Small Tools and Accessories

Snap-on Incorporated (NYSE: SNA)
<The stock isFAIRLY VALUED basis my most recent $132 fair value estimate. Please See Linked Worksheet
Posted on 03/07/18

The Toro Company
I don’t know, I see these companies that spend money on acquisitions and on stock buy backs and it just makes me wonder. I mean I would be pissed to know I spent $24m buying a company only to see my y-o-y sales increase by 5% and my y-o-y cost of sales increase by 4%. Sure net earnings increased by 18%, but when you back out the 12% of earnings increases derived from income unrelated to their core business, maybe spending $24m buying an irrigation company in Germany wasn’t the best use of company dollars. Couple that bit of management wizardry with a $159m in stock repurchases, a 45% y-o-y increase, and to me it all just adds up to a stock that is going to be hard pressed to beat any sort of estimates over the next several years. I guess in this case the grass really is greener somewhere else.

The Toro Company (NYSE: TTC) – FYE 10/2017 – OVER VALUED – The stock is trading at levels above my current $37 fair value estimate – Please See Linked Worksheet

The L.S. Starrett Company, Inc. (NYSE: SCX) – FYE 06/2017 – Sell – The current market price is too high basis the current P/E, growth potential and balance sheet metrics. SEE RESEARCH NOTES

Please note that worksheets are updated basis the most current SEC 10-K ANNUAL filing.