Smith & Nephew
Market Cap
UK£14.4b
Last Updated
2019/11/20 20:42 UTC
Data Sources
Company Financials +
Executive Summary
Smith & Nephew plc develops, manufactures, and sells medical devices worldwide.
Snowflake
Fundamentals
Excellent 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. has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.8%
SN.
-0.02%
GB Medical Equipment
-0.4%
GB Market
1 Year Return
18.5%
SN.
16.8%
GB Medical Equipment
4.0%
GB Market
Return vs Industry: SN. matched the UK Medical Equipment industry which returned 16.8% over the past year.
Return vs Market: SN. exceeded the UK Market which returned 4% over the past year.
Shareholder returns
| SN. | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | -0.02% | -0.4% |
| 30 Day | -0.9% | 0.8% | 1.5% |
| 90 Day | -14.4% | -9.3% | 3.7% |
| 1 Year | 20.6%18.5% | 19.0%16.8% | 9.4%4.0% |
| 3 Year | 60.0%51.3% | 33.3%26.3% | 21.4%6.0% |
| 5 Year | 63.7%49.2% | 61.7%48.0% | 33.0%2.8% |
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
10 hours ago | Simply Wall St
What Kind Of Shareholders Own Smith & Nephew plc (LON:SN.)?2 weeks ago | Simply Wall St
Do You Know What Smith & Nephew plc's (LON:SN.) P/E Ratio Means?3 weeks ago | Simply Wall St
If You Had Bought Smith & Nephew (LON:SN.) Stock Five Years Ago, You Could Pocket A 61% Gain TodayValuation
Is Smith & Nephew undervalued compared to its fair value and its price relative to the market?
26.73x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SN. (£16.52) is trading above our estimate of fair value (£15.04)
Significantly Below Fair Value: SN. is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SN. is good value based on its PE Ratio (26.7x) compared to the Medical Equipment industry average (29.3x).
PE vs Market: SN. is poor value based on its PE Ratio (26.7x) compared to the UK market (17x).
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 overvalued based on its PB Ratio (3.8x) compared to the GB Medical Equipment industry average (3x).
Next Steps
Future Growth
How is Smith & Nephew forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
13.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SN.'s forecast earnings growth (13.7% per year) is above the savings rate (1.2%).
Earnings vs Market: SN.'s earnings (13.7% per year) are forecast to grow faster than the UK market (12.5% per year).
High Growth Earnings: SN.'s earnings are forecast to grow, but not significantly.
Revenue vs Market: SN.'s revenue (4.8% per year) is forecast to grow faster than the UK market (3.6% per year).
High Growth Revenue: SN.'s revenue (4.8% 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 (16.6%).
Next Steps
Past Performance
How has Smith & Nephew performed over the past 5 years?
10.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SN. has high quality earnings.
Growing Profit Margin: SN.'s current net profit margins (14.1%) are lower than last year (14.7%).
Past Earnings Growth Analysis
Earnings Trend: SN.'s earnings have grown by 10.1% 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 (-2.7%) over the past year, making it difficult to compare to the Medical Equipment industry average (-4.9%).
Return on Equity
High ROE: SN.'s Return on Equity (14.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Smith & Nephew's financial position?
Financial Position Analysis
Short Term Liabilities: SN.'s short term assets ($2.9B) exceeds its short term liabilities ($1.5B)
Long Term Liabilities: SN.'s short term assets ($2.9B) exceeds its long term liabilities (2.5B)
Debt to Equity History and Analysis
Debt Level: SN.'s debt to equity ratio (40.7%) is considered high.
Reducing Debt: SN.'s debt to equity ratio has reduced from 49.1% to 40.7% over the past 5 years.
Debt Coverage: SN.'s debt is well covered by operating cash flow (53.8%).
Interest Coverage: SN.'s interest payments on its debt are well covered by EBIT (19.9x 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 1.5x debt).
Next Steps
Dividend
What is Smith & Nephew's current dividend yield, its reliability and sustainability?
1.69%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SN.'s dividend (1.69%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.96%).
High Dividend: SN.'s dividend (1.69%) is low compared to the top 25% of dividend payers in the UK market (5.37%).
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 reasonably low payout ratio (45.6%), SN.'s dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SN.'s dividends in 3 years are forecast to be well covered by earnings (36.9% payout ratio).
Next Steps
Management
What is the CEO of Smith & Nephew's salary, the management and board of directors tenure and is there insider trading?
2.7yrs
Average management tenure
CEO
Roland Diggelmann (52yo)
0yrs
Tenure
US$59,000
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 ...
Management Age and Tenure
2.7yrs
Average Tenure
51yo
Average Age
Experienced Management: SN.'s management team is considered experienced (2.7 years average tenure).
Board Age and Tenure
3.7yrs
Average Tenure
60.5yo
Average Age
Experienced Board: SN.'s board of directors are considered experienced (3.7 years average tenure).
Insider Trading
Insider Buying: SN. insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chairman of the Board Chairman |
| Shares | 2,980 |
| Max Price | US$19.39 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 201 |
| Max Price | US$19.39 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 201 |
| Max Price | US$19.39 |
| Entity | Individual |
| Role | Chief Executive Officer Chief Executive Officer |
| Shares | 261 |
| Max Price | US$19.39 |
| Entity | Individual |
| Role | Lead Director Senior Independent Non-Executive Director |
| Shares | 177 |
| Max Price | US$19.39 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 177 |
| Max Price | US$19.39 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 2,380 |
| Max Price | US$16.74 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Joe Metzger
Senior Vice President of Marketing Services & Communications
- Tenure: 8.8yrs
Graham Baker (51yo)
CFO & Executive Director
- Tenure: 2.6yrs
- Compensation: US$1.98m
Phil Cowdy (52yo)
Chief Business Development & Corporate Affairs Officer
- Tenure: 5.8yrs
Roland Diggelmann (52yo)
Chief Executive Officer
- Tenure: 0yrs
- Compensation: US$59.00k
Namal Nawana (48yo)
Executive Officer
- Tenure: 0.08yrs
- Compensation: US$3.43m
Mark Gladwell (44yo)
President of Global Operations
- Tenure: 1.8yrs
Vasant Padmanabhan (52yo)
President of Research & Development
- Tenure: 3.3yrs
Elga Lohler (51yo)
Chief Human Resources Officer
- Tenure: 3.9yrs
Brad Cannon (51yo)
President of Sports Medicine & ENT
- Tenure: 1.8yrs
Cathy O'Rourke (46yo)
Chief Legal & Compliance Officer
- Tenure: 2.5yrs
Board Members
Roberto Quarta (70yo)
Chairman
- Tenure: 5.6yrs
- Compensation: US$418.70k
Erik Engstrom (56yo)
Independent Non-Executive Director
- Tenure: 4.8yrs
- Compensation: US$69.50k
Virginia Hilda Brunette Bottomley (71yo)
Independent Non-Executive Director
- Tenure: 7.6yrs
- Compensation: US$69.50k
Marc Owen (60yo)
Independent Non-Executive Director
- Tenure: 2.1yrs
- Compensation: US$171.78k
Angie Risley (61yo)
Independent Non-Executive Director
- Tenure: 1.9yrs
- Compensation: US$83.67k
Vinita Bali (64yo)
Independent Non-Executive Director
- Tenure: 4.9yrs
- Compensation: US$171.78k
Robin Freestone (60yo)
Senior Independent Non-Executive Director
- Tenure: 0.6yrs
- Compensation: US$89.50k
Graham Baker (51yo)
CFO & Executive Director
- Tenure: 2.6yrs
- Compensation: US$1.98m
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£14.426b
- Shares outstanding: 873.27m
- 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 i ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/20 20:42 |
| End of Day Share Price | 2019/11/20 00:00 |
| Earnings | 2019/06/29 |
| Annual Earnings | 2018/12/31 |
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.