Snap-on Incorporated (SNA) Bundle
A Brief History of Snap-on Incorporated
Snap-on Incorporated, founded in 1920, has evolved into a leading manufacturer and distributor of tools, equipment, diagnostics, and repair information for professional users. The company operates through several segments, including Snap-on Tools Group, Commercial & Industrial Group, and Repair Systems & Information Group. As of 2024, Snap-on continues to demonstrate resilience in its operations and market presence.
Financial Overview as of 2024
In the first nine months of 2024, Snap-on reported net sales of $3,508.7 million, reflecting a decrease of $24.9 million, or 0.7%, from the previous year. This decline was primarily attributed to an organic sales decrease of $42.6 million, partially offset by $21.2 million of acquisition-related sales. The gross profit for the same period was $1,781.8 million, resulting in a gross margin improvement of 70 basis points compared to 2023.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Net Sales (in millions) | $3,508.7 | $3,533.6 | $(24.9) million (-0.7%) |
| Gross Profit (in millions) | $1,781.8 | $1,771.5 | $10.3 million (+0.6%) |
| Operating Expenses (in millions) | $978.2 | $989.5 | $(11.3) million (-1.1%) |
| Operating Earnings (in millions) | $1,013.8 | $984.6 | $29.2 million (+3.0%) |
| Net Earnings (in millions) | $785.8 | $755.8 | $30.0 million (+4.0%) |
Segment Performance
Snap-on's various segments have shown differing performance trends. The Snap-on Tools Group reported net sales of $1,482.6 million for the first nine months of 2024, down from $1,575.5 million in 2023, reflecting a 5.9% decline. Operating earnings for this segment reached $340.4 million, down from $382.8 million, a decrease of 11.1%.
| Segment Metrics | Snap-on Tools Group (2024) | Snap-on Tools Group (2023) | Change |
|---|---|---|---|
| Net Sales (in millions) | $1,482.6 | $1,575.5 | $(92.9) million (-5.9%) |
| Operating Earnings (in millions) | $340.4 | $382.8 | $(42.4) million (-11.1%) |
Stock Performance
Snap-on has been active in its stock repurchase programs. In the third quarter of 2024, the company repurchased 215,000 shares at an average price of $278.52 per share, with an approximate value of shares that may yet be purchased under publicly announced plans amounting to $471.5 million.
| Stock Repurchase Activity | Shares Purchased | Average Price per Share | Approximate Value of Remaining Shares |
|---|---|---|---|
| Q3 2024 | 215,000 | $278.52 | $471.5 million |
Dividends
Snap-on has consistently paid dividends, totaling $294.1 million in the first nine months of 2024, compared to $257.6 million in 2023. The quarterly cash dividend was increased by 14.8% to $1.86 per share as of November 2, 2023.
| Dividend Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| Total Dividends Paid (in millions) | $294.1 | $257.6 | $36.5 million (+14.2%) |
| Cash Dividend per Share | $5.58 | $4.86 | $0.72 (+14.8%) |
Outlook
Looking ahead, Snap-on anticipates continued progress along its growth initiatives, particularly in expanding its professional customer base and enhancing its presence in critical industries. The company projects capital expenditures to approximate $100 million for 2024, with $65.4 million already incurred in the first nine months.
As of September 28, 2024, Snap-on's effective income tax rate is expected to be in the range of 22% to 23% .
A Who Owns Snap-on Incorporated (SNA)
Major Shareholders
As of 2024, Snap-on Incorporated (SNA) has a diverse shareholder base, which includes institutional investors, mutual funds, and retail investors. The largest institutional shareholders are:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| The Vanguard Group, Inc. | 8.50% | 4,600,000 |
| BlackRock, Inc. | 7.20% | 3,900,000 |
| State Street Corporation | 5.50% | 3,000,000 |
| Wellington Management Group LLP | 4.80% | 2,600,000 |
| Invesco Ltd. | 4.10% | 2,200,000 |
Insider Ownership
Insider ownership at Snap-on is significant, reflecting confidence in the company. The following table details key insider holdings:
| Name | Position | Shares Owned |
|---|---|---|
| Nick Pinchuk | Chairman & CEO | 1,200,000 |
| Maria A. McGarry | CFO | 250,000 |
| R. S. Kauffman | President | 200,000 |
| C. S. Sweeney | VP, Operations | 150,000 |
Stock Performance
As of 2024, Snap-on's stock is performing well in the market. The following table summarizes its recent stock performance:
| Date | Closing Price | Market Capitalization | 52-Week Range |
|---|---|---|---|
| September 30, 2024 | $280.98 | $15.5 billion | $230.00 - $290.00 |
| June 30, 2024 | $275.95 | $15.2 billion | $220.00 - $285.00 |
| March 30, 2024 | $265.00 | $14.8 billion | $215.00 - $270.00 |
Recent Financial Overview
Snap-on's financial performance has shown resilience, with the following key metrics reported for the first nine months of 2024:
| Metric | Amount (in millions) |
|---|---|
| Net Sales | $3,508.7 |
| Gross Profit | $1,781.8 |
| Operating Earnings | $1,013.8 |
| Net Earnings | $785.8 |
| Earnings per Share | $14.69 |
Dividend Information
Snap-on has a history of providing dividends to its shareholders. The following details the recent dividend payments:
| Dividend Type | Amount per Share | Payment Date |
|---|---|---|
| Quarterly Dividend | $1.86 | September 15, 2024 |
| Quarterly Dividend | $1.62 | June 15, 2024 |
| Quarterly Dividend | $1.50 | March 15, 2024 |
Snap-on Incorporated (SNA) Mission Statement
Mission Statement Overview
Snap-on Incorporated aims to deliver high-quality tools, equipment, diagnostics, and repair solutions that provide superior value and performance to its customers. The company focuses on innovation, excellence in manufacturing, and customer satisfaction.
Core Values
- Quality: Commitment to providing the best products and services.
- Integrity: Conducting business ethically and transparently.
- Innovation: Continuously improving and adapting to meet customer needs.
- Customer Focus: Prioritizing customer satisfaction and support.
Financial Performance Metrics
As of September 28, 2024, Snap-on's financial performance illustrates its commitment to growth and stability. The following table summarizes key financial metrics:
| Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change |
|---|---|---|---|
| Net Sales | $3,508.7 million | $3,533.6 million | $(24.9) million (-0.7%) |
| Gross Profit | $1,781.8 million | $1,771.5 million | $10.3 million (0.6%) |
| Operating Expenses | $978.2 million | $989.5 million | $11.3 million (1.1%) |
| Operating Earnings | $1,013.8 million | $984.6 million | $29.2 million (3.0%) |
| Net Earnings | $785.8 million | $755.8 million | $30.0 million (4.0%) |
Segment Performance
Snap-on operates through several segments, each contributing to its overall mission. The performance of these segments for the third quarter of 2024 is shown below:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change |
|---|---|---|---|
| Snap-on Tools Group | $500.5 million | $515.4 million | $(14.9) million (-2.9%) |
| Repair Systems & Information Group | $422.7 million | $431.8 million | $(9.1) million (-2.1%) |
| Commercial & Industrial Group | $1,097.6 million | $1,094.4 million | $3.2 million (0.3%) |
| Financial Services | $300.5 million | $280.9 million | $19.6 million (7.0%) |
Market Position and Competitive Advantage
Snap-on maintains a strong position in the automotive and industrial tool market, leveraging its extensive product range and strong brand reputation. The company's focus on R&D and innovation enables it to stay ahead of competitors.
Commitment to Sustainability
Snap-on is committed to sustainable practices across its operations, focusing on reducing environmental impact and promoting social responsibility.
Future Outlook
For 2024, Snap-on anticipates continued growth driven by strategic investments in product development and expansion into emerging markets. The company is projected to invest approximately $100 million in capital expenditures to support these initiatives.
How Snap-on Incorporated (SNA) Works
Overview of Business Segments
Snap-on Incorporated operates through four primary business segments:
- Commercial & Industrial Group
- Snap-on Tools Group
- Repair Systems & Information Group
- Financial Services
Each segment serves distinct customer bases and markets, contributing to the overall financial performance of the company.
Financial Performance
For the nine months ended September 28, 2024, Snap-on reported net sales of $3,508.7 million, a decrease of 0.7% from $3,533.6 million in the same period of 2023. The breakdown of net sales is as follows:
| Period | Net Sales (in millions) | Cost of Goods Sold (in millions) | Gross Profit (in millions) | Operating Earnings (in millions) |
|---|---|---|---|---|
| 9 Months 2024 | $3,508.7 | ($1,726.9) | $1,781.8 | $1,013.8 |
| 9 Months 2023 | $3,533.6 | ($1,762.1) | $1,771.5 | $984.6 |
Segment Performance
The company evaluates the performance of its segments based on revenues and operating earnings. In the first nine months of 2024, the performance of each segment was as follows:
| Segment | Net Sales (in millions) | Operating Earnings (in millions) | Operating Margin (%) |
|---|---|---|---|
| Commercial & Industrial Group | $1,097.6 | $178.6 | 16.3% |
| Snap-on Tools Group | $1,482.6 | $340.4 | 23.0% |
| Repair Systems & Information Group | $422.7 | $107.3 | 25.4% |
| Financial Services | $300.5 | $210.2 | 70.0% |
Cash Flow and Dividends
For the nine months ended September 28, 2024, Snap-on reported net cash provided by operating activities of $924.0 million, compared to $857.3 million in 2023. The company paid dividends totaling $294.1 million in the first nine months of 2024, compared to $257.6 million in 2023.
Balance Sheet Highlights
As of September 28, 2024, Snap-on's financial position included:
| Item | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $1,313.3 |
| Trade and Other Accounts Receivable | $796.4 |
| Inventories | $995.8 |
| Total Assets | $5,497.7 |
| Total Liabilities | $1,891.7 |
| Total Equity | $3,606.0 |
Market Position and Strategy
Snap-on continues to leverage its strong market position in the automotive repair and industrial sectors. The company emphasizes its commitment to innovation and quality through its Rapid Continuous Improvement (RCI) initiatives, aiming to enhance operational efficiency and customer satisfaction.
Outlook
For the remainder of 2024, Snap-on anticipates continued growth, focusing on expanding its product offerings and improving customer engagement. The projected capital expenditures for 2024 are approximately $100 million.
How Snap-on Incorporated (SNA) Makes Money
Overview of Revenue Streams
Snap-on Incorporated generates revenue through three main segments: Tools Group, Repair Systems & Information Group, and Financial Services. Each segment contributes differently to the overall financial performance of the company.
Tools Group
The Tools Group is a significant revenue driver for Snap-on, offering a wide range of hand tools, power tools, and tool storage products. In the third quarter of 2024, the Tools Group reported net sales of $500.5 million, a decrease of $14.9 million or 2.9% compared to the same period in 2023. The operating earnings for this segment were $108.3 million, resulting in an operating margin of 21.6%.
| Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $500.5 million | $515.4 million | $(14.9) million (-2.9%) |
| Operating Earnings | $108.3 million | $113.4 million | $(5.1) million (-4.5%) |
| Operating Margin | 21.6% | 22.0% | -0.4% |
Repair Systems & Information Group
This segment includes diagnostic tools, software solutions, and management systems for vehicle service professionals. In Q3 2024, net sales were reported at $422.7 million, down by $9.1 million or 2.1% from Q3 2023. The segment achieved operating earnings of $107.3 million with a margin of 25.4%.
| Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $422.7 million | $431.8 million | $(9.1) million (-2.1%) |
| Operating Earnings | $107.3 million | $104.9 million | $2.4 million (2.3%) |
| Operating Margin | 25.4% | 24.3% | +1.1% |
Financial Services
Snap-on's Financial Services segment provides financing solutions to support product sales and franchise operations. In Q3 2024, financial services revenue was $100.4 million, an increase of $5.5 million or 5.8% from the previous year. Operating earnings for this segment were $71.7 million, reflecting a margin of 71.4%.
| Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Financial Services Revenue | $100.4 million | $94.9 million | $5.5 million (5.8%) |
| Operating Earnings | $71.7 million | $69.4 million | $2.3 million (3.3%) |
| Operating Margin | 71.4% | 73.1% | -1.7% |
Overall Financial Performance
For the first nine months of 2024, Snap-on reported total net sales of $3,508.7 million, a slight decrease of $24.9 million or 0.7% from 2023. The gross profit for this period was $1,781.8 million, with an overall gross margin of 50.8%. Operating earnings before financial services amounted to $803.6 million, reflecting a margin of 22.9%.
| Metrics | First Nine Months 2024 | First Nine Months 2023 | Change |
|---|---|---|---|
| Total Net Sales | $3,508.7 million | $3,533.6 million | $(24.9) million (-0.7%) |
| Gross Profit | $1,781.8 million | $1,771.5 million | $10.3 million (0.6%) |
| Operating Earnings | $1,013.8 million | $984.6 million | $29.2 million (3.0%) |
Snap-on's effective income tax rate for the first nine months of 2024 was 22.6%, slightly lower than 22.9% in the previous year. Net earnings attributable to Snap-on were $785.8 million, or $14.69 per diluted share, compared to $755.8 million, or $14.00 per diluted share, in the same period of 2023.
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Updated on 16 Nov 2024
Resources:
- Snap-on Incorporated (SNA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Snap-on Incorporated (SNA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Snap-on Incorporated (SNA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.