Snap-on (SNA)
NYSEIndustrialsManufacturing - Tools & AccessoriesSnapshot 2026-09-04
$383.00-0.31%
Close 2026-09-04 · 1-day change
NYSEIndustrialsManufacturing - Tools & AccessoriesSnapshot 2026-09-04
Warn: Primary pillar under pressure — Operating margin near 22%: 25.8% vs 22%.
Snap-on grows revenue about 5% a year, driven by strong tool sales. Profit margins stay near 22%. The company invests about $100 million annually in capital spending. M&A deals like Diesel Laptops boost growth and market position.
Revenue growth slows below 0% as demand weakens. Profit margins fall below 20%. Capital spending cuts limit future growth. M&A fails to deliver expected benefits.
The market prices in about -1% revenue growth and values Snap-on slightly above our fair value near $382. Our fair value is below the Street median, reflecting cautious growth expectations. We see modest upside if growth and margins hold steady.
Breaks if: CAPEX falls below $90 million in FY26
Breaks if: M&A fails to add revenue or causes integration issues
Breaks if: Operating margin falls below 20% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on maintaining steady growth. The current thesis state is intact, but it faces challenges from sector dynamics and recent performance variability.
The valuation suggests SNA is considered cheap compared to its peers, with a low expectations gap. The market appears to have priced in a justified valuation, reflecting a cautious outlook on future performance.
Fundamentals are likely to show mixed results, with organic sales growth tracking positively but recent earnings performance being inconsistent. The management's focus on maintaining capital expenditures and effective tax rates is on target, but the overall financial performance remains neutral.
The thesis hinges on the performance of sector bellwethers like RBC, LECO, and SWK. Positive earnings and guidance from these companies could support SNA, while any negative shifts could pose risks.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read. However, there are concerns about future guidance. Analysts expect diluted EPS to rise 2.4% year-over-year to $19.70. The consensus rating from 11 analysts is a "Moderate Buy.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 3% in FY26
In the next 1-3 years, SNA's performance will depend on both internal execution and external sector conditions. Not investment advice.