Smith & Nephew
Market Cap
UK£11.9b
Last Updated
2021/03/07 19:11 UTC
Data Sources
Company Financials +
Executive Summary
Smith & Nephew plc develops, manufactures, and sells medical devices worldwide. More Details
Rewards
Risk Analysis
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
-2.5%
SN.
-0.9%
GB Medical Equipment
1.2%
GB Market
1 Year Return
-19.5%
SN.
-9.0%
GB Medical Equipment
4.6%
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
| SN. | Industry | Market | |
|---|---|---|---|
| 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 Year | 7.6%1.5% | 9.3%3.0% | 8.6%-4.5% |
| 5 Year | 32.7%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
6 days ago | Simply Wall St
Our Take On The Returns On Capital At Smith & Nephew (LON:SN.)2 weeks ago | Simply Wall St
Should You Use Smith & Nephew's (LON:SN.) Statutory Earnings To Analyse It?1 month ago | Simply Wall St
If You Had Bought Smith & Nephew (LON:SN.) Stock Five Years Ago, You Could Pocket A 44% Gain TodayValuation
Is Smith & Nephew undervalued compared to its fair value and its price relative to the market?
39.8%
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).
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Future Growth
How is Smith & Nephew forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
18.8%
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%).
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Past Performance
How has Smith & Nephew performed over the past 5 years?
-2.4%
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.
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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
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Dividend
What is Smith & Nephew current dividend yield, its reliability and sustainability?
2.01%
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).
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Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Roland Diggelmann (53 yo)
1.33yrs
Tenure
US$1,697,773
Compensation
Mr. Roland Diggelmann has been Chief Executive Officer of Smith & Nephew plc since November 1, 2019. Mr. Diggelmann was the Chief Executive Officer of Roche Diagnostics at Roche Holding AG since 2008 until...
CEO Compensation Analysis
Compensation vs Market: Roland's total compensation ($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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 1.33yrs | US$1.70m | 0.0021% $ 245.5k | |
| CFO & Executive Director | 0.67yr | US$799.64k | no data | |
| President of Global Operations and Global Business Services | 3.17yrs | no data | 0.00018% $ 21.4k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Legal & Compliance Officer | 3.83yrs | no data | 0.0072% $ 849.3k | |
| Senior Vice President of Marketing Services & Communications | 10.17yrs | no data | no data | |
| Chief Human Resources Officer | 5.25yrs | no data | 0.010% $ 1.2m | |
| Chief Business Development & Corporate Affairs Officer | 7.17yrs | no data | 0.0040% $ 473.3k | |
| President of Sports Medicine & ENT | 3.17yrs | no data | 0.0074% $ 882.5k | |
| President of Research & Development | 4.58yrs | no data | 0.0052% $ 612.1k | |
| Head of Human Resources for the US | no data | no data | no data | |
| Chief Quality & Regulatory Affairs Officer | 2.67yrs | no data | 0.00015% $ 17.8k |
3.5yrs
Average Tenure
52yo
Average Age
Experienced Management: SN.'s management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CFO & Executive Director | 0.67yr | US$799.64k | no data | |
| Chairman | 6.92yrs | US$583.08k | 0.010% $ 1.2m | |
| Independent Non-Executive Director | 6.17yrs | US$94.89k | 0.0019% $ 219.4k | |
| Independent Non-Executive Director | 8.92yrs | US$94.89k | 0.0022% $ 264.5k | |
| Independent Non-Executive Director | 3.42yrs | US$171.78k | 0.00089% $ 105.6k | |
| Independent Non-Executive Director | 3.5yrs | US$122.19k | 0.00054% $ 64.1k | |
| Non-Executive Director | 0.92yr | US$80.61k | 0.000030% $ 3.6k | |
| Non-Executive Director | 0.083yr | no data | no data | |
| Senior Independent Non-Executive Director | 1.92yrs | US$122.19k | 0.0018% $ 218.3k | |
| Non-Executive Director | 0.33yr | US$14.34k | no data | |
| Independent Non-Executive Director | 0.83yr | US$89.78k | 0.00071% $ 84.2k |
1.9yrs
Average Tenure
60yo
Average Age
Experienced Board: SN.'s board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
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
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: https://www.smith-nephew.com
Number of Employees
Location
- Smith & Nephew plc
- Building 5
- Croxley Park
- Watford
- Hertfordshire
- WD18 8YE
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SNNU.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1980 |
| NPW1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1980 |
| SN. | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1980 |
| SNL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1980 |
| SNN | NYSE (New York Stock Exchange) | ADR EACH REPR 5 USD0.20 | US | USD | Nov 1999 | |
| NPWA | DB (Deutsche Boerse AG) | ADR EACH REPR 5 USD0.20 | DE | EUR | Nov 1999 |
Biography
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/07 19:11 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.