Snap-on Incorporated [NYSE:SNA]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Snap-on Incorporated [SNA], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give SNA an Outperform rating. Its stock price has been found in the range of 16.69 to 41.57. This is compared to its latest closing price of $155.24.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Snap-on Incorporated [SNA] is sitting at 2.00. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Dec-18 Snap-on Incorporated [SNA] generated $0.95 billion in sales. That’s 1.68% lower than the average estimate of $0.97 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Thu 18 Apr (In 64 Days).
Fundamental Analysis of Snap-on Incorporated [SNA]
Now let’s turn to look at profitability: with a current Operating Margin for Snap-on Incorporated [SNA] sitting at +23.49 and its Gross Margin at +51.59, this company’s Net Margin is now 14.80%. These measurements indicate that Snap-on Incorporated [SNA] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 22.69, and its Return on Invested Capital has reached 15.40%. Its Return on Equity is 22.47, and its Return on Assets is 12.80. These metrics all suggest that Snap-on Incorporated is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Snap-on Incorporated [SNA] has generated a Total Debt to Total Equity ratio of 36.54. Similarly, its Total Debt to Total Capital is 26.76, while its Total Debt to Total Assets stands at 21.07. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 30.53, and its Long-Term Debt to Total Capital is 22.36. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 9.06 and its Total Debt to EBITDA Value is 1.08. The Enterprise Value to Sales for this firm is now 2.34, and its Total Debt to Enterprise Value stands at 0.12.
Similarly, this company’s Receivables Turnover is 3.15 and its Total Asset Turnover is 0.77. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.62 and its Current Ratio is 2.33. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Snap-on Incorporated [SNA] has 55.19M shares outstanding, amounting to a total market cap of $8.59B. Its stock price has been found in the range of 135.29 to 189.46. At its current price, it has moved by -17.84% from its 52-week high, and it has moved 15.06% from its 52-week low.
This stock’s Beta value is currently 1.30, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 43.85. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Snap-on Incorporated [SNA] a Reliable Buy?
Shares of Snap-on Incorporated [SNA], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.