TBelow are today’s upgrades to Validea’s patient-investor model based on Warren Buffett’s published strategy. This strategy seeks out companies with long-term, predictable profitability and low debt that are trading at reasonable valuations.
SNAP-ON INCORPORATED (SNA) is a large-cap growth stock in the home appliance and tooling industry. The rating under our strategy based on Warren Buffett changed from 72% to 79% based on underlying company fundamentals and the valuation of the stock. A value of 80% or more usually indicates the strategy has some interest in the stock, and a value greater than 90% usually indicates a strong interest.
Company Description: Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The company’s segments include the Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group is made up of businesses serving a range of industrial and commercial customers including aerospace, natural resources, government, power generation, transportation and technical education customers. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians. The Repair Systems & Information Group consists of business activities for other professional vehicle repair customers, primarily owners and managers of independent repair shops and original equipment manufacturer (OEM) dealer services and repair shops. Financial Services encompasses the operations of its financial subsidiaries.
The following table summarizes whether the stock passes all of the tests for this strategy. Not all of the criteria in the table below are weighted equally or are independent, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.
|PREDICTABILITY OF RESULTS:||HAPPEN|
|RETURN ON EQUITY:||HAPPEN|
|INCOME ON TOTAL CAPITAL:||HAPPEN|
|FREE CASH FLOW:||HAPPEN|
|USE OF PROFIT SUPPLEMENT:||FAIL|
|RETURN INITIAL RATE:||HAPPEN|
Detailed analysis of SNAP-ON INCORPORATED
Complete Guru Analysis for SNA
Full Factors Report for SNA
More details on Validea’s Warren Buffett strategy
Stock ideas from Warren Buffett
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, becoming one of the richest men in the world. (Forbes puts his net worth at $ 37 billion.) Despite his fortune, Buffett is known for leading a humble lifestyle by billionaire standards. His primary residence remains the gray-plastered Nebraska house he bought for $ 31,500 nearly 50 years ago, according to Forbes, and his Midwestern folk way of life and love of simple pleasures – a cherry coke, a good burger and a good book are all near the top of the list – are well documented.
About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. More information about Validea can be found here
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.