Reinhart Partners LLC reduces stake in Snap-on Incorporated by 6.8% in third quarter
October 18, 2024
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Snap-on Incorporated ($NYSE:SNA) is a leading global manufacturer and marketer of tools, equipment, diagnostics, repair information, and systems solutions for professional users performing critical tasks. The company’s products and services are used by mechanics, technicians, and service managers in the automotive, aviation, marine, and industrial markets. The recent 13F filing by Reinhart Partners LLC, a Michigan-based investment management firm, reveals that the company has decreased its stake in Snap-on Incorporated by 6.8% during the third quarter. This decrease in stake could be a result of various factors, including market volatility and changing investment strategies by Reinhart Partners. One possible reason for the reduction in stake could be the overall performance of the industrial sector. This could have led Reinhart Partners to re-evaluate its holdings in Snap-on and make adjustments accordingly. Another factor that may have influenced the decision to reduce stake is the company’s financial performance. This decline is attributed to lower sales in their Commercial & Industrial Group due to weak demand from customers in the aerospace and oil and gas industries. Although the company’s earnings per share met analysts’ expectations, the decrease in revenue could have raised concerns for investors like Reinhart Partners. It is important to note that despite the reduction in stake, Reinhart Partners still holds a significant amount of shares in Snap-on Incorporated. This suggests that they still have confidence in the company’s long-term growth potential and are not completely divesting from it.
Additionally, the company’s recent initiatives, such as expanding its e-commerce capabilities and investing in new product development, could position them for success in the post-pandemic market. While this may raise concerns for some investors, it is important to consider the various factors that could have influenced this decision. As a well-established and trusted brand in the professional tool market, Snap-on is still poised for growth and could continue to be a valuable investment for Reinhart Partners and other investors in the long run.
Analysis
In my analysis of the financials of SNAP-ON INCORPORATED, I found that the company has a strong overall health score of 10/10. This is mainly due to its impressive cash flow and ability to manage debt effectively. With a high health score, SNAP-ON INCORPORATED is in a good position to pay off its debt and fund future operations. In terms of specific financial metrics, SNAP-ON INCORPORATED excels in multiple areas. The company has a strong asset base, which is important for long-term stability and growth. It also pays out dividends to shareholders, indicating a commitment to returning value to investors. Furthermore, SNAP-ON INCORPORATED has shown profitability and is positioned for continued growth. Based on my analysis, I would classify SNAP-ON INCORPORATED as a “gorilla” company. This means that the company has achieved stable and high revenue or earning growth due to its strong competitive advantage. This further solidifies the company’s position as a strong investment option for potential investors. Overall, I believe that investors who are interested in stable and successful companies with a strong competitive advantage would be drawn to SNAP-ON INCORPORATED. The company’s impressive health score and financial metrics make it an attractive option for those seeking long-term growth and stability in their investments. Additionally, the company’s classification as a “gorilla” further solidifies its potential as a strong investment choice. More…
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 |
| 5.11k | 1.01k | 19.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Snap-on Incorporated. More…
| Operations | Investing | Financing |
| 1.15k | -331.8 | -572.9 |
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 |
| 7.54k | 2.45k | 96.08 |
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 |
| 9.0% | 14.2% | 27.0% |
| FCF Margin | ROE | ROA |
| 20.7% | 17.4% | 11.4% |
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
Reinhart Partners LLC, a leading investment firm, decreased its holdings in Snap-on Incorporated by 6.8% in the third quarter. This indicates a decrease in confidence in the company’s performance and potential for growth. This move could be attributed to findings from their analysis of the company’s financials and market trends. It is likely that Reinhart Partners used various valuation methods and market data to come to this decision.
This news may impact the stock’s performance and influence other investors to re-evaluate their positions in Snap-on Incorporated. It is important for investors to closely monitor the company’s financials and market trends to make informed decisions about investing in the company.
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