LSE:SMIN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with proven track record and pays a dividend.


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%

SMIN

3.7%

GB Industrials

1.9%

GB Market


1 Year Return

21.4%

SMIN

2.3%

GB Industrials

2.4%

GB Market

Return vs Industry: SMIN exceeded the UK Industrials industry which returned 2.3% over the past year.

Return vs Market: SMIN exceeded the UK Market which returned 2.4% over the past year.


Shareholder returns

SMINIndustryMarket
7 Day0.4%3.7%1.9%
30 Day-5.3%2.0%-1.1%
90 Day-0.7%0.8%-1.8%
1 Year25.0%21.4%6.0%2.3%7.4%2.4%
3 Year20.0%9.7%13.2%3.0%18.2%3.7%
5 Year59.6%35.9%53.9%30.2%35.7%6.1%

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 compared to its fair value and its price relative to the market?

44.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: SMIN (£16.12) is trading above our estimate of fair value (£11.5)

Significantly Undervalued: 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 (45.6x) compared to the Industrials industry average (22.9x).

PE vs Market: SMIN is poor value based on its PE Ratio (45.6x) compared to the UK market (16.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: SMIN is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: SMIN is overvalued based on its PB Ratio (2.7x) compared to the XE Industrials industry average (1x).


Next Steps

Future Growth

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

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMIN's forecast earnings growth (18.3% per year) is above the savings rate (1.2%).

Earnings vs Market: SMIN's earnings (18.3% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: SMIN's earnings are forecast to grow, but not significantly.

Revenue vs Market: SMIN's revenue (5.7% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: SMIN's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SMIN's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Smiths Group performed over the past 5 years?

2.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SMIN's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: SMIN's earnings growth over the past year (19.7%) exceeds its 5-year average (2.9% per year).

Earnings vs Industry: SMIN earnings growth over the past year (19.7%) exceeded the Industrials industry -6.7%.


Return on Equity

High ROE: SMIN's Return on Equity (6%) is considered low.


Return on Assets

ROA vs Industry: SMIN has a higher Return on Assets than the Industrials industry average last year.


Return on Capital Employed

ROCE Improving: SMIN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Smiths Group's financial position?


Financial Position Analysis

Short Term Liabilities: SMIN's short term assets (£2.7B) exceeds its short term liabilities (£918.0M)

Long Term Liabilities: SMIN's short term assets (2.7B) exceeds its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: SMIN's debt to equity ratio (63.4%) is considered high

Reducing Debt: SMIN's debt to equity ratio has reduced from 80% to 63.4% over the past 5 years.

Debt Coverage: SMIN's debt is well covered by operating cash flow (22.9%).

Interest Coverage: SMIN's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

Inventory Level: SMIN has a low level of unsold assets or inventory.

Debt Coverage by Assets: SMIN's debt is covered by short term assets (assets are 1.789260x debt).


Next Steps

Dividend

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

2.91%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%2.0%markettop25%5.4%industryaverage3.4%forecastin3Years3.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SMIN's dividend (2.85%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: SMIN's dividend (2.85%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: SMIN's dividends per share have been stable 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 (129.8%), 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 covered by earnings (52.8% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Andy Smith (52yo)

4.1yrs

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

Compensation vs. Market: Andy's total compensation ($USD4.21M) is about average for companies of similar size in the UK market ($USD3.39M).

Compensation vs Earnings: Andy's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: SMIN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.1yrs

Average Tenure

63yo

Average Age

Experienced Board: SMIN's board of directors are considered experienced (3.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£12,51901 Aug 19
George Buckley
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares763
Max PriceUK£16.41
BuyUK£12,50201 May 19
George Buckley
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares817
Max PriceUK£15.30
BuyUK£12,50801 Nov 18
George Buckley
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares901
Max PriceUK£13.88

Ownership Breakdown


Management Team

  • Andy Smith (52yo)

    Chief Executive & Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£3.28m
  • Sheena Mackay

    Group HR Director

    • Tenure: 0yrs
  • Roland Carter (52yo)

    President of Smiths Detection & Asia Pacific

    • Tenure: 5yrs
  • Craig Barry

    Vice President of Marketing

    • Tenure: 0yrs
  • Jemma Spalton

    Director of Investor Relations

    • Tenure: 0yrs
  • Mel Rowlands

    Group General Counsel

    • Tenure: 1.8yrs
  • Julian David Fagge

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

    • Tenure: 0.8yrs
  • John Shipsey

    CFO & Director

    • Tenure: 1.8yrs
    • Compensation: UK£2.22m
  • Samit Basu

    Chief Digital Officer

    • Tenure: 0yrs
  • Keir Boxshall

    Head of Innovation

    • Tenure: 0yrs

Board Members

  • George Buckley (72yo)

    Independent Chairman of the Board

    • Tenure: 5.9yrs
    • Compensation: UK£498.00k
  • Bruno Francois Angelici (72yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: UK£85.00k
  • Mark Seligman (63yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: UK£96.00k
  • Tanya Fratto (58yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: UK£141.00k
  • Andy Smith (52yo)

    Chief Executive & Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£3.28m
  • Olivier Bohuon (60yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£6.00k
  • Noel Tata (63yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£119.00k
  • Bill Seeger (67yo)

    Senior Independent Director

    • Tenure: 0.9yrs
    • Compensation: UK£1.38m
  • Dame Dowling (66yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
  • John Shipsey

    CFO & Director

    • Tenure: 1.8yrs
    • Compensation: UK£2.22m

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£6.241b
  • Shares outstanding: 396.13m
  • 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

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, energy, and space and aerospace markets worldwide. It operates in five divisions ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:58
End of Day Share Price2019/10/17 00:00
Earnings2019/07/31
Annual Earnings2019/07/31


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.