Smith & Nephew
Market Cap
UK£12.7b
Last Updated
2020/12/01 19:15 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 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 not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: SN.'s weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
5.9%
SN.
4.2%
GB Medical Equipment
-0.2%
GB Market
1 Year Return
-10.4%
SN.
-4.6%
GB Medical Equipment
-6.8%
GB Market
Return vs Industry: SN. underperformed the UK Medical Equipment industry which returned -8.7% over the past year.
Return vs Market: SN. matched the UK Market which returned -10.7% over the past year.
Shareholder returns
| SN. | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.9% | 4.2% | -0.2% |
| 30 Day | 12.8% | 12.3% | 14.7% |
| 90 Day | -3.4% | 0.02% | 7.6% |
| 1 Year | -8.5%-10.4% | -2.6%-4.6% | -3.1%-6.8% |
| 3 Year | 20.9%14.0% | 17.9%11.1% | 2.6%-9.9% |
| 5 Year | 50.2%36.4% | 44.4%32.7% | 31.1%1.5% |
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
Did Smith & Nephew plc (LON:SN.) Insiders Sell Shares?1 month ago | Simply Wall St
Is Smith & Nephew plc's (LON:SN.) Recent Price Movement Underpinned By Its Weak Fundamentals?3 months ago | Simply Wall St
Have Insiders Been Buying Smith & Nephew plc (LON:SN.) Shares?Valuation
Is Smith & Nephew undervalued compared to its fair value and its price relative to the market?
3.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SN. (£15.08) is trading below our estimate of fair value (£15.57)
Significantly Below Fair Value: SN. is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: SN. is poor value based on its PE Ratio (44.8x) compared to the GB Medical Equipment industry average (42.5x).
PE vs Market: SN. is poor value based on its PE Ratio (44.8x) compared to the UK market (21.1x).
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.'s PB Ratio (3.5x) is in line with the GB Medical Equipment industry average.
Next Steps
Future Growth
How is Smith & Nephew forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
24.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SN.'s forecast earnings growth (24.2% per year) is above the savings rate (1.2%).
Earnings vs Market: SN.'s earnings (24.2% per year) are forecast to grow slower than the UK market (27.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SN.'s revenue (6.6% per year) is forecast to grow slower than the UK market (6.8% per year).
High Growth Revenue: SN.'s revenue (6.6% 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 (15.1%).
Next Steps
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 $142.0M impacting its June 27 2020 financial results.
Growing Profit Margin: SN.'s current net profit margins (8.3%) are lower than last year (14.1%).
Past Earnings Growth Analysis
Earnings Trend: SN.'s earnings have grown 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 (-44%) over the past year, making it difficult to compare to the Medical Equipment industry average (-36.8%).
Return on Equity
High ROE: SN.'s Return on Equity (7.9%) 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 ($3.3B) exceed its short term liabilities ($1.5B).
Long Term Liabilities: SN.'s short term assets ($3.3B) exceed its long term liabilities ($3.1B).
Debt to Equity History and Analysis
Debt Level: SN.'s debt to equity ratio (49.2%) is considered high.
Reducing Debt: SN.'s debt to equity ratio has increased from 39.2% to 49.2% over the past 5 years.
Debt Coverage: SN.'s debt is well covered by operating cash flow (32.4%).
Interest Coverage: SN.'s interest payments on its debt are well covered by EBIT (10.4x coverage).
Balance Sheet
Next Steps
Dividend
What is Smith & Nephew current dividend yield, its reliability and sustainability?
1.86%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SN.'s dividend (1.86%) is higher than the bottom 25% of dividend payers in the UK market (1.69%).
High Dividend: SN.'s dividend (1.86%) is low compared to the top 25% of dividend payers in the UK market (4.96%).
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: At its current payout ratio (83.5%), SN.'s 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 (35.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Roland Diggelmann (53 yo)
1
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 ($USD4.56M).
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 | 1yr | US$1.49m | 0.0021% $ 263.8k | |
| CFO & Executive Director | 0.33yr | no data | no data | |
| President of Global Operations and Global Business Services | 2.83yrs | no data | 0.00018% $ 22.8k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Chief Legal & Compliance Officer | 3.5yrs | no data | 0.0071% $ 899.1k | |
| Senior Vice President of Marketing Services & Communications | 9.83yrs | no data | no data | |
| Chief Human Resources Officer | 4.92yrs | no data | 0.010% $ 1.3m | |
| Chief Business Development & Corporate Affairs Officer | 6.83yrs | no data | 0.0040% $ 507.3k | |
| President of Sports Medicine & ENT | 2.83yrs | no data | 0.0074% $ 937.2k | |
| President of Research & Development | 4.25yrs | no data | 0.0052% $ 656.9k | |
| Head of Human Resources for the US | no data | no data | no data | |
| Chief Quality & Regulatory Affairs Officer | 2.33yrs | no data | 0.00015% $ 19.0k |
3.2yrs
Average Tenure
52yo
Average Age
Experienced Management: SN.'s management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CFO & Executive Director | 0.33yr | no data | no data | |
| Chairman | 6.58yrs | US$420.24k | 0.010% $ 1.3m | |
| Independent Non-Executive Director | 5.83yrs | US$73.00k | 0.0019% $ 234.6k | |
| Independent Non-Executive Director | 8.58yrs | US$73.00k | 0.0022% $ 284.1k | |
| Independent Non-Executive Director | 3.08yrs | US$196.82k | 0.00089% $ 112.9k | |
| Independent Non-Executive Director | 3.17yrs | US$89.50k | 0.00055% $ 69.7k | |
| Non-Executive Director | 0.58yr | no data | 0.000030% $ 3.8k | |
| Independent Non-Executive Director | 5.92yrs | US$178.78k | 0.00088% $ 111.6k | |
| Senior Independent Non-Executive Director | 1.58yrs | US$93.00k | 0.0019% $ 234.6k | |
| Non-Executive Director | no data | no data | no data | |
| Independent Non-Executive Director | 0.50yr | no data | 0.00072% $ 91.3k |
3.1yrs
Average Tenure
61yo
Average Age
Experienced Board: SN.'s board of directors are considered experienced (3.1 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£12.682b
- Shares outstanding: 874.00m
- 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 | 2020/12/01 19:15 |
| End of Day Share Price | 2020/12/01 00:00 |
| Earnings | 2020/06/27 |
| 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.