GURUFOCUS.COM » STOCK LIST » USA » NYSE » Snap-on Inc (NYSE:SNA) » Definitions » Piotroski F-Score
Switch to:

Snap-on Piotroski F-Score

: 5 (As of Today)
View and export this data going back to 1978. Start your Free Trial

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Snap-on has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Snap-on's Piotroski F-Score or its related term are showing as below:

SNA' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 5

During the past 13 years, the highest Piotroski F-Score of Snap-on was 9. The lowest was 2. And the median was 6.


Snap-on Piotroski F-Score Historical Data

The historical data trend for Snap-on's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Snap-on Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 7.00 5.00 5.00 8.00

Snap-on Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 8.00 8.00 7.00 5.00

Competitive Comparison

For the Tools & Accessories subindustry, Snap-on's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Snap-on Piotroski F-Score Distribution

For the Industrial Products industry and Industrials sector, Snap-on's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Snap-on's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 196.2 + 223.7 + 217.4 + 231.5 = $869 Mil.
Cash Flow from Operations was 186.4 + 222.7 + 193.9 + 140.8 = $744 Mil.
Revenue was 1125 + 1195.2 + 1185.5 + 1223 = $4,729 Mil.
Gross Profit was 591.3 + 600.6 + 604.7 + 618.8 = $2,415 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(6791.6 + 6580.9 + 6759.7 + 6895.2 + 6864.3) / 5 = $6778.34 Mil.
Total Assets at the begining of this year (Jun21) was $6,792 Mil.
Long-Term Debt & Capital Lease Obligation was $1,223 Mil.
Total Current Assets was $3,231 Mil.
Total Current Liabilities was $986 Mil.
Net Income was 179.7 + 208.9 + 192.6 + 208 = $789 Mil.

Revenue was 1027.4 + 1167.8 + 1113.2 + 1168.3 = $4,477 Mil.
Gross Profit was 535.1 + 584.7 + 578.9 + 612 = $2,311 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(6113.5 + 6267.6 + 6557.3 + 6673.5 + 6791.6) / 5 = $6480.7 Mil.
Total Assets at the begining of last year (Jun20) was $6,114 Mil.
Long-Term Debt & Capital Lease Obligation was $1,217 Mil.
Total Current Assets was $3,150 Mil.
Total Current Liabilities was $1,222 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Snap-on's current Net Income (TTM) was 869. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Snap-on's current Cash Flow from Operations (TTM) was 744. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=868.8/6791.6
=0.12792273

ROA (Last Year)=Net Income/Total Assets (Jun20)
=789.2/6113.5
=0.12909136

Snap-on's return on assets of this year was 0.12792273. Snap-on's return on assets of last year was 0.12909136. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Snap-on's current Net Income (TTM) was 869. Snap-on's current Cash Flow from Operations (TTM) was 744. ==> 744 <= 869 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=1223.1/6778.34
=0.18044241

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=1216.7/6480.7
=0.18774206

Snap-on's gearing of this year was 0.18044241. Snap-on's gearing of last year was 0.18774206. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=3230.7/986.1
=3.27623973

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=3149.7/1222.1
=2.577285

Snap-on's current ratio of this year was 3.27623973. Snap-on's current ratio of last year was 2.577285. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Snap-on's number of shares in issue this year was 54.239. Snap-on's number of shares in issue last year was 55.308. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2415.4/4728.7
=0.51079578

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2310.7/4476.7
=0.51616146

Snap-on's gross margin of this year was 0.51079578. Snap-on's gross margin of last year was 0.51616146. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=4728.7/6791.6
=0.69625714

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=4476.7/6113.5
=0.73226466

Snap-on's asset turnover of this year was 0.69625714. Snap-on's asset turnover of last year was 0.73226466. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+0+1+1+1+0+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Snap-on has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Snap-on  (NYSE:SNA) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Snap-on Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Snap-on's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Snap-on Business Description

Snap-on logo
Address
2801 80th Street, Kenosha, WI, USA, 53143
Snap-on is a manufacturer of premium tools and software for repair professionals. 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.
Executives
Ozolins Marty V. officer: Vice President & Controller 2801 80TH STREET KENOSHA WI 53143
Arregui Jesus officer: Sr VP & President - Commercial 2801 80TH STREET KENOSHA WI 53143
Chambers Timothy L officer: Sr VP & Pres - Tools 2801 80TH STREET KENOSHA WI 53143
Miller Richard Thomas officer: VP, Gen Counsel & Secretary 2801 80TH STREET KENOSHA WI 53143
Lemerand June C officer: VP & Chief Information Officer 2801 80TH STREET KENOSHA WI 53143
Strege Richard K officer: Vice President & Controller 2801 80TH STREET KENOSHA WI 53143
Adams David Charles director C/O CURTISS-WRIGHT CORPORATION 4 BECKER FARM ROAD ROSELAND NJ 07068
Banerjee Anup R officer: Sr VP & Chief Devel. Officer 2801 80TH STREET KENOSHA WI 53143
Stebbins Donald J director C/O WABCO HOLDINGS INC. ONE CENTENNIAL AVENUE PISCATAWAY NJ 08855
Gillis Ruth Ann M director 10 SOUTH DEERBORN STREET 37TH FLOOR CHICAGO IL 80603
Knueppel Henry W director 200 STATE STREET BELOIT WI 53511
Sherrill Gregg M director 5757 N. GREEN BAY AVENUE P.O. BOX 591 MILWAUKEE WI 53201-0591
Pagliari Aldo John officer: SVP-Finance & CFO 2801 80TH STREET KENOSHA WI 53143
Jones Nathan J director DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Lehman William Dudley director

Snap-on Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)