Demystifying Snap-on: Insights From 5 Analyst Reviews

During the last three months, 5 analysts shared their evaluations of Snap-on SNA, revealing diverse outlooks from bullish to bearish.

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.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $370.0, along with a high estimate of $400.00 and a low estimate of $350.00. This upward trend is evident, with the current average reflecting a 2.42% increase from the previous average price target of $361.25.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Snap-on among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Snap-on. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Snap-on compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Snap-on's stock. This examination reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Snap-on's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Snap-on analyst ratings.

Discovering Snap-on: A Closer Look

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: A Financial Overview

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Snap-on's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 0.18%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Snap-on's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 21.53% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Snap-on's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 4.75%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.26%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.24.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.