important, making money from both the sale of equipment and software subscriptions.
Financial Services
This part of the company acts like a bank for Snap-on's other businesses and customers. It provides financing (loans and leases) to franchisees to help them start and operate their mobile van businesses. It also offers installment payment plans to the mechanics and technicians who buy expensive tools and equipment from those franchisees. This makes it easier for customers to afford high-ticket items and helps support the sales of the other Snap-on groups.
What management is betting on now
Management is focused on several key areas for growth, which they call their "runways for growth." One major priority is expanding its business with the owners and managers of repair shops, not just the individual technicians. They are also pushing to sell more high-tech diagnostic equipment and software, as vehicles become more complex. Another key bet is extending their reach into "critical industries" like aerospace and military, which reduces their dependence on the auto repair market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$253.80M
FY2025 Q4
$275.40M
FY2026 Q1
$275.60M
FY2026 Q2
$217.50M
FY2026 Q3
$258.00M
FY2026 Q4
$254.60M
FY2027 Q1
$347.50M
FY2027 Q2
$248.40M
Revenue
$1.33B
Net income
$260.60M
Diluted EPS
4.96
Operating cash flow
$271.50M
Free cash flow
$248.40M
Fetching…
Sources
Revenue
$1.31B
Net income
$247.00M
Diluted EPS
4.69
Operating cash flow
$368.70M
Free cash flow
$347.50M
Fetching…
Sources
Revenue
$1.34B
Net income
$260.70M
Diluted EPS
4.94
Operating cash flow
$268.10M
Free cash flow
$254.60M
Fetching…
Sources
Revenue
$1.29B
Net income
$265.40M
Diluted EPS
5.02
Operating cash flow
$277.90M
Free cash flow
$258.00M
Fetching…
Sources
Revenue
$1.28B
Net income
$250.30M
Diluted EPS
4.72
Operating cash flow
$237.20M
Free cash flow
$217.50M
Fetching…
Sources
Revenue
$1.24B
Net income
$240.50M
Diluted EPS
4.51
Operating cash flow
$298.50M
Free cash flow
$275.60M
Fetching…
Sources
Revenue
$1.30B
Net income
$258.10M
Diluted EPS
4.83
Operating cash flow
$293.50M
Free cash flow
$275.40M
Fetching…
Sources
Revenue
$1.25B
Net income
$251.10M
Diluted EPS
4.70
Operating cash flow
$274.20M
Free cash flow
$253.80M
Fetching…
Sources
Is it cheap or expensive?
Fair value $561.99 vs current price $367.25
Wall Street consensus is the average analyst price target: $412.67 (-26.6% lower than our fair-value estimate).
Our most-likely fair value is $561.99 a share — about 53.0% above today's price of $367.25, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $334.2M - more cash than debt. Interest coverage 26.3x.
Net debt
$-334.20M
Interest coverage
26.29x
Snap-on Incorporated's profit covers its interest bill about 26.3 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
SNA
BASELINE
Snap-on Incorporated
Total debt $1.31B Interest coverage 26.29x This is the baseline the peer rows are being compared against.
Total debt $5.21B Interest coverage 2.43x -91% vs SNA Carries about 10.8x less debt cushion than SNA.
Total debt $9.69B Interest coverage 14.44x -45% vs SNA Carries about 1.8x less debt cushion than SNA.
Total debt $3.60B Interest coverage 5.98x -77% vs SNA Carries about 4.4x less debt cushion than SNA.
Total debt $2.80B Interest coverage 30.80x +17% vs SNA Carries about 1.2x more debt cushion than SNA.
Total debt $451.70M Interest coverage 267.05x +916% vs SNA Carries about 10.2x more debt cushion than SNA.
What you should know
The case for and against SNA
3 Rewards
1 Risk
Rewards
-
Revenue grew 2.3% last year.
-
Returns 17.9% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 16.4% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
18.72x
Forward P/E
17.12x
P/B
3.14x
P/S
3.60x
EV/EBITDA
13.20x
PEG ratio
1.88x
Profitability
How much profit each dollar creates
Gross margin
51.8%
Operating margin
25.4%
Net margin
19.6%
ROE
17.9%
ROA
9.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.22x
Current ratio
3.43x
Quick ratio
2.51x
Total debt
$1.31B
Total cash
$1.64B
Growth
How the business has been compounding
Revenue TTM
$5.27B
Revenue 5Y CAGR
2.9%
EPS TTM
19.62
EPS 5Y CAGR
4.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.19B
Free CF TTM
$1.01B
FCF margin
19.1%
Dividend
Shareholder payout
Yield
2.7%
Payout ratio
48.2%
Last ex-div date
2026-08-19