Taking a look at the numbers, diluted earnings per share came in at $2.47 for the quarter, which is an increase of 11.3%. Operating earnings before financial services of 19.8% so sales in the quarter were up 70 basis points. Lastly, fourth quarter sales were up 4.5% and organic sales up 3.6%. All of these short term benchmarks point to a healthy company and everything seems to be going well. The report also has a slate of full year numbers which can give you a slightly better overall picture.
Taking a look at the chart now, price has increased at a very quick rate, providing a very healthy return for people who entered back in late 2011. right now though, it appears price is going sideways just ever so slightly on the monthly time frame. This could be many things from people taking profits to the company just naturally slowing down. Either way, nothing stands out as unnatural and this could just be the normal flow buyers and sellers. Overall, the chart looks good and nothing is standing out as a red flag.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Snap On income statement, its balance sheet, and the statement of cash flows. Potential Snap On investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Snap On investors may use each financial statement separately, they are all related. The changes in Snap On's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Snap On's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Snap On
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Snap On performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Snap On shares is the value that is considered the true value of the share. If
the intrinsic value of Snap is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Snap On. Please read more on our
fundamental analysis page.
How effective is Snap On in utilizing its assets?
Snap On reports assets on its Balance Sheet. It represents the amount of Snap resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Snap On aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Industrial Machinery & Supplies & Components space. To get a better handle on how balance sheet or income statements item affect Snap volatility, please check the breakdown of all its
fundamentals.
Are Snap On Earnings Expected to grow?
The
future earnings power of Snap On involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Snap On factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Snap On
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Snap
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Snap On earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Snap On dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Snap one year expected dividend income is about USD4.35 per share.
The current year's
Dividend Payout Ratio is expected to grow to 0.32, whereas
Dividends Paid is projected to grow to (337.8
M).
Investing in dividend-paying stocks, such as Snap On is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Snap On must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Snap On. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Snap On Gross Profit
Snap On Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Snap On previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Snap On Gross Profit growth over the last 10 years. Please check Snap On's
gross profit and other
fundamental indicators for more details.
Breaking it down a bit more
Risks
For a full list of risks, you can take a look at the most recent 10-K filing and that will provide a very detailed explanation for all the risks. For now, here are a couple to keep in mind while doing your research. First, economic conditions and world events could affect their operating results. This type of risk could be limited to a region or the whole country, but it will have an impact on the company’s fundamentals either way. Secondly, the cost of raw materials to make the products could have an adverse affect on the company if the raise or fluctuate to quickly.
Conclusion
Overall, this is a solid company and the chat proves it. However, be sure to take into account the chart with fundamental data, as those combined give you the best change at formulating a reliable opinion. Also, be sure to take a look at your portfolio and ensure you have the space and risk tolerance to take on another company. If you still have questions, be sure to reach out to an investing professional as they can help point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Snap On. Please refer to our
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