AllAnalyst Report
logoMorningstarOctober 21, 2021

Snap-on Incorporated: Snap-on Continues to Benefit From Strengthening Vehicle Repair Demand

Symbols
SNA
Sector(s)
Industrials
Rating
Current Price
$214.70
Fair Value
Economic Moat
Stewardship
Summary

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 in the mobile 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. The company’s finance arm provides financing to franchisees to run their operations, which includes offering loans and leases for mobile vans.

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