Snap-on (SNA): Taking Stock of Valuation After a Quiet but Steady Share Price Climb
Snap-on (SNA) has quietly kept shareholders interested, with the stock edging higher over the past week and past 3 months even as its one year return has been roughly flat.
See our latest analysis for Snap-on.
With the share price now around $347.21 and a solid recent upward move, short term share price momentum is improving even though the 1 year total shareholder return is basically flat. The 5 year total shareholder return above 100% shows the longer term story is still firmly intact.
If Snap-on’s steady climb has you thinking about what else might be quietly compounding in the background, it could be worth exploring fast growing stocks with high insider ownership.
With shares trading near record levels, steady earnings growth, and only a modest gap to analyst targets, investors now face a key question: Is Snap-on undervalued or is the market already pricing in its future growth?
Most Popular Narrative: 3.8% Undervalued
With Snap-on closing at $347.21 versus a narrative fair value of $361, the valuation case rests on modest growth, resilient margins and ongoing buybacks.
The analysts have a consensus price target of $338.5 for Snap-on based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $400.0, and the most bearish reporting a price target of just $236.0.
Curious how steady revenue, rising margins and fewer shares combine to justify a richer future earnings multiple than today, yet stay below many Machinery peers? The full narrative lays out the numbers driving that gap.
Result: Fair Value of $361 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the narrative could be challenged if e commerce weakens Snap on’s franchise model or if faster EV adoption weighs on demand for traditional tools.
Find out about the key risks to this Snap-on narrative.
Build Your Own Snap-on Narrative
If you see the story differently or simply want to dig into the numbers yourself, you can build a personalised view in minutes: Do it your way.
A great starting point for your Snap-on research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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