LSE:SMIN

Stock Analysis Report

Executive Summary

Smiths Group plc operates as a technology company severing the medical technology, security and defense, general industrial, oil and gas, and space and commercial aerospace markets worldwide.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Smiths Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.4%

LSE:SMIN

0.1%

GB Industrials

0.2%

GB Market


1 Year Return

-1.5%

LSE:SMIN

-1.7%

GB Industrials

-2.0%

GB Market

SMIN outperformed the Industrials industry which returned -11.1% over the past year.

SMIN matched the United Kingdom of Great Britain and Northern Ireland Market (-2%) over the past year.


Share holder returns

SMINIndustryMarket
7 Day-0.4%0.1%0.2%
30 Day4.8%0.9%1.1%
90 Day2.7%1.2%0.1%
1 Year1.8%-1.5%0.9%-1.7%2.4%-2.0%
3 Year40.2%28.2%21.3%13.2%27.2%11.2%
5 Year48.4%26.0%77.2%55.2%34.0%6.4%

Price Volatility Vs. Market

How volatile is Smiths Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Smiths Group undervalued based on future cash flows and its price relative to the stock market?

21.43x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Smiths Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Smiths Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Smiths Group is good value based on earnings compared to the Europe Industrials industry average.

Smiths Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Smiths Group is poor value based on expected growth next year.


Price Based on Value of Assets

Smiths Group is overvalued based on assets compared to the Europe Industrials industry average.


Next Steps

Future Growth

How is Smiths Group expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Smiths Group's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

Smiths Group's earnings are expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).

Smiths Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Smiths Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Smiths Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Smiths Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Smiths Group performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Smiths Group's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Smiths Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Smiths Group's 1-year earnings growth is negative, it can't be compared to the Europe Industrials industry average.


Return on Equity

Smiths Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Smiths Group used its assets more efficiently than the Europe Industrials industry average last year based on Return on Assets.


Return on Capital Employed

Smiths Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Smiths Group's financial position?


Financial Position Analysis

Smiths Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Smiths Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Smiths Group's level of debt (65.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (88.1% vs 65.4% today).

Debt is well covered by operating cash flow (26%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

What is Smiths Group's current dividend yield, its reliability and sustainability?

3.09%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Smiths Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).

Smiths Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

What is the CEO of Smiths Group's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Andy Smith (52yo)

3.8yrs

Tenure

UK£3,282,000

Compensation

Mr. Andrew Reynolds Smith, also known as Andy, has been Chief Executive and Director of Smiths Group plc since September 25, 2015. Mr. Smith served as the Chief Executive GKN Automotive at GKN plc. He serv ...


CEO Compensation Analysis

Andy's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Andy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.5yrs

Average Tenure

52yo

Average Age

The average tenure for the Smiths Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

63yo

Average Age

The average tenure for the Smiths Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Smiths Group individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUK£12,50201 May 19
George Buckley
EntityIndividual
Role
Chairman of the Board
Shares817
Max PriceUK£15.30
BuyUK£12,50801 Nov 18
George Buckley
EntityIndividual
Role
Chairman of the Board
Shares901
Max PriceUK£13.88
BuyUK£33,87119 Oct 18
William Seeger
EntityIndividual
Role
Lead Director
Shares2,500
Max PriceUK£13.55
SellUK£699,27010 Oct 18
Andrew Smith
EntityIndividual
Role
Chief Executive & Executive Director
Member of the Board of Directors
Shares47,468
Max PriceUK£14.73
BuyUK£29,96026 Sep 18
Noel Tata
EntityIndividual
Role
Member of the Board of Directors
Shares2,000
Max PriceUK£14.98

Ownership Breakdown


Management Team

  • Julian David Fagge

    Director of Group Strategy & M&A and President of Flex-Tek

    • Tenure: 0.5yrs
  • Roland Carter (52yo)

    President of Smiths Detection & Asia Pacific

    • Tenure: 4.8yrs
  • Craig Barry

    Vice President of Marketing

  • Philippe Roman

    Group Operations Director

  • Jemma Spalton

    Director of Investor Relations

  • John Shipsey

    CFO & Director

    • Tenure: 1.5yrs
    • Compensation: £2.22m
  • Mel Rowlands

    Group General Counsel

    • Tenure: 1.5yrs
  • Sheena Mackay

    Group HR Director

  • Andy Smith (52yo)

    Chief Executive & Executive Director

    • Tenure: 3.8yrs
    • Compensation: £3.28m
  • Jean Vernet (57yo)

    President of John Crane


Board Members

  • Noel Tata (63yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: £119.00k
  • Bill Seeger (67yo)

    Senior Independent Director

    • Tenure: 0.7yrs
    • Compensation: £1.38m
  • George Buckley (72yo)

    Chairman

    • Tenure: 5.7yrs
    • Compensation: £498.00k
  • Mark Seligman (63yo)

    Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: £96.00k
  • John Shipsey

    CFO & Director

    • Tenure: 1.5yrs
    • Compensation: £2.22m
  • Bruno Francois Angelici (72yo)

    Independent Non-Executive Director

    • Tenure: 9.0yrs
    • Compensation: £85.00k
  • Ann Dowling (66yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Olivier Bohuon (60yo)

    Independent Non-Executive Director

    • Tenure: 1.0yrs
    • Compensation: £6.00k
  • Andy Smith (52yo)

    Chief Executive & Executive Director

    • Tenure: 3.8yrs
    • Compensation: £3.28m
  • Tanya Fratto (58yo)

    Independent Non-Executive Director

    • Tenure: 7.0yrs
    • Compensation: £141.00k

Company Information

Smiths Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Smiths Group plc
  • Ticker: SMIN
  • Exchange: LSE
  • Founded: 1851
  • Industry: industrial conglomerates
  • Sector: capital goods
  • Market Cap: UK£6.280b
  • Shares outstanding: 395.95m
  • Website: Click here

Number of Employees


Location

  • Smiths Group plc
  • 11-12 St James’s Square
  • 4th Floor
  • London
  • Greater London
  • SW1Y 4LB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMGK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
SMINLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980
QS2ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
SMINLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1980
QS2ABST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1980
SMGZ.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 2008

Biography

Smiths Group plc operates as a technology company severing the medical technology, security and defense, general industrial, oil and gas, and space and commercial aerospace markets worldwide. The company o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/21 22:47
End of Day Share Price2019/07/19 00:00
Earnings2019/01/31
Annual Earnings2018/07/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.