📊 SNA Key Takeaways
Is Snap-on Inc (SNA) a Good Investment?
Snap-on demonstrates exceptional profitability with 73.3% gross margins and robust free cash flow of $368.7M (28.2% FCF margin), underpinned by a fortress balance sheet with minimal debt (0.20x debt/equity) and strong liquidity ratios. However, net income declined 2.4% YoY despite 9.5% revenue growth, signaling margin compression that requires monitoring to ensure sustainability.
Snap-on shows high-quality fundamentals, with strong revenue growth, exceptional operating and net margins, and robust free cash flow generation. The balance sheet is conservative, with high liquidity, low leverage, and very strong interest coverage, which supports resilience. The main caution is that earnings and EPS declined despite higher revenue, suggesting some pressure on cost mix, operating leverage, or business mix quality.
Why Buy Snap-on Inc Stock? SNA Key Strengths
- Exceptional profitability margins (73.3% gross, 24.4% operating, 18.9% net) demonstrate strong pricing power and operational efficiency
- Robust free cash flow generation of $368.7M with 28.2% FCF margin indicating high-quality earnings conversion
- Fortress balance sheet with 0.20x debt/equity ratio, $1.8B cash, and exceptional liquidity (3.53x current ratio, 25.5x interest coverage)
- Strong profitability profile with 25.8% operating margin, 19.7% net margin, and double-digit ROE/ROA
- Excellent financial health driven by 4.79x current ratio, 3.68x quick ratio, and only 0.20x debt-to-equity
- Solid growth quality from 9.5% revenue growth backed by $1.08B of operating cash flow and a 21.0% FCF margin
SNA Stock Risks: Snap-on Inc Investment Risks
- Net income declined 2.4% YoY while revenue grew 9.5%, indicating margin compression and potential operational headwinds
- EPS down 1.6% despite revenue growth suggests profitability gains not translating to shareholder value creation
- Very low return on equity (4.1%) and ROA (2.9%) despite high absolute profitability indicates significant capital efficiency issues or structural overinvestment
- Net income and diluted EPS declined year over year even as revenue grew, indicating weaker earnings conversion
- Gross margin of 18.6% versus very high operating margin suggests mix complexity and warrants close monitoring of underlying segment profitability
- Industrial and tool demand can be cyclical, which could pressure sales and cash generation in a weaker macro environment
Key Metrics to Watch
- Gross and operating margin trends to assess sustainability of profitability compression
- Return on equity trajectory and capital allocation strategy effectiveness
- Operating cash flow growth relative to revenue growth to validate earnings quality
- Net income and EPS growth relative to revenue growth
- Operating cash flow and free cash flow margin consistency
Snap-on Inc (SNA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 28.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.53x current ratio provides a solid financial cushion.
SNA Profit Margin, ROE & Profitability Analysis
SNA vs Market Sector: How Snap-on Inc Compares
How Snap-on Inc compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Snap-on Inc Stock Overvalued? SNA Valuation Analysis 2026
Based on fundamental analysis, Snap-on Inc has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Snap-on Inc Balance Sheet: SNA Debt, Cash & Liquidity
SNA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Snap-on Inc's revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $18.76 reflects profitable operations.
SNA Revenue Growth, EPS Growth & YoY Performance
SNA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.1B | $240.5M | $4.51 |
| Q3 2025 | $1.1B | $251.1M | $4.70 |
| Q2 2025 | $1.2B | $250.3M | $4.72 |
| Q1 2025 | $1.1B | $240.5M | $4.51 |
| Q3 2024 | $1.1B | $243.1M | $4.51 |
| Q2 2024 | $1.2B | $264.0M | $4.89 |
| Q1 2024 | $1.2B | $248.7M | $4.60 |
| Q3 2023 | $1.1B | $223.9M | $4.14 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Snap-on Inc Dividends, Buybacks & Capital Allocation
SNA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Snap-on Inc (CIK: 0000091440)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SNA
What is the AI rating for SNA?
Snap-on Inc (SNA) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are SNA's key strengths?
Claude: Exceptional profitability margins (73.3% gross, 24.4% operating, 18.9% net) demonstrate strong pricing power and operational efficiency. Robust free cash flow generation of $368.7M with 28.2% FCF margin indicating high-quality earnings conversion. ChatGPT: Strong profitability profile with 25.8% operating margin, 19.7% net margin, and double-digit ROE/ROA. Excellent financial health driven by 4.79x current ratio, 3.68x quick ratio, and only 0.20x debt-to-equity.
What are the risks of investing in SNA?
Claude: Net income declined 2.4% YoY while revenue grew 9.5%, indicating margin compression and potential operational headwinds. EPS down 1.6% despite revenue growth suggests profitability gains not translating to shareholder value creation. ChatGPT: Net income and diluted EPS declined year over year even as revenue grew, indicating weaker earnings conversion. Gross margin of 18.6% versus very high operating margin suggests mix complexity and warrants close monitoring of underlying segment profitability.
What is SNA's revenue and growth?
Snap-on Inc reported revenue of $1.3B.
Does SNA pay dividends?
Snap-on Inc pays dividends, with $126.8M distributed to shareholders in the trailing twelve months.
Where can I find SNA SEC filings?
Official SEC filings for Snap-on Inc (CIK: 0000091440) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SNA's EPS?
Snap-on Inc has a diluted EPS of $4.69.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SNA a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Snap-on Inc has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is SNA stock overvalued or undervalued?
Valuation metrics for SNA: ROE of 4.1% (sector avg: 15%), net margin of 18.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy SNA stock in 2026?
Our dual AI analysis gives Snap-on Inc a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is SNA's free cash flow?
Snap-on Inc's operating cash flow is $368.7M, with capital expenditures of N/A. FCF margin is 28.2%.
How does SNA compare to other Market stocks?
Vs Default sector averages: Net margin 18.9% (avg: 12%), ROE 4.1% (avg: 15%), current ratio 3.53 (avg: 1.8).