Smith & Nephew
Market Cap
UK£13.6b
Last Updated
2021/06/23 01:07 UTC
Data Sources
Company Financials +
Executive Summary
Smith & Nephew plc, together with its subsidiaries, develops, manufactures, markets, and sells medical devices worldwide. More Details
Snowflake Analysis
Established dividend payer with adequate balance sheet.
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 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.
Market Performance
7 Day Return
0.1%
SN.
-0.7%
GB Medical Equipment
-1.2%
GB Market
1 Year Return
4.1%
SN.
10.4%
GB Medical Equipment
17.8%
GB Market
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.
Shareholder returns
| SN. | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.1% | -0.7% | -1.2% |
| 30 Day | -0.8% | 0.1% | 0.7% |
| 90 Day | 14.7% | 15.7% | 6.6% |
| 1 Year | 6.1%4.1% | 12.5%10.4% | 23.4%17.8% |
| 3 Year | 17.4%10.8% | 20.7%13.8% | 14.2%1.2% |
| 5 Year | 38.4%25.6% | 39.7%28.0% | 53.2%24.3% |
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 St
Be Wary Of Smith & Nephew (LON:SN.) And Its Returns On Capital4 weeks ago | Simply Wall St
Smith & Nephew (LON:SN.) Has A Pretty Healthy Balance Sheet1 month ago | Simply Wall St
A Look At The Intrinsic Value Of Smith & Nephew plc (LON:SN.)Valuation
Is Smith & Nephew undervalued compared to its fair value and its price relative to the market?
42.16x
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.
Future Growth
How is Smith & Nephew forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
19.2%
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%).
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 (13.8%).
Return on Equity
High ROE: SN.'s Return on Equity (8.5%) is considered low.
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
Dividend
What is Smith & Nephew current dividend yield, its reliability and sustainability?
1.74%
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).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Roland Diggelmann (53 yo)
1.58yrs
Tenure
US$1,697,773
Compensation
Mr. Roland D. Diggelmann serves as Director at Sonova Holding AG sic e June 15, 2021. He has been Chief Executive Officer of Smith & Nephew plc since November 1, 2019 and serves as its Director since April...
CEO Compensation Analysis
Compensation vs Market: Roland's total compensation ($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.
Leadership Team
Experienced Management: SN.'s management team is considered experienced (3.8 years average tenure).
Board Members
Experienced Board: SN.'s board of directors are not considered experienced ( 1.2 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: 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£13.616b
- Shares outstanding: 877.90m
- Website: https://www.smith-nephew.com
Number of Employees
Location
- Smith & Nephew plc
- Building 5
- Croxley Park
- Watford
- Hertfordshire
- WD18 8YE
- United Kingdom
Listings
Biography
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 |
| 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.