| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 3/6 |
| Financial Health | 5/6 |
| Dividends | 5/6 |
SN. Stock Overview
Smith & Nephew plc, together with its subsidiaries, develops, manufactures, markets, and sells medical devices worldwide.
Rewards
Risk Analysis
SN. passed our risk checks.
Smith & Nephew Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£12.76 |
| 52 Week High | UK£16.02 |
| 52 Week Low | UK£11.52 |
| Beta | 0.38 |
| 1 Month Change | 6.82% |
| 3 Month Change | 5.80% |
| 1 Year Change | -16.38% |
| 3 Year Change | -21.72% |
| 5 Year Change | -3.84% |
| Change since IPO | 690.91% |
Recent News & Updates
Some Investors May Be Worried About Smith & Nephew's (LON:SN.) Returns On Capital
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
These 4 Measures Indicate That Smith & Nephew (LON:SN.) Is Using Debt Safely
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Shareholder Returns
| SN. | GB Medical Equipment | GB Market | |
|---|---|---|---|
| 7D | -2.1% | -0.4% | 0.2% |
| 1Y | -16.4% | -15.1% | -3.8% |
Return vs Industry: SN. underperformed the UK Medical Equipment industry which returned -15.1% over the past year.
Return vs Market: SN. underperformed the UK Market which returned -3.8% over the past year.
Price Volatility
| SN. volatility | |
|---|---|
| SN. Average Weekly Movement | 5.0% |
| Medical Equipment Industry Average Movement | 6.7% |
| Market Average Movement | 6.1% |
| 10% most volatile stocks in GB Market | 11.7% |
| 10% least volatile stocks in GB Market | 3.1% |
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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1856 | 18,369 | Deepak Nath | https://www.smith-nephew.com |
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 implants for the reconstruction of hip joints; and trauma and extremities products that include internal and external devices used in the stabilization of severe fractures and deformity correction procedures. It also provides sports medicine joint repair products for surgeons, including 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, as well as meniscal repair systems.
Smith & Nephew Fundamentals Summary
| SN. fundamental statistics | |
|---|---|
| Market Cap | US$13.59b |
| Earnings (TTM) | US$524.00m |
| Revenue (TTM) | US$5.21b |
25.9x
P/E Ratio2.6x
P/S RatioIs SN. overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SN. income statement (TTM) | |
|---|---|
| Revenue | US$5.21b |
| Cost of Revenue | US$1.51b |
| Gross Profit | US$3.70b |
| Other Expenses | US$3.17b |
| Earnings | US$524.00m |
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
Jul 28, 2022
| Earnings per share (EPS) | 0.60 |
| Gross Margin | 70.95% |
| Net Profit Margin | 10.05% |
| Debt/Equity Ratio | 56.4% |
How did SN. perform over the long term?
See historical performance and comparisonDividends
2.4%
Current Dividend Yield63%
Payout RatioValuation
Is Smith & Nephew undervalued compared to its fair value and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SN. (£12.76) is trading below our estimate of fair value (£28.38)
Significantly Below Fair Value: SN. is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SN.'s PE Ratio (25.9x) is in line with the UK Medical Equipment industry average.
PE vs Market: SN. is poor value based on its PE Ratio (25.9x) compared to the UK market (15.3x).
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 good value based on its PB Ratio (2.4x) compared to the GB Medical Equipment industry average (2.6x).
Future Growth
How is Smith & Nephew forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
14.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SN.'s forecast earnings growth (14.4% per year) is above the savings rate (0.9%).
Earnings vs Market: SN.'s earnings (14.4% per year) are forecast to grow faster than the UK market (11.2% per year).
High Growth Earnings: SN.'s earnings are forecast to grow, but not significantly.
Revenue vs Market: SN.'s revenue (4.5% per year) is forecast to grow faster than the UK market (4.1% per year).
High Growth Revenue: SN.'s revenue (4.5% 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 (15.3%).
Past Performance
How has Smith & Nephew performed over the past 5 years?
Past Performance Score
3/6Past Performance Score 3/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-12.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SN. has high quality earnings.
Growing Profit Margin: SN.'s current net profit margins (10.1%) are higher than last year (9.8%).
Past Earnings Growth Analysis
Earnings Trend: SN.'s earnings have declined by 12.6% per year over the past 5 years.
Accelerating Growth: SN.'s earnings growth over the past year (17%) exceeds its 5-year average (-12.6% per year).
Earnings vs Industry: SN. earnings growth over the past year (17%) underperformed the Medical Equipment industry 22.3%.
Return on Equity
High ROE: SN.'s Return on Equity (9.4%) is considered low.
Financial Health
How is Smith & Nephew's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: SN.'s short term assets ($4.4B) exceed its short term liabilities ($2.1B).
Long Term Liabilities: SN.'s short term assets ($4.4B) exceed its long term liabilities ($3.2B).
Debt to Equity History and Analysis
Debt Level: SN.'s net debt to equity ratio (33.3%) is considered satisfactory.
Reducing Debt: SN.'s debt to equity ratio has increased from 41.5% to 56.4% over the past 5 years.
Debt Coverage: SN.'s debt is well covered by operating cash flow (27.9%).
Interest Coverage: SN.'s interest payments on its debt are well covered by EBIT (9.6x coverage).
Balance Sheet
Dividend
What is Smith & Nephew current dividend yield, its reliability and sustainability?
Dividend Score
5/6Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.40%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SN.'s dividend (2.4%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).
High Dividend: SN.'s dividend (2.4%) is low compared to the top 25% of dividend payers in the UK market (4.85%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (62.8%), SN.'s dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (69.6%), SN.'s dividend payments are covered by cash flows.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Deepak Nath (48 yo)
0.083
Tenure
Dr. Deepak S. Nath, Ph.D. served as Head of Diagnostics at Siemens Healthineers AG since 2021 until 2022 and served as its President of Laboratory Diagnostics since 2018 until 2021 where he led a major pro...
Leadership Team
Experienced Management: SN.'s management team is considered experienced (3.1 years average tenure).
Board Members
Experienced Board: SN.'s board of directors are not considered experienced ( 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 bought more shares than they have sold 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 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
- Implied Market Cap: UK£11.111b
- Shares outstanding: 870.77m
- Website: https://www.smith-nephew.com
Number of Employees
Location
- Smith & Nephew plc
- Building 5
- Croxley Park
- Watford
- Hertfordshire
- WD18 8YE
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/15 00:00 |
| End of Day Share Price | 2022/05/13 00:00 |
| Earnings | 2021/12/31 |
| Annual Earnings | 2021/12/31 |
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.