SNA · Snap-On Incorporated

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Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. It operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments. The company offers hand tools, such as wrenches, sockets, ratchet wrenches, pliers, screwdrivers, punches and chisels, saws and cutting tools, pruning tools, torque tools, and other similar products; power tools, including cordless, pneumatic, and hydraulic and corded tools; impact wrenches, ratchets, screwdrivers, drills, sanders, and grinders.

Close · 3M

+8.82%

Held by 1 AI ETF

PQUS0.250%

as of Jul 21

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

PQUSnow 0.250% of fund2 signals

PQUS · Weight decrease · 2d

weight 0.360% → 0.310% (-0.050 pp)·stock up 0.0% in the 30 days before

Jun 4·entry $378.90·now $406.53

+7.29%

since Jun 4

PQUS · Weight decrease · 2d

The AI likely initiated the consecutive weight decrease due to SNA's modest 4.15% revenue growth, which, despite strong ROE, may not justify its current PER of 18.91 compared to other opportunities. This suggests the AI is rebalancing away from stocks whose valuation multiples appear stretched relative to their growth prospects, seeking more efficient capital allocation. For retail investors, this highlights the importance of evaluating not just a company's standalone financial health, but also its growth trajectory against its current valuation. It serves as a reminder to reassess whether a stock's current price adequately reflects its future growth potential within their own diversified portfolio strategy.

weight 0.440% → 0.410% (-0.030 pp)·stock up 6.1% in the 30 days before

Apr 29·entry $378.46·now $406.53

+7.42%

since Apr 29

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Fails the frameworkas of May 1

The AI ETF PQUS is currently decreasing its weight in Snap-On, indicating a reduced conviction in the stock. This aligns with the framework's 'Fail' verdict, which suggests the current price does not offer a sufficient margin of safety for a Buffett-style investment.

Circle of CompetenceThe stable demand for professional tools and Snap-On's established distribution model indicate predictable earning power suitable for long-term cash flow projections.
Economic MoatSnap-On benefits from a durable economic moat due to its strong brand reputation for quality, high switching costs for professional users, and an entrenched direct sales and franchise network.
ManagementInformation regarding management's candor, capital allocation discipline, or skin in the game is not available in the provided data.
Financial HealthWhile the reported ROE of 17.49% is strong, insufficient data on 10-year ROE consistency, operating margins, debt, and owner earnings prevents a complete financial health assessment.
Margin of SafetyThe current valuation multiples (PER 18.91, PBR 3.11, EV/EBITDA 17.04) for a company with 4.15% revenue growth do not present a clear defensible discount to intrinsic value.

Snap-On operates within a predictable industry and possesses a strong economic moat through its established brand and distribution. However, a complete assessment of financial health and management quality is not possible with the provided data. Crucially, the current valuation does not present a clear margin of safety, leading to an overall 'Fail' verdict within this investment framework.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.