Smith & Nephew
Market Cap
UK£12.5b
Last Updated
2020/03/29 20:52 UTC
Data Sources
Company Financials +
Executive Summary
Smith & Nephew plc develops, manufactures, and sells medical devices worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet average dividend payer.
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.'s share price has been volatile over the past 3 months.
Market Performance
7 Day Return
7.9%
SN.
7.2%
GB Medical Equipment
6.2%
GB Market
1 Year Return
-6.3%
SN.
-1.4%
GB Medical Equipment
-22.7%
GB Market
Return vs Industry: SN. underperformed the UK Medical Equipment industry which returned -1.3% over the past year.
Return vs Market: SN. exceeded the UK Market which returned -22.7% over the past year.
Shareholder returns
| SN. | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.9% | 7.2% | 6.2% |
| 30 Day | -17.9% | -15.8% | -17.8% |
| 90 Day | -22.7% | -19.4% | -27.7% |
| 1 Year | -4.6%-6.3% | 0.4%-1.4% | -18.6%-22.7% |
| 3 Year | 22.7%17.4% | 5.1%0.3% | -13.4%-24.6% |
| 5 Year | 36.5%24.5% | 36.1%24.6% | 1.3%-22.0% |
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
3 days ago | Simply Wall St
Want To Invest In Smith & Nephew plc (LON:SN.)? Here's How It Performed Lately1 week ago | Simply Wall St
A Sliding Share Price Has Us Looking At Smith & Nephew plc's (LON:SN.) P/E Ratio3 weeks ago | Simply Wall St
Smith & Nephew plc (LON:SN.) Has A ROE Of 12%Valuation
Is Smith & Nephew undervalued compared to its fair value and its price relative to the market?
34.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SN. (£14.28) is trading below our estimate of fair value (£21.63)
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 (25.8x) compared to the Medical Equipment industry average (26.9x).
PE vs Market: SN. is poor value based on its PE Ratio (25.8x) compared to the UK market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: SN. is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: SN. is overvalued based on its PB Ratio (3x) compared to the GB Medical Equipment industry average (2.9x).
Next Steps
Future Growth
How is Smith & Nephew forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
14.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SN.'s forecast earnings growth (14.7% per year) is above the savings rate (0.5%).
Earnings vs Market: SN.'s earnings (14.7% per year) are forecast to grow slower than the UK market (15.4% per year).
High Growth Earnings: SN.'s earnings are forecast to grow, but not significantly.
Revenue vs Market: SN.'s revenue (4.6% per year) is forecast to grow faster than the UK market (2.6% per year).
High Growth Revenue: SN.'s revenue (4.6% 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 (18%).
Next Steps
Past Performance
How has Smith & Nephew performed over the past 5 years?
7.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SN. has high quality earnings.
Growing Profit Margin: SN.'s current net profit margins (11.7%) are lower than last year (13.5%).
Past Earnings Growth Analysis
Earnings Trend: SN.'s earnings have grown by 7.9% 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 (-9.5%) over the past year, making it difficult to compare to the Medical Equipment industry average (-7.4%).
Return on Equity
High ROE: SN.'s Return on Equity (11.7%) 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 ($3.2B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: SN.'s short term assets ($3.2B) exceed its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: SN.'s debt to equity ratio (36.5%) is considered satisfactory.
Reducing Debt: SN.'s debt to equity ratio has reduced from 41.9% to 36.5% over the past 5 years.
Debt Coverage: SN.'s debt is well covered by operating cash flow (62.2%).
Interest Coverage: SN.'s interest payments on its debt are well covered by EBIT (17.4x coverage).
Balance Sheet
Inventory Level: SN. has a high level of physical assets or inventory.
Debt Coverage by Assets: SN.'s debt is covered by short term assets (assets are 1.7x debt).
Next Steps
Dividend
What is Smith & Nephew's current dividend yield, its reliability and sustainability?
2.12%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: SN.'s dividend (2.12%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.7%).
High Dividend: SN.'s dividend (2.12%) is low compared to the top 25% of dividend payers in the UK market (7.3%).
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 (54.6%), 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 (37.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Roland Diggelmann (52yo)
0.33
Tenure
US$1,485,559
Compensation
Mr. Roland Diggelmann has been Chief Executive Officer of Smith & Nephew plc since November 1, 2019. Mr. Diggelmann was the Chief Executive Officer of Roche Diagnostics at Roche Holding AG until September ...
CEO Compensation Analysis
Compensation vs Market: Roland's total compensation ($USD1.49M) is below average for companies of similar size in the UK market ($USD5.57M).
Compensation vs Earnings: Roland's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 0.33yr | US$1.49m | 0.00076% $94.7k | |
| CFO & Executive Director | 2.92yrs | US$2.90m | 0.0049% $608.4k | |
| President of Global Operations and Global Business Services | 2.17yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Legal & Compliance Officer | 2.83yrs | no data | no data | |
| Senior Vice President of Marketing Services & Communications | 9.17yrs | no data | no data | |
| Chief Human Resources Officer | 4.25yrs | no data | 0.0082% $1.0m | |
| Chief Business Development & Corporate Affairs Officer | 6.17yrs | no data | no data | |
| President of Sports Medicine & ENT | 2.17yrs | no data | 0.0079% $984.9k | |
| President of Research & Development | 3.58yrs | no data | no data |
3.0yrs
Average Tenure
51yo
Average Age
Experienced Management: SN.'s management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CFO & Executive Director | 2.92yrs | US$2.90m | 0.0049% $608.4k | |
| Chairman | 5.92yrs | US$420.24k | 0.0068% $847.7k | |
| Independent Non-Executive Director | 5.17yrs | US$73.00k | 0.0018% $228.1k | |
| Independent Non-Executive Director | 7.92yrs | US$73.00k | 0.0022% $274.3k | |
| Independent Non-Executive Director | 2.42yrs | US$196.82k | 0.00086% $107.2k | |
| Independent Non-Executive Director | 2.5yrs | US$89.50k | 0.00052% $64.8k | |
| Independent Non-Executive Director | 5.25yrs | US$178.78k | 0.00085% $106.0k | |
| Senior Independent Non-Executive Director | 0.92yr | US$93.00k | 0.0018% $228.1k |
4.0yrs
Average Tenure
60.5yo
Average Age
Experienced Board: SN.'s board of directors are considered experienced (4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SN. insiders have only sold shares 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£12.467b
- Shares outstanding: 873.32m
- 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 sports medicine joint repair products for surgeons, including an array of instruments, technologies, and implants necessary to perform minimally invasive surgery of the joints, such as the repair of soft tissue injuries and degenerative conditions of the knee, hip, and shoulder. It also provides arthroscopic enabling technologies for healthcare providers comprising fluid management equipment for surgical access, high definition cameras, digital image capture, scopes, light sources, and monitors to assist with visualization inside the joints, radio frequency, electromechanical and mechanical tissue resection devices, and hand instruments for removing damaged tissue. In addition, the company offers trauma and extremities products that include internal and external devices used in the stabilization of severe fractures and deformity correction procedures; knee implant products for specialized knee replacement procedures; and hip implant products for the reconstruction of hip joints. Further, it provides advanced wound care products for the treatment and prevention of acute and chronic wounds, which comprise leg, diabetic and pressure ulcers, burns, and post-operative wounds; advanced wound bioactives, including biologics and other bioactive technologies for debridement and dermal repair/regeneration; and advanced wound devices, such as traditional and single-use negative pressure wound therapy and hydrosurgery systems. Additionally, it offers meniscal repair system. It primarily serves the providers of medical and surgical treatments and services. Smith & Nephew plc was founded in 1856 and is headquartered in Watford, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/29 20:52 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.