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SMIN

Smiths Group LSE:SMIN Stock Report

Last Price

UK£16.13

Market Cap

UK£5.8b

7D

3.8%

1Y

13.8%

Updated

18 Aug, 2022

Data

Company Financials +
SMIN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends4/6

SMIN Stock 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

Price History & Performance

Summary of all time highs, changes and price drops for Smiths Group
Historical stock prices
Current Share PriceUK£16.13
52 Week HighUK£16.42
52 Week LowUK£13.23
Beta0.76
1 Month Change8.08%
3 Month Change6.54%
1 Year Change13.76%
3 Year Change1.77%
5 Year Change3.37%
Change since IPO281.21%

Recent News & Updates

Aug 03
Here's Why Smiths Group (LON:SMIN) Has Caught The Eye Of Investors

Here's Why Smiths Group (LON:SMIN) Has Caught The Eye Of Investors

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Jul 05
Smiths Group plc (LON:SMIN) Shares Could Be 24% Below Their Intrinsic Value Estimate

Smiths Group plc (LON:SMIN) Shares Could Be 24% Below Their Intrinsic Value Estimate

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

Shareholder Returns

SMINGB IndustrialsGB Market
7D3.8%-0.5%0.6%
1Y13.8%-17.4%-7.0%

Return vs Industry: SMIN exceeded the UK Industrials industry which returned -20.3% over the past year.

Return vs Market: SMIN exceeded the UK Market which returned -9% over the past year.

Price Volatility

Is SMIN's price volatile compared to industry and market?
SMIN volatility
SMIN Average Weekly Movement3.5%
Industrials Industry Average Movement5.0%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.9%
10% least volatile stocks in GB Market2.7%

Stable Share Price: SMIN is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SMIN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
185114,500Paul 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, and Smiths Medical 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£5.83b
Earnings (TTM)UK£250.00m
Revenue (TTM)UK£2.45b

23.3x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMIN income statement (TTM)
RevenueUK£2.45b
Cost of RevenueUK£1.50b
Gross ProfitUK£950.00m
Other ExpensesUK£700.00m
EarningsUK£250.00m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

Sep 23, 2022

Earnings per share (EPS)0.69
Gross Margin38.81%
Net Profit Margin10.21%
Debt/Equity Ratio43.2%

How did SMIN perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

61%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SMIN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SMIN?

Other financial metrics that can be useful for relative valuation.

SMIN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.3x
Enterprise Value/EBITDA12.3x
PEG Ratio5.9x

Price to Earnings Ratio vs Peers

How does SMIN's PE Ratio compare to its peers?

SMIN PE Ratio vs Peers
The above table shows the PE ratio for SMIN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.4x
DCC DCC
16.6x9.2%UK£5.2b
RS1 RS Group
23.6x7.6%UK£5.4b
WEIR Weir Group
23.9x13.7%UK£4.1b
SPX Spirax-Sarco Engineering
37.5x10.9%UK£8.4b
SMIN Smiths Group
23.3x3.9%UK£5.8b

Price-To-Earnings vs Peers: SMIN is good value based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (25.4x).


Price to Earnings Ratio vs Industry

How does SMIN's PE Ratio compare vs other companies in the European Industrials Industry?

Price-To-Earnings vs Industry: SMIN is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the European Industrials industry average (17.8x)


Price to Earnings Ratio vs Fair Ratio

What is SMIN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SMIN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.3x
Fair PE Ratio21.6x

Price-To-Earnings vs Fair Ratio: SMIN is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the estimated Fair Price-To-Earnings Ratio (21.6x).


Share Price vs Fair Value

What is the Fair Price of SMIN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SMIN (£16.13) is trading below our estimate of fair value (£18.49)

Significantly Below Fair Value: SMIN is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


3.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMIN's forecast earnings growth (3.9% per year) is above the savings rate (0.9%).

Earnings vs Market: SMIN's earnings (3.9% per year) are forecast to grow slower than the UK market (9.8% per year).

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

Revenue vs Market: SMIN's revenue (3.6% per year) is forecast to grow slower than the UK market (4.6% 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 (12.1%).


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Past Performance

How has Smiths Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-32.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SMIN has high quality earnings.

Growing Profit Margin: SMIN's current net profit margins (10.2%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: SMIN's earnings have declined by 32.3% per year over the past 5 years.

Accelerating Growth: SMIN's earnings growth over the past year (233.3%) exceeds its 5-year average (-32.3% per year).

Earnings vs Industry: SMIN earnings growth over the past year (233.3%) exceeded the Industrials industry 52.5%.


Return on Equity

High ROE: SMIN's Return on Equity (7.9%) is considered low.


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Financial Health

How is Smiths Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SMIN's short term assets (£2.9B) exceed its short term liabilities (£1.1B).

Long Term Liabilities: SMIN's short term assets (£2.9B) exceed its long term liabilities (£1.6B).


Debt to Equity History and Analysis

Debt Level: SMIN has more cash than its total debt.

Reducing Debt: SMIN's debt to equity ratio has reduced from 79.2% to 43.2% over the past 5 years.

Debt Coverage: SMIN's debt is well covered by operating cash flow (33.3%).

Interest Coverage: SMIN's interest payments on its debt are well covered by EBIT (9.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SMIN's dividend (2.38%) is higher than the bottom 25% of dividend payers in the UK market (1.88%).

High Dividend: SMIN's dividend (2.38%) is low compared to the top 25% of dividend payers in the UK market (5.23%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (60.6%), SMIN's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (40.1%), SMIN's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

0.9yrs

Average management tenure


CEO

Paul Keel (52 yo)

1.25yrs

Tenure

UK£1,189,694

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.43M) is below average for companies of similar size in the UK market ($USD3.19M).

Compensation vs Earnings: Insufficient data to compare Paul's compensation with company performance.


Leadership Team

Experienced Management: SMIN's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: SMIN's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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
  • Implied Market Cap: UK£5.831b
  • Shares outstanding: 361.58m
  • 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 Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/01/31
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.