Snap One Holdings Corp. (SNPO) | Investment Case

1. Company Snapshot

1.a. Company Description

Snap One Holdings Corp.provides smart living solutions in the United States and internationally.The company offers end-to-end product and software ecosystem and technology-enabled workflow solutions.

It also provides connected products, including networking, control and lighting, surveillance, and power products; entertainment products for indoor and outdoor solutions, such as media distribution products, as well as audio and video products; and infrastructure products, which include structured wiring and cable products, racks, and mounts.In addition, the company offers software solutions consisting of OvrC system that provides integrators with a remote management and monitoring solution; Control4 OS3 for command and control of smart living systems; Parasol, a subscription-based service that gives homeowners and small businesses access to a continuous remote support service; and 4Sight, a remote system management software for end consumers.It sells its through integrators and distributors, as well as through e-commerce portal.

The company was formerly known as Crackle Intermediate Corp.and changed its name to Snap One Holdings Corp.in March 2021.

The company was founded in 2005 and is headquartered in Charlotte, North Carolina.Snap One Holdings Corp.is a subsidiary of Hellman & Friedman, LLC.

Show Full description

1.b. Last Insights on SNPO

Snap One Holdings Corp. (SNPO) experienced a 31.0% performance over the past 3 months, driven by the company's acquisition by Resideo for $1.4 billion, including debt. The deal, announced on April 15, 2024, marks a significant milestone in the smart-living technology provider's history, offering synergies and expanding its presence in the smart living products and distribution market.

1.c. Company Highlights

Last Price	10.75
Change Percentage	0.09%
Open	10.74
Previous Close	10.74
Market Cap ( Millions)	823
Volume	911085
Year High	12.06
Year Low	6.7
M A 50	10.56
M A 200	8.9

FCF Yield	8.08%
Dividend Yield	0.00%
ROE	-2.82%
Debt / Equity	74.10%
Net Debt / EBIDTA	512.14%
Price To Book	1.07
Price Earnings Ratio	-38.18
Price To FCF	12.37
Price To sales	0.78
EV / EBITDA	13.51

2. Transcript Summary

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3. NewsRoom

D-Tools Secures $12M Series C Investment Led by Former Snap One CEO and StellarIQ to Accelerate Market Position as the Go-To Platform for Electronic Systems Contractors

Aug -05

Source: businesswire.com

Resideo Completes Acquisition of Snap One

Jun -14

Source: prnewswire.com

Snap One Announces Completion of Acquisition by Resideo

Jun -14

Source: globenewswire.com

Snap One to Suspend Trading of Common Stock upon Completion of Merger with Resideo

Jun -07

Source: globenewswire.com

Compared to Estimates, Snap One (SNPO) Q1 Earnings: A Look at Key Metrics

May -08

Source: Zacks Investment Research

Snap One Reports Fiscal First Quarter 2024 Results

May -07

Source: globenewswire.com

Snap One Holdings Corp. to Report Fiscal First Quarter 2024 Financial Results on Tuesday, May 7, 2024

Apr -23

Source: GlobeNewsWire

Why Snap One Holdings Stock Was Crushing It This Week

Apr -19

Source: The Motley Fool

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.51%)

6. Segments

Technology and Software Solutions Products

Expected Growth: 4.5%

Snap One Holdings Corp.'s Technology and Software Solutions Products segment growth of 4.5% is driven by increasing demand for smart home automation, rising adoption of IoT devices, and growing need for cybersecurity solutions. Additionally, the company's strategic acquisitions and partnerships, as well as its focus on innovation and R&D, contribute to its growth momentum.

Technology and Software Solutions Services

Expected Growth: 4.8%

Snap One Holdings Corp.'s Technology and Software Solutions Services segment growth of 4.8% is driven by increasing demand for smart home automation, rising adoption of IoT devices, and growing need for cybersecurity solutions. Additionally, the company's strategic acquisitions and partnerships have expanded its offerings, further fueling growth.

7. Detailed Products

Smart Home Devices

Snap One Holdings Corp. offers a range of smart home devices, including thermostats, security cameras, doorbells, and door locks, that can be controlled remotely through mobile apps.

Audio-Visual Solutions

The company provides a variety of audio-visual solutions, including speakers, amplifiers, projectors, and displays, designed for residential and commercial applications.

Networking and Wi-Fi Solutions

Snap One Holdings Corp. offers a range of networking and Wi-Fi solutions, including routers, switches, and access points, designed for reliable and high-speed connectivity.

Surveillance and Security Systems

The company provides a range of surveillance and security systems, including cameras, recorders, and alarm systems, designed for residential and commercial applications.

Home Automation and Control Systems

Snap One Holdings Corp. offers a range of home automation and control systems, including control panels, sensors, and actuators, designed for smart home automation.

Audio and Video Distribution

The company provides a range of audio and video distribution solutions, including amplifiers, processors, and switches, designed for whole-home audio and video distribution.

8. Snap One Holdings Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Snap One Holdings Corp. is medium due to the availability of alternative products and services in the smart home and commercial audio-visual industries.

Bargaining Power Of Customers

The bargaining power of customers for Snap One Holdings Corp. is low due to the company's strong brand reputation and the lack of price sensitivity among its customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Snap One Holdings Corp. is medium due to the presence of multiple suppliers in the market and the company's moderate dependence on these suppliers.

Threat Of New Entrants

The threat of new entrants for Snap One Holdings Corp. is low due to the high barriers to entry in the smart home and commercial audio-visual industries, including the need for significant capital investment and established distribution networks.

Intensity Of Rivalry

The intensity of rivalry for Snap One Holdings Corp. is high due to the presence of several established competitors in the smart home and commercial audio-visual industries, leading to a highly competitive market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	40.21%
Debt Cost	9.52%
Equity Weight	59.79%
Equity Cost	9.52%
WACC	9.52%
Leverage	67.25%

11. Quality Control: Snap One Holdings Corp. passed 5 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Upbound

A-Score: 5.4/10

Value: 7.9

Growth: 3.9

Quality: 5.4

Yield: 9.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

Climb Global Solutions

A-Score: 5.4/10

Value: 3.9

Growth: 8.2

Quality: 6.1

Yield: 2.0

Momentum: 8.0

Volatility: 4.0

1-Year Total Return ->

PC Connection

A-Score: 5.1/10

Value: 5.5

Growth: 5.8

Quality: 5.9

Yield: 2.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

ScanSource

A-Score: 4.6/10

Value: 7.3

Growth: 4.6

Quality: 5.6

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

Snap One

A-Score: 3.9/10

Value: 6.9

Growth: 6.7

Quality: 2.9

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

ClearOne

A-Score: 3.1/10

Value: 7.4

Growth: 2.1

Quality: 3.9

Yield: 5.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.31%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.52%

Snap One Holdings Corp. - US83303Y1055

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SNPO

1.c. Company Highlights

Average Quality

Fairly Valued

Medium Volatility

Earnings Miss

Revenues Miss

Average Growth

Lower Quality

Stable Momentum

Average Yield

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.51%)

6. Segments

Technology and Software Solutions Products

Expected Growth: 4.5%

Technology and Software Solutions Services

Expected Growth: 4.8%

7. Detailed Products

Smart Home Devices

Audio-Visual Solutions

Networking and Wi-Fi Solutions

Surveillance and Security Systems

Home Automation and Control Systems

Audio and Video Distribution

8. Snap One Holdings Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Snap One Holdings Corp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.75$

Current Price

10.75$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA