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olivLaw · US equity research

Snap-on Incorporated SNA

Cutlery, Handtools & General Hardware · SIC 3420 · Vertical: Cutlery, Handtools & General Hardware (SIC 3420)

368.70USD+1.84% · 1 dayClose 04 Nov 2026

Snap-on is a global maker of tools, equipment, diagnostics and repair information for professionals in critical industries. Net sales were 4743.2 million USD in fiscal 2025, and 1183.7 million USD in the third quarter of 2026. The quarter was hit by a 2.8% organic sales decline and a sharp rise in diesel prices, while activity in critical industries kept expanding.

At the close of 04 Nov 2026, Snap-on Incorporated (SNA) stock was 368.70 USD (+1.84% on the day), with market capitalisation 19.0 bn USD, P/E 19.2 on diluted EPS of 19.22 USD over the last 12 months, dividend yield 2.65%, beta 0.73, 52-week range 328.69–419.31 USD. Latest reported quarter (Q3 2027): revenue of 1.3 bn USD (−0.7% YoY), net income of 243.0 m USD (−8.4% YoY), diluted EPS 4.64 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
19.0 bn USD
shares as of 16 Oct 2026
P/E (TTM)
19.2
Diluted EPS TTM 19.22 · TTM to 03 Oct 2026
E/P (TTM)
5.21%
TTM to 03 Oct 2026
Dividend yield
2.65%
DPS 12m 9.76
Beta (2y)
0.73
Volatility (1y) 19%
52-week range
328.69419.31

Price history

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Technical reading

RSI (14)
55.0
strong (55–70)
Bollinger (20, 2)
353.16 – 370.47
in the upper half of the band · %B 0.90 · band width 4.8%
SMA 50 / 200
369.89 / 380.29
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-2.25 / -3.55
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+0.4%−1.1%+1.5 pp—
3 months−12.0%−0.5%−11.5 pp—
6 months−4.6%+4.4%−9.0 pp—
Year to date+7.0%+12.3%−5.3 pp—
1 year+8.8%+13.5%−4.7 pp+56.3%
3 years+36.1%+76.4%−40.3 pp+38.5%
5 years+73.9%+63.7%+10.2 pp—
Max drawdown (1y)
−15.2%
28 Jul 2026 → 28 Oct 2026
Max drawdown (5y)
−21.3%
26 Nov 2024 → 21 Apr 2025
Compound annual growth (5y)
+11.7%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2027 · 03 Oct 2026

Revenue
1.3 bn USD
−0.7% YoY
Net income
243.0 m USD
−8.4% YoY
Diluted EPS
4.64
−7.6% YoY
net / operating
19.0% / 24.7%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '26Q2 '26Q3 '26Q4 '26Q1 '27Q2 '27Q3 '27
Revenue1.3 bn1.2 bn1.3 bn1.3 bn1.3 bn1.3 bn1.3 bn1.3 bn
Operating income331.9 m313.4 m327.3 m347.4 m339.6 m318.8 m336.4 m316.4 m
Interest expense12.3 m12.4 m12.3 m12.4 m13.4 m12.4 m12.3 m12.5 m
Pre-tax income339.2 m315.4 m329.3 m349.3 m341.9 m323.2 m339.2 m319.3 m
Income tax75.0 m68.7 m72.5 m77.5 m74.9 m69.7 m73.0 m69.7 m
Net income258.1 m240.5 m250.3 m265.4 m260.7 m247.0 m260.6 m243.0 m
Diluted EPS4.83 ≈4.514.725.024.93 ≈4.694.964.64
Operating cash flow293.5 m298.5 m237.2 m ≈277.9 m ≈268.1 m368.7 m271.5 m ≈247.7 m ≈
Dividends paid112.3 m112.2 m111.8 m ≈111.5 m ≈126.7 m126.8 m126.4 m ≈126.1 m ≈
Share repurchases112.5 m87.2 m79.0 m ≈82.0 m ≈80.4 m99.9 m91.4 m ≈87.1 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 91 percentile of its own 33-quarter history (min 12.1, median 15.4, max 21.0; quarters with earnings only).

Fiscal years

Fiscal year20172018201920212022202320242026
Revenue4.0 bn4.1 bn4.1 bn3.9 bn4.8 bn5.1 bn5.1 bn5.2 bn
Revenue YoY+7.8%+1.8%−0.1%unavailable+22.8%+5.5%+0.0%unavailable
Net income557.7 m679.9 m693.5 m627.0 m911.7 m1.0 bn1.0 bn1.0 bn
Net income YoY+2.1%+21.9%+2.0%unavailable+45.4%+10.9%+3.2%unavailable
Diluted EPS9.5211.8712.4111.4416.8218.7619.5119.19
Diluted EPS YoY+3.5%+24.7%+4.5%unavailable+47.0%+11.5%+4.0%unavailable
net %13.9%16.7%17.0%15.9%18.8%19.8%20.4%19.7%
Free cash flowunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 03 Jan 2026

Cash
1.6 bn USD
Financial debt
1.2 bn USD
Net debt
-438.1 m USD
Equity
6.0 bn USD
Total assets
8.4 bn USD
Debt / equity
0.20x
Current ratio
4.79x
ROE
unavailable
ROA
12.1%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
5.1 bn
2024
5.1 bn
2026
5.2 bn

SEC (XBRL)· 12 Feb 2026verified

Research & development
2023
64.7 m
2024
67.0 m
2026
72.4 m

SEC (XBRL)· 12 Feb 2026verified

Operating income
2023
1.3 bn
2024
1.3 bn
2026
1.3 bn

SEC (XBRL)· 12 Feb 2026verified

Depreciation & amortisation
2023
99.3 m
2024
98.0 m
2026
98.5 m

SEC (XBRL)· 12 Feb 2026verified

EBITDA
2023
1.4 bn ≈
2024
1.4 bn ≈
2026
1.4 bn ≈

SEC (XBRL)· 12 Feb 2026derived

Interest expense
2023
49.9 m
2024
49.6 m
2026
50.5 m

SEC (XBRL)· 12 Feb 2026verified

Pre-tax income
2023
1.3 bn
2024
1.4 bn
2026
1.3 bn

SEC (XBRL)· 12 Feb 2026verified

Income tax
2023
293.4 m
2024
304.2 m
2026
293.6 m

SEC (XBRL)· 12 Feb 2026verified

Net income
2023
1.0 bn
2024
1.0 bn
2026
1.0 bn

SEC (XBRL)· 12 Feb 2026verified

Diluted EPS
2023
18.76
2024
19.51
2026
19.19

SEC (XBRL)· 12 Feb 2026verified

Weighted average diluted shares
2023
53.9 m
2024
53.5 m
2026
53.0 m

SEC (XBRL)· 12 Feb 2026verified

Dividend per share
2023
6.72
2024
7.72
2026
8.86

SEC (XBRL)· 12 Feb 2026verified

Balance sheet · USD

Cash
2023
1.0 bn
2024
1.4 bn
2026
1.6 bn

SEC (XBRL)· 12 Feb 2026verified

Receivables
2023
791.3 m
2024
815.6 m
2026
881.4 m

SEC (XBRL)· 12 Feb 2026verified

Inventories
2023
1.0 bn
2024
943.4 m
2026
1.0 bn

SEC (XBRL)· 12 Feb 2026verified

Current assets
2023
3.7 bn
2024
4.0 bn
2026
4.4 bn

SEC (XBRL)· 12 Feb 2026verified

Goodwill
2023
1.1 bn
2024
1.1 bn
2026
1.1 bn

SEC (XBRL)· 12 Feb 2026verified

Intangibles (excl. goodwill)
2023
268.9 m
2024
267.6 m
2026
270.7 m

SEC (XBRL)· 12 Feb 2026verified

Total assets
2023
7.5 bn
2024
7.9 bn
2026
8.4 bn

SEC (XBRL)· 12 Feb 2026verified

Accounts payable
2023
238.0 m
2024
265.9 m
2026
229.1 m

SEC (XBRL)· 12 Feb 2026verified

Short-term debt
2023
—
2024
—
2026
0

SEC (XBRL)· 23 Apr 2026verified

Long-term debt
2023
1.2 bn
2024
1.2 bn
2026
1.2 bn

SEC (XBRL)· 12 Feb 2026verified

Current liabilities
2023
941.6 m
2024
961.5 m
2026
918.5 m

SEC (XBRL)· 12 Feb 2026verified

Total liabilities
2023
2.5 bn
2024
2.5 bn
2026
2.5 bn

SEC (XBRL)· 12 Feb 2026verified

Equity
2023
5.1 bn
2024
5.4 bn
2026
6.0 bn

SEC (XBRL)· 12 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
1.2 bn
2024
1.2 bn
2026
1.1 bn

SEC (XBRL)· 12 Feb 2026verified

Investing cash flow
2023
-331.8 m
2024
-204.1 m
2026
-73.1 m

SEC (XBRL)· 12 Feb 2026verified

Financing cash flow
2023
-572.9 m
2024
-649.8 m
2026
-749.9 m

SEC (XBRL)· 12 Feb 2026verified

Dividends paid
2023
355.6 m
2024
406.4 m
2026
462.2 m

SEC (XBRL)· 12 Feb 2026verified

Share repurchases
2023
294.7 m
2024
290.0 m
2026
328.6 m

SEC (XBRL)· 12 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
unavailable
input data missing
Revenue CAGR 3Y
0.3%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
5.5%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
unavailable
input data missing
Net income CAGR 3Y
0.2%
computed by olivLawFY 2023 → FY 2026
Net income CAGR 5Y
10.2%
computed by olivLawFY 2021 → FY 2026
EPS growth (YoY)
unavailable
input data missing
EPS CAGR 3Y
0.8%
computed by olivLawFY 2023 → FY 2026
EPS CAGR 5Y
10.9%
computed by olivLawFY 2021 → FY 2026
FCF growth (YoY)
unavailable
input data missing

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
26.8%
computed by olivLawTTM to 03 Oct 2026
EBIT margin
24.9%
computed by olivLawTTM to 03 Oct 2026
Net margin
19.2%
computed by olivLawTTM to 03 Oct 2026
FCF margin
unavailable
input data missing

Returns

ROE
17.0%
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
ROA
11.9%
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
ROIC
19.0%
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
ROCE
17.8%
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
Payout ratio (EPS)
50.8%
computed by olivLawTTM to 03 Oct 2026
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
-782.8 m USD
computed by olivLawbalance sheet at 03 Oct 2026
Net debt / EBITDA
-0.6x
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
Debt / equity
0.1x
computed by olivLawbalance sheet at 03 Oct 2026
Interest coverage
25.9x
computed by olivLawTTM to 03 Oct 2026

Liquidity

Current ratio
3.5x
computed by olivLawbalance sheet at 03 Oct 2026
Quick ratio
2.7x
computed by olivLawbalance sheet at 03 Oct 2026
Cash ratio
1.3x
computed by olivLawbalance sheet at 03 Oct 2026

Cash

Operating cash flow
1.2 bn USD
computed by olivLawTTM to 03 Oct 2026
Capital expenditure
unavailable
input data missing
Free cash flow
unavailable
input data missing
FCF conversion
unavailable
input data missing
Cash conversion
82.0%
computed by olivLawTTM to 03 Oct 2026

Efficiency

Days sales outstanding
64 days
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
19.0 bn USD
computed by olivLawbalance sheet at 03 Oct 2026
Enterprise value
18.2 bn USD
computed by olivLawbalance sheet at 03 Oct 2026
Market cap / net income TTM
18.8x
computed by olivLawTTM to 03 Oct 2026
P/E (TTM)
19.2x
computed by olivLawTTM to 03 Oct 2026
Earnings yield
5.2%
computed by olivLawTTM to 03 Oct 2026
P/B
3.1x
computed by olivLawbalance sheet at 03 Oct 2026
P/S
3.6x
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
EV/EBITDA
12.9x
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
EV/EBIT
13.9x
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
EV/Sales
3.5x
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
2.6%
computed by olivLawTTM to 03 Oct 2026
Shareholder yield (distributions)
4.5%
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026

Risk

Altman Z
7.43
computed by olivLawbalance sheet at 03 Oct 2026

Valuation

olivLaw classification

Neutral profile

Score: 66 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

368.70 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 19.0 bn USD

Key indicators

Market capitalisation
19.0 bn USD
computed by olivLawbalance sheet at 03 Oct 2026
P/E (TTM)
19.2x
computed by olivLawTTM to 03 Oct 2026
P/B
3.1x
computed by olivLawbalance sheet at 03 Oct 2026
EV/EBITDA
12.9x
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
ROE
17.0%
computed by olivLawTTM to 03 Oct 2026 · balance sheet at 03 Oct 2026
Net margin
19.2%
computed by olivLawTTM to 03 Oct 2026
Revenue growth (YoY)
unavailable
input data missing
Dividend yield
2.6%
computed by olivLawTTM to 03 Oct 2026

Coverage and freshness

30/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 03 Oct 2026
Latest balance sheet date: 03 Oct 2026
Share count (cover of the latest filing), as of: 16 Oct 2026
Source: SEC (XBRL)published 22 Oct 2026
verified 2676derived 140

Score by group

  • Balance sheet100
  • Valuation63
  • Quality90
  • Growth4
  • Returns65

Estimated value range

Low
176.45
USD per share
Mid
339.51
USD per share
High
388.70
USD per share
Price: 368.70 USD
The price is within the range
Potential to the central value: -7.9% (value / price − 1)
Margin of safety: -8.6% (1 − price / value)
Agreement between methods: low · 3 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 116.43 – 444.07 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDA176.45 – 388.70 (Mid 339.51)
    6 companies used · median multiple 11.9x · quartiles 5.9x – 13.7x
    ACU, EML, HLMN, LCUT, RECT, SSD
  • Peers: P/E412.32 – 444.07 (Mid 431.19)
    5 companies used · median multiple 22.4x · quartiles 21.4x – 23.1x
    ACU, CIX, EML, SSD, SWK
  • Dividend discount (DDM)116.43 – 156.58 (Mid 133.55)
Multiple comparisons use the SIC vertical: Cutlery, Handtools & General Hardware (SIC 3420)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 66/100

FactorValueScoreWeight used
ROIC · Quality19.0%83 (vs peers)13%
Net margin · Quality19.2%100 (vs peers)8%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth0.3%3 (on a fixed band)10%
EPS CAGR 3Y · Growth0.8%5 (on a fixed band)10%
Net debt / EBITDA · Balance sheet-0.6x100 (vs peers)13%
Interest coverage · Balance sheet25.9x100 (on a fixed band)8%
Current ratio · Balance sheet3.5x100 (on a fixed band)5%
P/E (TTM) · Valuation19.2x75 (vs peers)13%
EV/EBITDA · Valuation12.9x50 (vs peers)13%
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returns4.5%65 (on a fixed band)8%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet100/100 · 3/3 factors with a value
  • Growth4/100 · 2/2 factors with a value
  • Quality90/100 · 2/3 factors with a value
  • Returns· partial65/100 · 1/2 factors with a value
  • Valuation63/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Snap-on Inc (SNA). Latest full fiscal year: 2026; data up to 2026-10-03.

Figures computed from the financial statements: revenue 5.2 bn USD in 2026; net margin 19.2%; ROE 17.0%; net debt/EBITDA -0.6x.

The estimated value range is 176.45–388.70 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 339.51 USD, the price of 368.70 USD leaves a potential of -7.9% (value / price − 1) and a margin of safety of -8.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 66/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • ROIC: 19.0%
  • Net margin: 19.2%
  • Net debt / EBITDA: -0.6x
  • Interest coverage: 25.9x
  • Current ratio: 3.5x
  • P/E (TTM): 19.2x

What contradicts it

  • Revenue CAGR 3Y: 0.3%
  • EPS CAGR 3Y: 0.8%
  • The valuation methods diverge

Not assessed (insufficient data or a ratio without meaning): FCF conversion, FCF yield, Payout ratio (FCF).

Versus the vertical median

Cutlery, Handtools & General Hardware (SIC 3420) · same industry (4-digit SIC) · compared with 8 companies

The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.

Multiples and returns vs the median

P/E
19.2x
vertical median 21.9x
below median (−12.6%)
EV/EBITDA
12.9x
vertical median 11.9x
above median (+9.0%)
P/S
3.6x
vertical median 1.1x
above median (+228.6%)
P/B
3.1x
vertical median 1.7x
above median (+85.0%)
ROE
17.0%
vertical median 11.7%
above median (+45.7%)
Net margin
19.2%
vertical median 5.2%
above median (+271.6%)
EBIT margin
24.9%
vertical median 8.3%
above median (+199.4%)
Revenue YoY
—
vertical median 5.0%
Net debt/EBITDA
-0.6x
vertical median 0.4x
below median (−250.2%)
Dividend yield
2.6%
vertical median 1.5%
above median (+73.3%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
SNASnap-on Inc19.0 bn19.217.0%19.2%unavailable+9% / +36%
SWKStanley Black & Decker, Inc.17.6 bn21.29.4%5.5%unavailable+65% / +30%
SSDSimpson Manufacturing Co., Inc.8.4 bn22.418.7%15.6%+4.5%+23% / +23%
HLMNHillman Solutions Corp.1.7 bn68.62.0%1.5%+5.4%+0% / +20%
CIXCompx International Inc457.6 m23.116.3%14.0%+8.5%+65% / +58%
ACUAcme United Corp271.2 m29.78.4%4.6%+1.1%+91% / +97%
LCUTLifetime Brands, Inc.204.4 m6.215.8%4.8%−5.1%+133% / +38%
EMLThe Eastern Company173.4 m21.46.3%3.4%unavailable+48% / +59%
RECTRectitude Holdings Ltd18.4 m6.713.9%7.0%+22.0%−37% / unavailable

1- and 3-year price returns: for SNA from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
212.90
Total return -40% · Per year -40%
377.19
Total return 5% · Per year 5%
569.24
Total return 58% · Per year 58%
3 years
189.60
Total return -43% · Per year -17%
379.54
Total return 11% · Per year 4%
631.31
Total return 82% · Per year 22%
5 years
168.84
Total return -45% · Per year -11%
381.90
Total return 17% · Per year 3%
700.14
Total return 108% · Per year 16%
What moves the 3-year price the most
  • Exit P/E± 94.88
  • Net margin± 66.42
  • Annual revenue growth± 56.80
  • Annual dilution± 5.58

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Snap-on is a global maker of tools, equipment, diagnostics and repair information for professionals in critical industries. Net sales were 4743.2 million USD in fiscal 2025 1, and 1183.7 million USD in the third quarter of 2026 3. The quarter was hit by a 2.8% organic sales decline 3 and a sharp rise in diesel prices, while activity in critical industries kept expanding 3.

SWOT

Strengths

  • A brand recognised by professionals, a franchise network of mobile vans and a broad portfolio of products and services 1.
  • In-house manufacturing across several regions helps cushion the effect of tariffs 1.
  • Integrated financial services support sales to franchisees and end customers 1.

Weaknesses

  • Heavy reliance on franchisee success, which can be hurt by difficult economic conditions 1.
  • Sales can fluctuate sharply from quarter to quarter, especially when the franchise channel reduces inventories 3.
  • Exposure to raw material and energy costs that cannot always be passed on fully to customers 1.

Opportunities

  • Growth in critical industries and emerging markets could offset weakness in the automotive market 23.
  • Recent acquisitions in hydraulics and heavy-vehicle diagnostics open new customer segments 2.
  • If artificial intelligence and proprietary databases are integrated effectively, information products could gain value 1.

Threats

  • Trade tariffs and international tensions could raise costs and disrupt supply chains 1.
  • Intense competition and pricing pressure could limit the ability to sustain premium margins 1.
  • Reduced use of private vehicles could mean fewer repairs and lower demand for the company's products 1.

Risks

  • Dependence on the mobile franchise channelhigh

    The Tools segment depends on franchisee success; if franchisees struggle, sales and collections could be affected 1.

  • International exposuremedium

    A significant share of revenue comes from outside the United States, where political, currency and trade risks could affect results 1.

  • Raw material and energy costsmedium

    Higher prices for steel, components and energy could compress margins if they cannot be offset through pricing or efficiencies 13.

  • Supply chain disruptionmedium

    Disruption at factories or shortages of specialised components could affect production and profitability 1.

  • New product acceptancelow

    If new products fail to win market acceptance, revenue and profitability could fall short of expectations 1.

Investment thesis

What would need to be true (bull case)

  • Organic growth in critical industries and solid results at the Commercial & Industrial segment show the company's diversification potential 3.
  • Gross margins stayed strong even in a difficult quarter, suggesting a degree of resilience in the business model 3.
  • Recent acquisitions extend capabilities in hydraulics and diagnostics, which could support medium-term growth 2.

What would break the thesis

  • Falling organic sales in the Tools and Repair Systems segments show that demand in the automotive market can be volatile 3.
  • Operating margins declined from the prior year, and the company could face difficulties if cost increases continue 3.
  • Dependence on franchisees and the automotive market makes results sensitive to economic conditions and fuel prices 13.

What to watch

  • Organic sales trend in the Snap-on Tools Group and restocking by franchiseesQ4 2026
  • Contribution of recent acquisitions to segment sales and marginsQ4 2026
  • Impact of tariffs and energy costs on operating margin2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Snap-on operates four reportable segments: Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group and Financial Services 1. Products are sold through a franchise network of mobile vans as well as direct and distributor channels, in more than 130 countries 1. Its coherent growth strategy aims to widen the professional customer base beyond automotive repair, into sectors such as aerospace, the military and energy 1.

Market context

The main market is vehicle service and repair, served through technicians, independent shops and OEM dealerships, with demand shaped by the aging vehicle fleet and rising vehicle complexity 1. The industrial sector is more competitive, with many suppliers, but customers seek specialised and repeatable solutions 1.

Results are influenced by tariffs, steel and energy costs and currency moves, factors that could weigh on margins if prices cannot be raised enough 13. Expansion into emerging markets and critical industries remains a long-term strategic goal 1.

Trends

  • Growing vehicle complexitytailwind

    More complex vehicles and advanced driver assistance systems require specialised tools and data, which could favour diagnostics and repair information sales 1.

  • Diesel price shockheadwind

    A sudden rise in diesel prices led franchisees to cut inventories in the third quarter of 2026, which weighed on the Tools segment 3.

  • Tariffs and trade policymixed

    US tariffs introduced in 2025 could raise costs, but manufacturing in the markets where products are sold has cushioned the effect, and the company partly offset the impact 1.

  • Expansion in critical industriestailwind

    Demand from aerospace, energy and mining has grown, and recent acquisitions reinforce this direction, which could reduce reliance on the automotive market 23.

Competitive position

The market for professional tools and service equipment is intensely competitive, and price pressure from competitors and customers is rising 1. Competitors include global tool makers as well as specialists in diagnostics and vehicle equipment 1.

The company's edge rests on its brands, franchise network and ability to innovate; if it fails to keep pace with technological change, its competitive position could be affected 1.

  • Stanley Black & DeckerSWK

    Maker of hand and power tools and a direct competitor in professional tools 1.

  • Diagnostics and repair information providers

    Suppliers of diagnostics and technical information for automotive service shops, competing with Snap-on's repair information products 1.

  • Vehicle service equipment manufacturers

    Makers of lifts, wheel alignment and balancing equipment that compete with the company's equipment range 1.

  • Industrial tool suppliers

    Suppliers with full-line or specialised portfolios that compete in the Commercial & Industrial segment 1.

News & filings

In the press

The latest news item in our archive is from 02 Oct 2026; the newest SEC filing is from 22 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-01-03 · SEC / Snap-on Incorporated · 12 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-10-03 · SEC / Snap-on Incorporated · 22 Oct 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Snap-on Incorporated · 22 Oct 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.