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SNA:NYSESnap-On Incorporated Analysis

Data as of 2026-05-22 - not real-time

$362.31

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

Snap‑On remains financially resilient with solid operating margins above 20% and a free cash flow conversion exceeding $1 billion, supporting a sustainable dividend payout of roughly 48% of earnings. Valuation metrics show a price‑to‑earnings multiple in the high teens, markedly lower than the tools industry average near 30×, while a discounted‑cash‑flow model suggests a fair value modestly below the current market price. Technical signals are mixed: the stock trades above its 20‑ and 50‑day moving averages, indicating a bullish trend, yet the MACD has turned bearish and volume is slipping, tempering short‑term upside. Recent news highlights a missed revenue beat in Q1 and the strategic acquisition of Hi‑Force, which should broaden the hydraulic‑tools franchise and offset the near‑term sales dip. Overall, the combination of strong cash generation, a disciplined payout policy, and a modest upside/downside profile points to a cautiously optimistic outlook.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Bearish MACD histogram and decreasing volume signal limited near‑term momentum
  • Price remains above key support levels, reducing downside risk
  • Quarterly revenue miss introduces short‑term earnings uncertainty

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • Strategic acquisition of Hi‑Force expands product mix and market reach
  • Fundamentals show robust margins, strong cash flow and a healthy balance sheet
  • Valuation remains attractive relative to industry peers with room for price appreciation

Long Term

> 3 years
Positive
Model confidence: 8/10

Key Factors

  • Consistent dividend yield and sustainable payout ratio support income‑focused investors
  • Low beta and solid ROE indicate durable competitive advantage and defensive characteristics
  • Long‑term growth prospects from global tool demand and continued innovation

Key Metrics & Analysis

Financial Health

Revenue Growth5.20%
Profit Margin19.60%
P/E Ratio18.7
ROE18.20%
ROA9.92%
Debt/Equity21.73
P/B Ratio3.2
Op. Cash Flow$1.2B
Free Cash Flow$1.0B
Industry P/E29.5

Technical Analysis

TrendBullish
RSI42.8
Support$355.52
Resistance$392.80
MA 20$372.30
MA 50$371.13
MA 200$354.17
MACDBearish
VolumeDecreasing
Fear & Greed Index91.45

Valuation

Fair Value$337.82
Target Price$389.81
Upside/Downside7.59%
GradeFair
TypeBlend
Dividend Yield2.69%

Risk Assessment

Beta0.72
Volatility27.35%
Sector RiskMedium
Reg. RiskLow
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.