We raised our fair value estimate by 2% to $231 per share from $226. About half of the fair value estimate increase was attributed to the time value of money since our last update. We also increased our long-term estimates of profitability in the tools group.
The growth in vehicle miles driven increases the wear and tear on vehicles, requiring more maintenance and repair work to keep them on the road and benefiting Snap-on.
The ease with which individuals can order products online could spur technicians to buy more tools from e-retailers. In addition, online reviews may help technicians close any knowledge gap as they’re comparing which products to buy online.
|
Metric
|
SNA
|
ITW
|
VNT
|
|---|---|---|---|
Price/Earnings (Normalized) | 14.19 | 25.56 | 14.11 |
Price/Book Value | 2.77 | 24.66 | 7.07 |
Price/Sales | 2.84 | 4.68 | 2.06 |
Price/Cash Flow | 11.58 | 22.63 | 12.66 |
|
Metric
|
SNA
|
ITW
|
VNT
|
|---|---|---|---|
Quick Ratio | 2.70 | 0.92 | 0.88 |
Current Ratio | 3.82 | 1.33 | 1.39 |
Interest Coverage | 26.98 | 15.18 | 6.16 |
|
Metric
|
SNA
|
ITW
|
VNT
|
|---|---|---|---|
Return on Assets (Normalized) | 14.70% | 19.30% | 8.73% |
Return on Equity (Normalized) | 22.20% | 98.30% | 52.32% |
Return on Invested Capital (Normalized) | 17.65% | 28.19% | 13.91% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
TTNDF
| Techtronic Industries Co Ltd | — | Dmmfp | $25.5 Bil | |
TTNDY
| Techtronic Industries Co Ltd ADR | — | Tghshw | $25.0 Bil | |
SWK
| Stanley Black & Decker Inc | Vqhtcxpy | Jjh | $13.8 Bil | |
LECO
| Lincoln Electric Holdings Inc | Pdvrhcm | Qlxlkz | $13.0 Bil | |
SKUFF
| SKF AB Class B | — | Jymtb | $9.4 Bil | |
SKFRY
| SKF AB ADR | — | Fpkhb | $9.4 Bil | |
TTC
| The Toro Co | — | Xvpyvs | $9.1 Bil | |
MKTAY
| Makita Corp ADR | — | Dxmlpw | $7.3 Bil | |
MKEWF
| Makita Corp | — | Mbqtxnw | $7.2 Bil |
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