Smith & Nephew plc, together with its subsidiaries, develops, manufactures, markets, and sells medical devices worldwide. More Details
Established dividend payer with adequate balance sheet.
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 less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SN.'s weekly volatility (3%) has been stable over the past year.
7 Day Return
GB Medical Equipment
1 Year Return
GB Medical Equipment
Return vs Industry: SN. underperformed the UK Medical Equipment industry which returned 4.9% over the past year.
Return vs Market: SN. underperformed the UK Market which returned 16.7% over the past year.
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
2 weeks ago | Simply Wall StBe Wary Of Smith & Nephew (LON:SN.) And Its Returns On Capital
4 weeks ago | Simply Wall StSmith & Nephew (LON:SN.) Has A Pretty Healthy Balance Sheet
1 month ago | Simply Wall StA Look At The Intrinsic Value Of Smith & Nephew plc (LON:SN.)
Is Smith & Nephew undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SN. (£15.4) is trading above our estimate of fair value (£14.99)
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 (41.9x) compared to the UK Medical Equipment industry average (50.8x).
PE vs Market: SN. is poor value based on its PE Ratio (41.9x) compared to the UK market (24.9x).
Price to Earnings Growth Ratio
PEG Ratio: SN. is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: SN.'s PB Ratio (3.6x) is in line with the GB Medical Equipment industry average.
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 (19.2% per year) is above the savings rate (0.9%).
Earnings vs Market: SN.'s earnings (19.2% per year) are forecast to grow faster than the UK market (17.7% per year).
High Growth Earnings: SN.'s earnings are forecast to grow, but not significantly.
Revenue vs Market: SN.'s revenue (6.4% per year) is forecast to grow faster than the UK market (5.3% per year).
High Growth Revenue: SN.'s revenue (6.4% 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 (15.1%).
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 (13.8%).
Return on Equity
High ROE: SN.'s Return on Equity (8.5%) is considered low.
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 ($4.0B).
Debt to Equity History and Analysis
Debt Level: SN.'s debt to equity ratio (66%) is considered high.
Reducing Debt: SN.'s debt to equity ratio has increased from 37.2% to 66% over the past 5 years.
Debt Coverage: SN.'s debt is well covered by operating cash flow (26.8%).
Interest Coverage: SN.'s interest payments on its debt are well covered by EBIT (7.7x coverage).
What is Smith & Nephew current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SN.'s dividend (1.75%) is higher than the bottom 25% of dividend payers in the UK market (1.29%).
High Dividend: SN.'s dividend (1.75%) is low compared to the top 25% of dividend payers in the UK market (4.04%).
Stability and Growth of Payments
Stable Dividend: SN.'s dividends per share have been stable in the past 10 years.
Growing Dividend: SN.'s dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (73.2%), SN.'s dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SN.'s dividends in 3 years are forecast to be well covered by earnings (41.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Roland Diggelmann (53 yo)
Mr. Roland D. Diggelmann serves as Director at Sonova Holding AG sic e June 15, 2021. He has been Chief Executive Officer of Smith & Nephew plc since November 1, 2019 and serves as its Director since April...
CEO Compensation Analysis
Compensation vs Market: Roland's total compensation ($USD1.70M) is below average for companies of similar size in the UK market ($USD3.56M).
Compensation vs Earnings: Roland's compensation has been consistent with company performance over the past year.
Experienced Management: SN.'s management team is considered experienced (3.8 years average tenure).
Experienced Board: SN.'s board of directors are not considered experienced ( 1.2 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: SN. insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Smith & Nephew plc's company bio, employee growth, exchange listings and data sources
- Name: Smith & Nephew plc
- Ticker: SN.
- Exchange: LSE
- Founded: 1856
- Industry: Health Care Equipment
- Sector: Healthcare
- Market Cap: UK£13.616b
- Shares outstanding: 877.90m
- Website: https://www.smith-nephew.com
Number of Employees
- Smith & Nephew plc
- Building 5
- Croxley Park
- WD18 8YE
- United Kingdom
Smith & Nephew plc, together with its subsidiaries, develops, manufactures, markets, and sells medical devices worldwide. The company offers knee implant products for knee replacement procedures; hip impla...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/23 01:07|
|End of Day Share Price||2021/06/22 00:00|
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.