Snap-on Incorporated (SNA) AI Stock Analysis

Snap-on Incorporated is a global manufacturer and distributor of tools, equipment, diagnostics, and systems solutions for professional users. Headquartered in Kenosha, Wisconsin, and founded in 1920, the company operates across four segments: Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services. Its product lineup features hand tools such as wrenches, sockets, and screwdrivers, power tools spanning cordless, pneumatic, and hydraulic variants, and storage units including tool chests and roll cabinets. Snap-on also delivers diagnostic devices, repair information software, business management systems, training programs, and customer financing.

Between FY2021 and FY2025, Snap-on grew revenue from $4.60B to $5.16B, producing a 5-year revenue CAGR of 7.5% from FY2020 to FY2025. Annual revenue growth moderated from 28.1% in FY2021 and 5.2% in FY2022 to 0.0% in FY2024 and 0.9% in FY2025. Gross margin remained steady, registering 51.8% in FY2021, 50.5% in FY2022, 51.3% in FY2023, 52.0% in FY2024, and 51.7% in FY2025. Operating margin was 25.8% in FY2025, supporting net income of $1.02B and EPS of $19.19. Over the trailing twelve months, revenue reached $5.27B with a net profit margin of 19.6% and EPS of $19.62. In the quarter ended June 30, 2026, revenue increased 4.2% year-over-year and earnings increased 5.1%.

As of June 30, 2026, Snap-on reported $1.64B in cash and short-term investments and $1.28B in total debt, creating a net cash position of $365.4M. Shareholders' equity was $6.04B, with a debt-to-equity ratio of 0.21 and a current ratio of 3.43. During FY2025, the company generated $1.08B in operating cash flow and $1.01B in free cash flow. Capital allocation in FY2025 comprised $76.0M in capital expenditures, $328.6M in share buybacks, and $462.2M in dividends paid, contributing to a 5-year share count reduction of 3.5%.

Snap-on trades at a trailing P/E of 18.7x and a forward P/E of 17.3x, both lower than the median of its S&P 500 Industrials peers at 28.5x and 20.7x, respectively. Its EV to EBITDA ratio of 12.7x is below the peer median of 17.7x, while its price-to-sales ratio of 3.6x sits above the peer median of 3.1x. Over the past year, the stock returned 9.6%, trailing the 16.8% return for the S&P 500 (SPY). Over five years, Snap-on returned 91.0%, exceeding the S&P 500 return of 83.0%.

Snap-on pays a quarterly dividend with an annual forward dividend of $9.76 per share, providing a 2.66% dividend yield and a 49.8% payout ratio. The company has paid dividends for 42 consecutive years and generated a 5-year annualized dividend growth rate of 14.7%. Its most recent ex-dividend date was August 19, 2026.

Wall Street analysts hold 2 Strong Buy, 3 Buy, 5 Hold, 1 Sell, and 0 Strong Sell ratings on Snap-on. The mean price target is $412.67, indicating a 12.4% premium over the last close of $367.25. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $4.94B and EPS of $19.77. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 22, 2026.

This page is an AI-written research summary of Snap-on Incorporated (SNA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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