SNA Value Scorecard - Snap-on

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

40/60

moderate value score

Earnings & returns

EPS Trend

4/5

Diluted EPS: $16.82 (2022), $18.76 (2023), $19.51 (2024), $19.19 (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

ROE Trend

4/5

ROE (net income / common equity): 20.3% (2022), 19.9% (2023), 19.4% (2024), 17.1% (2025). Median 19.6%, lowest 17.1%; the framework scores a median 15-20% as 4.

ROIC

4/5

ROIC of 17.7%: operating income of $1.33B divided by $7.49B of capital (total assets $8.41B minus current liabilities $918.50M), fiscal year to Jan 3, 2026, as filed in the 10-K (SEC EDGAR). The framework scores 15-20% as 4.

Profit Margins

4/5

Net margin of 19.6%; the framework scores 10-20% as 4; gross margin 51.8%, operating margin 25.4%.

Balance sheet & cash

Debt-to-Equity

5/5

Net cash: total debt $1.31B, total cash $1.64B. The framework scores a net cash position as 5.

Free Cash Flow

4/5

Free cash flow (operating cash flow minus capital expenditure): $591.00M (2022), $1.06B (2023), $1.13B (2024), $1.01B (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $6.30B (2022), $6.95B (2023), $7.58B (2024), $8.14B (2026). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

1/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $19.62 x (8.5 + 2 x 1.1) x (4.4 / 4.5) = $205.27. Current price $367.25; price is 78.9% above the model value.

DCF Value

1/5

FCF/share = $21.449, stage 1 growth = 0.5% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $82.46, PV of terminal value = $200.91, DCF value = $283.37. Current price $367.25; price is 29.6% above the model value.

Margin of Safety

1/5

Graham value $205.27 (price is 78.9% above the model value); DCF value $283.37 (price is 29.6% above the model value).

Price-to-Book

2/5

P/B of 3.14; the framework scores 3.0-5.0 as 2.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 10 of 10 years (2016-2026); lowest 16.3%, highest 23.1%.

Gross margin, each year

Between 45.6% and 46.1% over 2 years (a range of 0.5 points).

Competition, in the company’s own words · 10-K filed Feb 12, 2026

Snap-on competes on the basis of its product quality and performance, product line breadth and depth, service, brand awareness and imagery, technological innovation and availability of financing (through SOC or its international finance subsidiaries). While Snap-on does not believe that any single company competes with it across all of its product lines and distribution channels, various companies compete in one or

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

5/5

Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $2.65B paid out against $3.79B of free cash flow (pass); total debt $1.27B to $1.29B, up 2.1%, 0.9x EBITDA (pass: not up more than 10%); shares outstanding 0.05B to 0.05B, down 2.1% (pass). 4 of 4 tests passed; the framework scores that as 5.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $19.62, g = 1.1%, Y = 4.5
    IV = $205.27
    Current price $367.25 vs Graham value $205.27 — price is 78.9% above the model value.

  DCF:
    FCF/share = $21.449
    Stage 1 growth = 0.5% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $21.556 → PV $19.596
      Y2: $21.664 → PV $17.904
      Y3: $21.772 → PV $16.358
      Y4: $21.881 → PV $14.945
      Y5: $21.990 → PV $13.654
    Stage 1 PV sum = $82.46
    Terminal value at end of Y5 = $323.57
    PV of terminal value = $200.91
    DCF value = $283.37
    Current price $367.25 vs DCF value $283.37 — price is 29.6% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $367.25. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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