Start here if you're new
what it is
Snap-on sells tools, diagnostics, shop gear, and financing to professional repair shops and technicians.
how it gets paid
Last year Snap-On made $4.7B in revenue. Snap-on Tools Group was the main engine at $1.93B, or 41% of sales.
why it's growing
Revenue grew 0.7% last year. All told, we have upped our estimate for the recently completed year by $0.40 a share, to $19.20, and we are maintaining our 2026 earnings.
what just happened
Snap-on's last reported quarter came in at $4.94 EPS, a 1-cent miss versus the $4.95 consensus.
At a glance
A balance sheet — strong enough to weather a downturn
90/100 earnings predictability — you can trust these numbers
18.2x trailing p/e — priced about right
2.8% dividend yield — cash in your pocket every quarter
18.5% return on capital — nothing to write home about
xvary composite: 80/100 — above average
What they do
Snap-on sells tools, diagnostics, shop gear, and financing to professional repair shops and technicians.
This business wins because your mechanic does not shop for a diagnostic platform the way you shop for socks. Snap-on sells the box, the software, and often the financing, which keeps customers inside the system. Return on capital was 18.5% in, which means return on capital → profit on money invested → this company turns installed relationships into cash better than many industrial peers.
How they make money
$4.7B
annual revenue · their business grew +0.7% last year
Snap-on Tools Group
$1.93B
+0.7%
Repair Systems & Information Group
$1.52B
+2.8%
Commercial & Industrial Group
$0.93B
0.0%
Financial Services
$0.32B
0.0%
The products that matter
professional hand tools and equipment
Tools
$4.7B company context
this is still the center of gravity in a $4.7B business. The tools carry the brand and route relationships, and that pricing power shows up in a 21.5% net margin.
core demand
repair diagnostics and information systems
Repair Systems & Information
+10% q3 sales growth
this was the standout in the recent quarter, with sales up 10%. In a company that grew 0.7% last year, that is where you look for the next leg of growth.
growth pocket
customer financing support
Financial Services
supports a $4.7B model
the snapshot does not break out segment revenue here, and that thin disclosure matters. Financing helps move tool purchases across the business, but it also adds credit risk you need to price alongside the 2.8% dividend and 18.2x multiple.
double-edged
Key numbers
26.0%
operating margin
Operating margin → profit after running the business → so what: Snap-on keeps about $0.26 from every $1 of sales before interest and taxes.
18.5%
return on capital
Return on capital → profit earned on money invested → so what: this is a high-quality industrial business, not a commodity wrench seller.
18.2x
trailing p/e
P/E → price compared with last year's earnings → so what: you are paying a quality premium, but not a fantasy multiple.
2.8%
dividend yield
Dividend yield → cash paid to you each year as a share of price → so what: you get paid while waiting for mid-single-digit growth.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 90 / 100
- long-term debt $1.2B (6% of capital)
- net profit margin 21.9% — keeps 22 cents of every dollar in revenue
- return on equity 22% — $0.22 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in SNA 3 years ago → it's now worth $16,800.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
Snap-on's last reported quarter came in at $4.94 EPS, a 1-cent miss versus the $4.95 consensus.
The quiet part out loud: this is still a quality business, but growth has cooled. TTM revenue was $4.7B, up just 0.7% vs. prior year, and a February 2026 earnings-call summary said Q4 operating margin slipped to 21.5%.
$4.7B
revenue
$4.94
eps
21.5%
operating margin
the number that mattered
The number that mattered was the 1-cent EPS miss, because a stock at 18.2x earnings gets less room for error when sales are growing only 0.7%.
-
snap-on’s third-quarter performance seemed better than we had anticipated.
-
to wit, the company posted adjusted earnings of $5.02 a share, well above our estimate and the year-ago figure, on a better-than-expected 3.7% uptick in sales, the result of a 3.0% organic sales gain and $9.0 million of favorable foreign-currency translation.in addition, the bottom line reaped the rewards of a $0.31-a-share after-tax benefit from a legal settlement.
-
so on an apple-to-apple basis, september-interim earnings were flat vs. prior year.
-
and the most significant contribution to the top-line growth came from the repair systems & information group, which reported a solid 10% jump in sales during the third quarter.
-
all told, we have upped our estimate for the recently completed year by $0.40 a share, to $19.20, and we are maintaining our 2026 earnings call of $20.20 a share, on a 5% top-line advance.
source: company earnings report, 2026
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What could go wrong
the #1 risk is repair and tool demand failing to accelerate enough to reach the roughly $5B 2026 revenue setup.
med
growth reacceleration risk
Last year revenue grew just 0.7%. The current setup asks for roughly $5B in 2026 revenue and $20.20 in EPS. That is a higher bar than the recent trend line.
If sales stay closer to $4.7B than $5B, paying 18.2x earnings gets harder to defend.
med
one-time benefit distortion
The latest quarter included a $0.31 per-share after-tax legal-settlement benefit. That helped push adjusted EPS to $5.02, but it is not recurring operating strength.
If you strip out temporary help and earnings stay around the 2025 level of $19.20, the stock looks more like a steady holder than a compounder worth a rerating.
med
financial services credit risk
Financing helps close purchases across the business, but it also adds customer credit exposure. The snapshot does not break out segment revenue here, so the exact size is thin even though the risk is real.
Credit deterioration would pressure more than financing income. It can slow tool demand across a $4.7B company.
If revenue growth stays closer to 0.7% than the projected move toward $5B and one-off benefits fade, the path from $19.20 to $20.20 EPS gets much harder to earn.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
2026 revenue path
The key number is whether revenue starts moving from $4.7B toward the $5B estimate. That is the bridge between "good company" and "stock works from here."
trend
repair systems & information
This unit grew 10% in the recent quarter. If that cools hard, the best growth pocket on the page gets smaller fast.
calendar
next earnings print
Watch whether EPS moves cleanly above $19.20 without another one-time benefit doing the heavy lifting.
risk
credit quality in financing
The financing arm helps close sales, but it can also turn into a drag if customer credit weakens. Thin disclosure here is a reason to stay alert.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they still like the setup.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. This is a steadier industrial than most.
chart momentum
average
technical score 3 — the stock is acting normal, not euphoric and not broken.
earnings predictability
90 / 100
management usually delivers a narrow range of outcomes. You are not signing up for many earnings surprises here.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 440 buyers vs. 394 sellers in 3q2025. total institutional holdings: 47.4M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$288
$490
$350
current price
$389
target midpoint · +11% from current · 3-5yr high: $400 (+15% · 6% ann'l return)
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