company background image
SN.

Smith & Nephew LSE:SN. Stock Report

Last Price

UK£12.88

Market Cap

UK£11.2b

7D

-0.5%

1Y

-17.6%

Updated

23 May, 2022

Data

Company Financials +
SN. fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends5/6

SN. Stock Overview

Smith & Nephew plc, together with its subsidiaries, develops, manufactures, markets, and sells medical devices worldwide.

Smith & Nephew Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Smith & Nephew
Historical stock prices
Current Share PriceUK£12.88
52 Week HighUK£16.02
52 Week LowUK£11.52
Beta0.38
1 Month Change-0.27%
3 Month Change1.62%
1 Year Change-17.59%
3 Year Change-22.20%
5 Year Change-4.66%
Change since IPO698.35%

Recent News & Updates

Apr 29
Some Investors May Be Worried About Smith & Nephew's (LON:SN.) Returns On Capital

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...

Mar 26
These 4 Measures Indicate That Smith & Nephew (LON:SN.) Is Using Debt Safely

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 EquipmentGB Market
7D-0.5%-0.9%0.6%
1Y-17.6%-17.2%-2.7%

Return vs Industry: SN. matched the UK Medical Equipment industry which returned -17.7% over the past year.

Return vs Market: SN. underperformed the UK Market which returned -4% over the past year.

Price Volatility

Is SN.'s price volatile compared to industry and market?
SN. volatility
SN. Average Weekly Movement4.4%
Medical Equipment Industry Average Movement6.2%
Market Average Movement6.0%
10% most volatile stocks in GB Market11.6%
10% least volatile stocks in GB Market3.1%

Stable Share Price: SN. is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SN.'s weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
185618,369Deepak Nathhttps://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

How do Smith & Nephew's earnings and revenue compare to its market cap?
SN. fundamental statistics
Market CapUS$14.10b
Earnings (TTM)US$524.00m
Revenue (TTM)US$5.21b

26.9x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SN. income statement (TTM)
RevenueUS$5.21b
Cost of RevenueUS$1.51b
Gross ProfitUS$3.70b
Other ExpensesUS$3.17b
EarningsUS$524.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 28, 2022

Earnings per share (EPS)0.60
Gross Margin70.95%
Net Profit Margin10.05%
Debt/Equity Ratio56.4%

How did SN. perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

63%

Payout Ratio

Valuation

Is Smith & Nephew undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation 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. (£12.88) is trading below our estimate of fair value (£27.79)

Significantly Below Fair Value: SN. is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SN. is poor value based on its PE Ratio (26.9x) compared to the UK Medical Equipment industry average (26.4x).

PE vs Market: SN. is poor value based on its PE Ratio (26.9x) compared to the UK market (15.4x).


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 good value based on its PB Ratio (2.5x) compared to the GB Medical Equipment industry average (2.7x).


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

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


14.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SN.'s forecast earnings growth (14.3% per year) is above the savings rate (0.9%).

Earnings vs Market: SN.'s earnings (14.3% per year) are forecast to grow faster than the UK market (11.3% 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% 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

3/6

Past 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

5/6

Financial 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

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.32%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SN.'s dividend (2.32%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: SN.'s dividend (2.32%) is low compared to the top 25% of dividend payers in the UK market (4.86%).


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.


Discover strong dividend paying companies

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£11.216b
  • Shares outstanding: 870.80m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/23 00:00
End of Day Share Price2022/05/23 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.