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SMIN

Smiths GroupLSE:SMIN Stock Report

Market Cap

UK£5.7b

7D

0.2%

1Y

1.1%

Updated

19 Oct, 2021

Data

Company Financials +
SMIN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends3/6

SMIN Overview

Smiths Group plc operates as a technology company serving the medical technology, security and defense, general industrial, energy, and space and aerospace markets worldwide.

Smiths Group Competitors

Johnson & Johnson

NYSE:JNJ

US$431.4b

Raytheon Technologies

NYSE:RTX

US$136.8b

Siemens

XTRA:SIE

€112.3b

Lockheed Martin

NYSE:LMT

US$102.8b

Price History & Performance

Summary of all time highs, changes and price drops for Smiths Group
Historical stock prices
Current Share PriceUK£14.26
52 Week HighUK£13.10
52 Week LowUK£16.70
Beta0.79
1 Month Change3.94%
3 Month Change-7.97%
1 Year Change1.14%
3 Year Change11.41%
5 Year Change-1.49%
Change since IPO237.00%

Recent News & Updates

Sep 01
Is Smiths Group plc (LON:SMIN) Trading At A 39% Discount?

Is Smiths Group plc (LON:SMIN) Trading At A 39% Discount?

Does the September share price for Smiths Group plc ( LON:SMIN ) reflect what it's really worth? Today, we will...

Shareholder Returns

SMINGB IndustrialsGB Market
7D0.2%3.5%1.7%
1Y1.1%29.3%23.4%

Return vs Industry: SMIN underperformed the UK Industrials industry which returned 28.8% over the past year.

Return vs Market: SMIN underperformed the UK Market which returned 23.2% over the past year.

Price Volatility

Is SMIN's price volatile compared to industry and market?
SMIN volatility
SMIN Beta0.79
Industry Beta1.08
Market Beta1

Stable Share Price: SMIN is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SMIN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
185114,550Paul Keelhttps://www.smiths.com

Smiths Group plc operates as a technology company serving the medical technology, security and defense, general industrial, energy, and space and aerospace markets worldwide. It operates through John Crane, Smiths Detection, Flex-Tek, Smiths Interconnect divisions. The John Crane division offers mechanical seals, seal support systems, hydrodynamic bearings, packing materials, power transmission couplings, and specialized filtration systems.

Smiths Group Fundamentals Summary

How do Smiths Group's earnings and revenue compare to its market cap?
SMIN fundamental statistics
Market CapUK£5.65b
Earnings (TTM)UK£156.00m
Revenue (TTM)UK£2.41b

36.2x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMIN income statement (TTM)
RevenueUK£2.41b
Cost of RevenueUK£1.49b
Gross ProfitUK£915.00m
ExpensesUK£759.00m
EarningsUK£156.00m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.39
Gross Margin38.03%
Net Profit Margin6.48%
Debt/Equity Ratio57.0%

How did SMIN perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

96%

Payout Ratio

Does SMIN pay a reliable dividends?

See SMIN dividend history and benchmarks
When do you need to buy SMIN by to receive an upcoming dividend?
Smiths Group dividend dates
Ex Dividend DateOct 21 2021
Dividend Pay DateNov 19 2021
Days until Ex dividend1 day
Days until Dividend pay date30 days

Does SMIN pay a reliable dividends?

See SMIN dividend history and benchmarks

Valuation

Is Smiths Group undervalued compared to its fair value and its price relative to the market?

49.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SMIN (£14.26) is trading below our estimate of fair value (£27.95)

Significantly Below Fair Value: SMIN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SMIN is poor value based on its PE Ratio (36.2x) compared to the European Industrials industry average (26.1x).

PE vs Market: SMIN is poor value based on its PE Ratio (36.2x) compared to the UK market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: SMIN is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: SMIN is overvalued based on its PB Ratio (2.4x) compared to the XE Industrials industry average (1.2x).


Future Growth

How is Smiths Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

24.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMIN's forecast earnings growth (24.9% per year) is above the savings rate (0.9%).

Earnings vs Market: SMIN's earnings (24.9% per year) are forecast to grow faster than the UK market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SMIN's revenue (3.7% per year) is forecast to grow slower than the UK market (5% per year).

High Growth Revenue: SMIN's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMIN's Return on Equity is forecast to be low in 3 years time (13.7%).


Past Performance

How has Smiths Group performed over the past 5 years?

-36.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMIN has high quality earnings.

Growing Profit Margin: SMIN's current net profit margins (6.5%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: SMIN's earnings have declined by 36.5% per year over the past 5 years.

Accelerating Growth: SMIN's earnings growth over the past year (140%) exceeds its 5-year average (-36.5% per year).

Earnings vs Industry: SMIN earnings growth over the past year (140%) exceeded the Industrials industry 37.2%.


Return on Equity

High ROE: SMIN's Return on Equity (6.5%) is considered low.


Financial Health

How is Smiths Group's financial position?


Financial Position Analysis

Short Term Liabilities: SMIN's short term assets (£2.7B) exceed its short term liabilities (£987.0M).

Long Term Liabilities: SMIN's short term assets (£2.7B) exceed its long term liabilities (£1.9B).


Debt to Equity History and Analysis

Debt Level: SMIN's debt to equity ratio (57%) is considered high.

Reducing Debt: SMIN's debt to equity ratio has reduced from 84.8% to 57% over the past 5 years.

Debt Coverage: SMIN's debt is well covered by operating cash flow (38.7%).

Interest Coverage: SMIN's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


Dividend

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

2.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SMIN's dividend (2.64%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: SMIN's dividend (2.64%) is low compared to the top 25% of dividend payers in the UK market (4.03%).


Stability and Growth of Payments

Stable Dividend: SMIN's dividend payments have been volatile in the past 10 years.

Growing Dividend: SMIN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.8%), SMIN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SMIN's dividends in 3 years are forecast to be well covered by earnings (49.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Paul Keel (51 yo)

0.42

Tenure

Mr. Paul A. Keel serves as Chief Executive Officer and Executive Director at Smiths Group plc since May 25, 2021. He was Executive Vice President of Consumer Business Group at 3M Company since April 1, 201...


Leadership Team

Experienced Management: SMIN's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: SMIN's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SMIN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Smiths Group plc's 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£5.652b
  • Shares outstanding: 396.50m
  • Website: https://www.smiths.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 21:37
End of Day Share Price2021/10/19 00:00
Earnings2021/07/31
Annual Earnings2021/07/31


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.