Smiths Group
Market Cap
UK£5.8b
Last Updated
2021/02/28 19:57 UTC
Data Sources
Company Financials +
Executive Summary
Smiths Group plc operates as a technology company serving the medical technology, security and defense, general industrial, energy, and space and aerospace markets worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with moderate growth potential.
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
Stable Share Price: SMIN is less volatile than 75% 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.
Market Performance
7 Day Return
-1.8%
SMIN
-3.2%
GB Industrials
-2.3%
GB Market
1 Year Return
-4.5%
SMIN
26.7%
GB Industrials
1.0%
GB Market
Return vs Industry: SMIN underperformed the UK Industrials industry which returned 26.7% over the past year.
Return vs Market: SMIN underperformed the UK Market which returned 1% over the past year.
Shareholder returns
| SMIN | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.8% | -3.2% | -2.3% |
| 30 Day | 3.2% | -0.9% | 0.3% |
| 90 Day | 0.3% | 8.9% | 4.2% |
| 1 Year | -2.0%-4.5% | 37.5%26.7% | 7.1%1.0% |
| 3 Year | 3.0%-5.7% | 39.0%19.9% | 9.7%-3.4% |
| 5 Year | 60.0%38.1% | 91.7%34.1% | 36.9%10.5% |
Long-Term 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
5 days ago | Simply Wall St
Smiths Group plc's (LON:SMIN) Dismal Stock Performance Reflects Weak Fundamentals3 weeks ago | Simply Wall St
How Much Is Smiths Group's (LON:SMIN) CEO Getting Paid?1 month ago | Simply Wall St
Calculating The Fair Value Of Smiths Group plc (LON:SMIN)Valuation
Is Smiths Group undervalued compared to its fair value and its price relative to the market?
89.24x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SMIN (£14.64) is trading above our estimate of fair value (£12.96)
Significantly Below Fair Value: SMIN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SMIN is poor value based on its PE Ratio (89.2x) compared to the XE Industrials industry average (22.9x).
PE vs Market: SMIN is poor value based on its PE Ratio (89.2x) compared to the UK market (23.9x).
Price to Earnings Growth Ratio
PEG Ratio: SMIN is poor value based on its PEG Ratio (3.3x)
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).
Next Steps
Future Growth
How is Smiths Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
27.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SMIN's forecast earnings growth (27% per year) is above the savings rate (1%).
Earnings vs Market: SMIN's earnings (27% per year) are forecast to grow faster than the UK market (23.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SMIN's revenue (3.6% per year) is forecast to grow slower than the UK market (7.3% per year).
High Growth Revenue: SMIN's revenue (3.6% 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 (12.2%).
Next Steps
Past Performance
How has Smiths Group performed over the past 5 years?
-23.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SMIN has a large one-off loss of £34.0M impacting its July 31 2020 financial results.
Growing Profit Margin: SMIN's current net profit margins (2.6%) are lower than last year (5.6%).
Past Earnings Growth Analysis
Earnings Trend: SMIN's earnings have declined by 23.6% per year over the past 5 years.
Accelerating Growth: SMIN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SMIN had negative earnings growth (-53.5%) over the past year, making it difficult to compare to the Industrials industry average (-4.5%).
Return on Equity
High ROE: SMIN's Return on Equity (2.8%) is considered low.
Next Steps
Financial Health
How is Smiths Group's financial position?
Financial Position Analysis
Short Term Liabilities: SMIN's short term assets (£2.8B) exceed its short term liabilities (£1.0B).
Long Term Liabilities: SMIN's short term assets (£2.8B) exceed its long term liabilities (£2.0B).
Debt to Equity History and Analysis
Debt Level: SMIN's debt to equity ratio (61.2%) is considered high.
Reducing Debt: SMIN's debt to equity ratio has reduced from 92% to 61.2% over the past 5 years.
Debt Coverage: SMIN's debt is well covered by operating cash flow (29.3%).
Interest Coverage: SMIN's interest payments on its debt are well covered by EBIT (5.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Smiths Group current dividend yield, its reliability and sustainability?
2.39%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SMIN's dividend (2.39%) is higher than the bottom 25% of dividend payers in the UK market (1.49%).
High Dividend: SMIN's dividend (2.39%) is low compared to the top 25% of dividend payers in the UK market (4.57%).
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 (213.3%), 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 covered by earnings (50% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Andy Smith (53 yo)
5.42yrs
Tenure
UK£2,196,000
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
Compensation vs Market: Andy's total compensation ($USD3.06M) is about average for companies of similar size in the UK market ($USD2.77M).
Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive & Executive Director | 5.42yrs | UK£2.20m | 0.086% £ 5.0m | |
| CFO & Director | 3.08yrs | UK£1.19m | 0.0097% £ 562.9k | |
| Director of Investor Relations | no data | no data | no data | |
| Group General Counsel | 3.08yrs | no data | no data | |
| Vice President of Marketing | no data | no data | no data | |
| Group HR Director | no data | no data | no data | |
| President of Smiths Detection & Asia Pacific | 6.33yrs | no data | no data | |
| Group Strategy & M&A Director and CEO of Flex-Tek and Smiths Interconnect | 2.08yrs | no data | no data | |
| President of John Crane | no data | no data | no data | |
| Chief Executive Officer of Smiths Medical | 1.58yrs | no data | no data | |
| Chief Digital Officer | no data | no data | no data | |
| Head of Innovation | no data | no data | no data |
3.1yrs
Average Tenure
53yo
Average Age
Experienced Management: SMIN's management team is considered experienced (3.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive & Executive Director | 5.42yrs | UK£2.20m | 0.086% £ 5.0m | |
| CFO & Director | 3.08yrs | UK£1.19m | 0.0097% £ 562.9k | |
| Independent Chairman of the Board | 7.25yrs | UK£546.00k | 0.0057% £ 329.0k | |
| Independent Non-Executive Director | 4.75yrs | UK£96.00k | 0.0013% £ 73.1k | |
| Independent Non-Executive Director | 8.58yrs | UK£89.00k | 0.00038% £ 22.1k | |
| Independent Non-Executive Director | 4.08yrs | UK£87.00k | 0.0010% £ 58.6k | |
| Senior Independent Director | 2.25yrs | UK£127.00k | 0.0025% £ 146.2k | |
| Independent Non-Executive Director | 2.42yrs | UK£75.00k | 0.0015% £ 85.3k | |
| Independent Non Executive Director | 0.92yr | UK£30.00k | 0.00076% £ 44.1k | |
| Independent Non-Executive Director | 0.83yr | UK£24.00k | no data |
3.6yrs
Average Tenure
64yo
Average Age
Experienced Board: SMIN's board of directors are considered experienced (3.6 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 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£5.803b
- Shares outstanding: 396.36m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SMGK.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1980 |
| SMIN | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1980 |
| QS2A | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1980 |
| SMINL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1980 |
| QS2A | BST (Boerse-Stuttgart) | Yes | Ordinary Shares | DE | EUR | Jan 1980 |
| SMGZ.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Jun 2008 |
Biography
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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/28 19:57 |
| End of Day Share Price | 2021/02/26 00:00 |
| Earnings | 2020/07/31 |
| Annual Earnings | 2020/07/31 |
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.