Analyst Note
| Brian Bernard, CFA, CPA |We are placing our fair value estimate for Snap-On under review as we transition coverage to a new analyst. We plan to publish an updated report and valuation by early December.
1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
We are placing our fair value estimate for Snap-On under review as we transition coverage to a new analyst. We plan to publish an updated report and valuation by early December.
Snap-on is a manufacturer of premium tools and software for professional technicians. Hand tools are sold through franchisee-operated mobile vans that serve auto technicians who purchase tools at their own expense. A unique element of its business model is that franchisees bear significant risk, as they must invest as much as $375,000 in the van, inventory, and software. At the same time, franchisees extend personal credit directly to technicians on an individual tool basis. Snap-on currently operates three segments—repair systems and information, commercial and industrial, and tools—which accounted for 31%, 38%, and 31%, respectively, of its $3.7 billion 2019 manufacturing revenue. Its financing arm generates 8% of consolidated revenue and 26% of operating income.