Stock Analysis Report

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Executive Summary

Smith & Nephew plc develops, manufactures, and sells medical devices worldwide. More Details

Snowflake Analysis

Established dividend payer and good value.

Similar Companies

Share Price & News

How has Smith & Nephew's share price performed over time and what events caused price changes?

Latest Share Price and Events

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

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

Market Performance

7 Day Return




GB Medical Equipment


GB Market

1 Year Return




GB Medical Equipment


GB Market

Return vs Industry: SN. underperformed the UK Medical Equipment industry which returned -9% over the past year.

Return vs Market: SN. underperformed the UK Market which returned 4.6% over the past year.

Shareholder returns

7 Day-2.5%-0.9%1.2%
30 Day-12.9%-9.1%0.7%
90 Day-11.8%-7.0%2.6%
1 Year-17.8%-19.5%-7.2%-9.0%10.6%4.6%
3 Year7.6%1.5%9.3%3.0%8.6%-4.5%
5 Year32.7%20.6%31.6%21.0%39.5%12.6%

Long-Term Price Volatility Vs. Market

How volatile is Smith & Nephew's share price compared to the market and industry in the last 5 years?

Simply Wall St News


Is Smith & Nephew undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SN. (£13.52) is trading below our estimate of fair value (£22.45)

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

Price To Earnings Ratio

PE vs Industry: SN. is good value based on its PE Ratio (36.4x) compared to the GB Medical Equipment industry average (48.4x).

PE vs Market: SN. is poor value based on its PE Ratio (36.4x) compared to the UK market (24.2x).

Price to Earnings Growth Ratio

PEG Ratio: SN. is poor value based on its PEG Ratio (1.9x)

Price to Book Ratio

PB vs Industry: SN. is good value based on its PB Ratio (3.1x) compared to the GB Medical Equipment industry average (4x).

Next Steps

Future Growth

How is Smith & Nephew forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SN.'s forecast earnings growth (18.8% per year) is above the savings rate (1%).

Earnings vs Market: SN.'s earnings (18.8% per year) are forecast to grow slower than the UK market (22.6% per year).

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

Revenue vs Market: SN.'s revenue (6.5% per year) is forecast to grow slower than the UK market (6.6% per year).

High Growth Revenue: SN.'s revenue (6.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SN.'s Return on Equity is forecast to be low in 3 years time (15%).

Next Steps

Past Performance

How has Smith & Nephew performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SN. has a large one-off loss of $134.0M impacting its December 31 2020 financial results.

Growing Profit Margin: SN.'s current net profit margins (9.8%) are lower than last year (11.7%).

Past Earnings Growth Analysis

Earnings Trend: SN.'s earnings have declined by 2.4% per year over the past 5 years.

Accelerating Growth: SN.'s has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SN. had negative earnings growth (-25.2%) over the past year, making it difficult to compare to the Medical Equipment industry average (-10.5%).

Return on Equity

High ROE: SN.'s Return on Equity (8.5%) is considered low.

Next Steps

Financial Health

How is Smith & Nephew's financial position?

Financial Position Analysis

Short Term Liabilities: SN.'s short term assets ($4.7B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: SN.'s short term assets ($4.7B) exceed its long term liabilities ($4.0B).

Debt to Equity History and Analysis

Debt Level: SN.'s debt to equity ratio (66%) is considered high.

Reducing Debt: SN.'s debt to equity ratio has increased from 37.2% to 66% over the past 5 years.

Debt Coverage: SN.'s debt is well covered by operating cash flow (26.8%).

Interest Coverage: SN.'s interest payments on its debt are well covered by EBIT (7.7x coverage).

Balance Sheet

Next Steps


What is Smith & Nephew current dividend yield, its reliability and sustainability?


Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: SN.'s dividend (2.01%) is higher than the bottom 25% of dividend payers in the UK market (1.49%).

High Dividend: SN.'s dividend (2.01%) is low compared to the top 25% of dividend payers in the UK market (4.51%).

Stability and Growth of Payments

Stable Dividend: SN.'s dividends per share have been stable in the past 10 years.

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

Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.2%), SN.'s dividend payments are covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: SN.'s dividends in 3 years are forecast to be well covered by earnings (38.7% payout ratio).

Next Steps


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


Average management tenure


Roland Diggelmann (53 yo)





Mr. Roland Diggelmann has been Chief Executive Officer of Smith & Nephew plc since November 1, 2019. Mr. Diggelmann was the Chief Executive Officer of Roche Diagnostics at Roche Holding AG since 2008 until...

CEO Compensation Analysis

Compensation vs Market: Roland's total compensation ($USD1.70M) is below average for companies of similar size in the UK market ($USD3.96M).

Compensation vs Earnings: Roland's compensation has been consistent with company performance over the past year.

Leadership Team

Roland Diggelmann
Chief Executive Officer1.33yrsUS$1.70m0.0021%
$ 245.5k
Anne-Francoise Nesmes
CFO & Executive Director0.67yrUS$799.64kno data
Mark Gladwell
President of Global Operations and Global Business Services3.17yrsno data0.00018%
$ 21.4k
Andrew Swift
Vice President of Investor Relationsno datano datano data
Catheryn O'Rourke
Chief Legal & Compliance Officer3.83yrsno data0.0072%
$ 849.3k
Joe Metzger
Senior Vice President of Marketing Services & Communications10.17yrsno datano data
Elga Lohler
Chief Human Resources Officer5.25yrsno data0.010%
$ 1.2m
Philip Cowdy
Chief Business Development & Corporate Affairs Officer7.17yrsno data0.0040%
$ 473.3k
Bradley Cannon
President of Sports Medicine & ENT3.17yrsno data0.0074%
$ 882.5k
Vasant Padmanabhan
President of Research & Development4.58yrsno data0.0052%
$ 612.1k
Steve Kane
Head of Human Resources for the USno datano datano data
Melissa Guerdan
Chief Quality & Regulatory Affairs Officer2.67yrsno data0.00015%
$ 17.8k


Average Tenure


Average Age

Experienced Management: SN.'s management team is considered experienced (3.5 years average tenure).

Board Members

Anne-Francoise Nesmes
CFO & Executive Director0.67yrUS$799.64kno data
Roberto Quarta
$ 1.2m
Erik Engstrom
Independent Non-Executive Director6.17yrsUS$94.89k0.0019%
$ 219.4k
Virginia Hilda Brunette Bottomley
Independent Non-Executive Director8.92yrsUS$94.89k0.0022%
$ 264.5k
Marc Owen
Independent Non-Executive Director3.42yrsUS$171.78k0.00089%
$ 105.6k
Angie Risley
Independent Non-Executive Director3.5yrsUS$122.19k0.00054%
$ 64.1k
C. Richard Medlock
Non-Executive Director0.92yrUS$80.61k0.000030%
$ 3.6k
Changzheng Ma
Non-Executive Director0.083yrno datano data
Robin Freestone
Senior Independent Non-Executive Director1.92yrsUS$122.19k0.0018%
$ 218.3k
Katarzyna Mazur-Hofsaess
Non-Executive Director0.33yrUS$14.34kno data
Robert White
Independent Non-Executive Director0.83yrUS$89.78k0.00071%
$ 84.2k


Average Tenure


Average Age

Experienced Board: SN.'s board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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

Smith & Nephew plc's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: Smith & Nephew plc
  • Ticker: SN.
  • Exchange: LSE
  • Founded: 1856
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: UK£11.862b
  • Shares outstanding: 877.68m
  • Website:

Number of Employees


  • Smith & Nephew plc
  • Building 5
  • Croxley Park
  • Watford
  • Hertfordshire
  • WD18 8YE
  • United Kingdom


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNNU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
NPW1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
SN.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980
SNLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1980
SNNNYSE (New York Stock Exchange)ADR EACH REPR 5 USD0.20USUSDNov 1999
NPWADB (Deutsche Boerse AG)ADR EACH REPR 5 USD0.20DEEURNov 1999


Smith & Nephew plc develops, manufactures, and sells medical devices worldwide. The company offers knee implant products for specialized knee replacement procedures; hip implants for the reconstruction of ...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 19:11
End of Day Share Price2021/03/05 00:00
Annual Earnings2020/12/31

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.