Snap-on is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. Products and services include hand and power tools, tool storage, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as for customers in industries, including aviation and aerospace, agriculture, construction, mining, natural resources, and technical education. Co. also provides financing programs designed to facilitate the sales of its products. Co.'s reportable business segments are: the Commercial & Industrial Group; the Snap-on Tools Group; the Repair Systems & Information Group; and Financial Services.
SNA’s moat is dug from its strong brand and innovation. SNA has an excellent reputation. This reputation with vehicle repair technicians is a valuable part of the brand equity.
Snap-on has been performing well. Results were evidenced by strong ongoing across-the-board demand for its product offerings. Snap-on to continue to reap the rewards of its ``Value Creation'' process, which helped boost operating margins throughout last year and should continue to do the same in 2015. The stock has moved in tandem with the operating performance and fundamentals. The stock looks to be at fair value but price momentum (relative strength) could push the share price further in 2015.
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Broad portfolio catering to a large customer base
Strong revenue and profit growth
Overdependence on the US market
Risks concerning environmental regulations Uncertainty regarding the economic recovery in Europe
Improving housing construction market in the US
Rising immigrant population
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