Peeling Back The Layers: Exploring Snap-on Through Analyst Insights

5 analysts have shared their evaluations of Snap-on SNA during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $327.6, a high estimate of $350.00, and a low estimate of $280.00. This current average reflects an increase of 6.99% from the previous average price target of $306.20.

Exploring Analyst Ratings: An In-Depth Overview

The analysis of recent analyst actions sheds light on the perception of Snap-on by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Snap-on. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Snap-on compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Snap-on's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Snap-on's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Snap-on analyst ratings.

About Snap-on

Snap-on manufactures premium tools and software for repair professionals. Hand tools are sold through a franchisee-operated mobile van network that serve auto technicians who purchase tools at their own expense. A unique element of its business model is that franchisees bear significant risk, as they must invest in the mobile van, inventory, and software. At the same time, franchisees extend personal credit directly to technicians on an individual tool basis. Snap-on currently operates three segments: repair systems and information, commercial and industrial, and tools. Its finance arm provides financing to franchisees to run their operations, which includes offering loans and leases for mobile vans.

Snap-on: Financial Performance Dissected

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Negative Revenue Trend: Examining Snap-on's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -1.06% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 21.89%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Snap-on's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 4.67%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Snap-on's ROA excels beyond industry benchmarks, reaching 3.2%. This signifies efficient management of assets and strong financial health.

Debt Management: Snap-on's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.23.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.