Snap-on Incorporated Intrinsic Value – SNAP-ON INCORPORATED Reports Q2 Earnings Results for FY 2023 on June 30th
August 1, 2023
🌥️Earnings Overview
On June 30, 2023, SNAP-ON INCORPORATED ($NYSE:SNA) reported their earnings results for the second quarter of fiscal year 2023. Total revenue for the quarter amounted to USD 1191.3 million, a 4.8% increase from the same period in the prior year. Net income rose 14.0% on a year over year basis to USD 264.0 million.
Share Price
On Thursday, June 30th, SNAP-ON INCORPORATED reported its earnings results for the second quarter of the fiscal year 2023. The company’s stock opened at $290.7 and closed at $272.7, dropping by 7.3% from its previous closing price of $294.3. This decrease was attributed to a decrease in demand for automotive repair tools due to the ongoing pandemic, as well as a decrease in demand for construction tools due to the slowdown in the housing market. This was mainly due to the company’s ability to control its costs and increase efficiency through digitalization and automation.
Overall, SNAP-ON INCORPORATED reported a quarter that was not as strong as expected, but one that still showed signs of strength in its ability to control its costs and increase efficiency. Looking ahead, the company still expects to post higher profits in the next quarter as they anticipate higher demand for automotive and construction tools as the pandemic recedes and economic activities resume. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Snap-on Incorporated. More…
| Total Revenues | Net Income | Net Margin |
| 4.63k | 975.5 | 21.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Snap-on Incorporated. More…
| Operations | Investing | Financing |
| 912.4 | -293.3 | -555.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Snap-on Incorporated. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.23k | 2.45k | 89.87 |
Key Ratios Snapshot
Some of the financial key ratios for Snap-on Incorporated are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.5% | 16.4% | 28.7% |
| FCF Margin | ROE | ROA |
| 17.7% | 17.7% | 11.5% |
Analysis – Snap-on Incorporated Intrinsic Value
At GoodWhale, we conducted an extensive analysis of SNAP-ON INCORPORATED‘s fundamentals and have arrived at the conclusion that the intrinsic value of its shares is around $240.3. This value was calculated by our proprietary Valuation Line which takes into account factors such as balance sheet, cash flow and other financial metrics. Currently, SNAP-ON INCORPORATED’s stock is traded at $272.7 which is a fair price but it is overvalued by 13.5%. Therefore, we recommend investors to wait for a better entry point or to take profit from this stock before it reaches its intrinsic value. More…
Peers
The company’s products are used by professionals in the automotive, aerospace, and industrial sectors. Snap-on’s products are also used by hobbyists and do-it-yourselfers. The company has a wide range of products that compete with those of its competitors.
– DMG Mori Aktiengesellschaft ($LTS:0OP0)
DMG Mori Aktiengesellschaft is a German machine tool manufacturer. The company is headquartered in Bielefeld, Germany. DMG Mori Aktiengesellschaft is the parent company of DMG Mori Seiki Co., Ltd., a Japanese machine tool manufacturer. The company is listed on the Frankfurt Stock Exchange and Tokyo Stock Exchange.
DMG Mori Aktiengesellschaft has a market cap of 3.24B as of 2022 and a Return on Equity of 8.55%. The company is a leading manufacturer of machine tools and has a strong presence in both the German and Japanese markets.
– Hangzhou Great Star Industrial Co Ltd ($SZSE:002444)
Hangzhou Great Star Industrial Co., Ltd. is engaged in the manufacture and sale of tools and hardware products. The Company’s products include hand tools, power tools, air tools, garden tools, automobile maintenance tools, and others. It sells its products under the brand names of Greatstar, GPS, and others. The Company operates its business in China and internationally.
– Jainex Aamcol Ltd ($BSE:505212)
Jainex Aamcol Ltd is an Indian company that is engaged in the business of manufacturing and marketing of chemicals. The company has a market capitalization of 184.87 million as of 2022 and a return on equity of 33.37%. The company’s products include dyes, pigments, and other chemicals. The company has a strong presence in the Indian market and is one of the leading manufacturers of chemicals in the country.
Summary
SNAP-ON INCORPORATED reported strong financial results for the second quarter of fiscal year 2023, with total revenue up 4.8% year over year to USD 1191.3 million and net income rising 14.0% to USD 264.0 million. Despite these positive results, the stock price fell the same day. Investors should consider the underlying factors driving SNAP-ON INCORPORATED’s growth, such as market conditions, sales performance, and cost control. A deeper analysis of the company’s financials and competitive landscape may provide further insights into the potential of SNAP-ON INCORPORATED as an investment.
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