{"id":31208,"date":"2023-07-04T07:17:23","date_gmt":"2023-07-04T11:17:23","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/snap-ons-golden-age-of-shareholder-value-nysesna\/"},"modified":"2023-07-04T07:17:25","modified_gmt":"2023-07-04T11:17:25","slug":"snap-ons-golden-age-of-shareholder-value-nysesna","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=31208","title":{"rendered":"Snap-on’s Golden Age Of Shareholder Value (NYSE:SNA)"},"content":{"rendered":"
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Introduction<\/h2>\n

I need to give Snap-on Incorporated (NYSE:SNA<\/span>)<\/strong> some credit. While I’ve always acknowledged its ability to generate tremendous shareholder value, I still underestimated the company’s potential – especially in light of favorable secular trends.<\/p>\n

It’s now more than a year ago since I wrote my most recent <\/span>article on this company. Back then, I highlighted its sustainable and juicy dividend.<\/span><\/p>\n

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When I started researching SNA again, I wasn’t very optimistic. That was mainly based on its poor long-term performance versus the S&P 500 – considering its relatively high volatility. However, my view on SNA quickly changed. While SNA’s growth is losing momentum, it’s by no means dead money. The company offers a more than decent dividend yield given the average S&P 500 or industrial yield, while its (average) dividend growth rate is not only very high but also sustainable.<\/em><\/p>\n<\/blockquote>\n

Unfortunately, I underestimated how well the company could perform in this current business environment. While economic growth indicators continue to decline, the stock is now at a new all-time high. SNA shares are currently up 26% year-to-date and 50% above their 52-week low.<\/p>\n

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Data by YCharts<\/figcaption><\/figure>\n<\/p>\n

In this article, we’ll discuss all of this and assess the risk\/reward at current levels.<\/p>\n

So, let’s get to it!<\/p>\n

Secular Growth – The Golden Age<\/h2>\n

With a market cap of $15 billion, Snap-on is a global leader in the manufacturing and marketing of tools, equipment, diagnostics, repair information, and systems solutions for professional users across various industries.<\/p>\n

<\/span><\/p>\n\n\n\n\n\n\n\n
Product Category ($millions)<\/th>\n2022<\/th>\n2021<\/th>\n2020<\/th>\n<\/tr>\n<\/thead>\n
Tools<\/td>\n$2,399.4<\/td>\n$2,343.0<\/td>\n$1,984.7<\/td>\n<\/tr>\n
Diagnostics, information, and management systems<\/td>\n$942.4<\/td>\n$892.5<\/td>\n$783.8<\/td>\n<\/tr>\n
Equipment<\/td>\n$1,151.0<\/td>\n$1,016.5<\/td>\n$824.0<\/td>\n<\/tr>\n
Total<\/td>\n$4,492.8<\/td>\n$4,252.0<\/td>\n$3,592.5<\/td>\n<\/tr>\n<\/table>\n

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