OTCPK:SNNU.F

Stock Analysis Report

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Executive Summary

Smith & Nephew plc develops, manufactures, 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: SNNU.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.3%

SNNU.F

-1.2%

US Medical Equipment

-2.4%

US Market


1 Year Return

-20.2%

SNNU.F

24.3%

US Medical Equipment

18.2%

US Market

Return vs Industry: SNNU.F underperformed the US Medical Equipment industry which returned 24.4% over the past year.

Return vs Market: SNNU.F underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

SNNU.FIndustryMarket
7 Day-5.3%-1.2%-2.4%
30 Day-7.2%4.5%4.2%
90 Day-2.6%7.0%6.3%
1 Year-20.2%-20.2%25.3%24.3%20.9%18.2%
3 Year0.3%0.3%74.7%70.2%41.2%31.8%
5 Year4.7%4.7%152.1%132.4%84.8%63.9%

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

No news available

Valuation

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

43.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SNNU.F ($18.8) is trading above our estimate of fair value ($17.55)

Significantly Below Fair Value: SNNU.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SNNU.F is good value based on its PE Ratio (43.1x) compared to the US Medical Equipment industry average (51.1x).

PE vs Market: SNNU.F is poor value based on its PE Ratio (43.1x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: SNNU.F is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: SNNU.F is good value based on its PB Ratio (3.4x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

How is Smith & Nephew forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

23.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNNU.F's forecast earnings growth (23.6% per year) is above the savings rate (2.2%).

Earnings vs Market: SNNU.F's earnings (23.6% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SNNU.F's revenue (6.6% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: SNNU.F'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: SNNU.F's Return on Equity is forecast to be low in 3 years time (15.2%).


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: SNNU.F has a large one-off loss of $142.0M impacting its June 27 2020 financial results.

Growing Profit Margin: SNNU.F's current net profit margins (8.3%) are lower than last year (14.1%).


Past Earnings Growth Analysis

Earnings Trend: SNNU.F's earnings have grown by 2.4% per year over the past 5 years.

Accelerating Growth: SNNU.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SNNU.F had negative earnings growth (-44%) over the past year, making it difficult to compare to the Medical Equipment industry average (2.5%).


Return on Equity

High ROE: SNNU.F'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: SNNU.F's short term assets ($3.3B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: SNNU.F's short term assets ($3.3B) exceed its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: SNNU.F's debt to equity ratio (49.2%) is considered high.

Reducing Debt: SNNU.F's debt to equity ratio has increased from 39.2% to 49.2% over the past 5 years.

Debt Coverage: SNNU.F's debt is well covered by operating cash flow (32.4%).

Interest Coverage: SNNU.F'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?

1.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SNNU.F's dividend (1.94%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: SNNU.F's dividend (1.94%) is low compared to the top 25% of dividend payers in the US market (4.66%).


Stability and Growth of Payments

Stable Dividend: SNNU.F's dividends per share have been stable in the past 10 years.

Growing Dividend: SNNU.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.5%), SNNU.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SNNU.F's dividends in 3 years are forecast to be well covered by earnings (35.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Roland Diggelmann (53 yo)

0.92

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 ($USD1.49M) is below average for companies of similar size in the US market ($USD11.20M).

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

NamePositionTenureCompensationOwnership
Roland Diggelmann
Chief Executive Officer0.92yrUS$1.49m0.0021%
$ 351.9k
Anne-Francoise Nesmes
CFO & Executive Director0.25yrno datano data
Mark Gladwell
President of Global Operations and Global Business Services2.75yrsno data0.00018%
$ 30.5k
Andrew Swift
Vice President of Investor Relationsno datano datano data
Catheryn O'Rourke
Chief Legal & Compliance Officer3.42yrsno data0.0071%
$ 1.2m
Joe Metzger
Senior Vice President of Marketing Services & Communications9.75yrsno datano data
Elga Lohler
Chief Human Resources Officer4.83yrsno data0.0082%
$ 1.4m
Philip Cowdy
Chief Business Development & Corporate Affairs Officer6.75yrsno data0.0036%
$ 600.5k
Bradley Cannon
President of Sports Medicine & ENT2.75yrsno data0.0074%
$ 1.3m
Vasant Padmanabhan
President of Research & Development4.17yrsno datano data
Steve Kane
Head of Human Resources for the USno datano datano data
Melissa Guerdan
Chief Quality & Regulatory Affairs Officer2.25yrsno data0.00015%
$ 25.4k

3.1yrs

Average Tenure

52yo

Average Age

Experienced Management: SNNU.F's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anne-Francoise Nesmes
CFO & Executive Director0.25yrno datano data
Roberto Quarta
Chairman6.5yrsUS$420.24k0.0086%
$ 1.5m
Erik Engstrom
Independent Non-Executive Director5.75yrsUS$73.00k0.0019%
$ 313.0k
Virginia Hilda Brunette Bottomley
Independent Non-Executive Director8.5yrsUS$73.00k0.0022%
$ 377.2k
Marc Owen
Independent Non-Executive Director3yrsUS$196.82k0.00089%
$ 150.6k
Angie Risley
Independent Non-Executive Director3.08yrsUS$89.50k0.00055%
$ 93.0k
C. Richard Medlock
Non-Executive Director0.50yrno data0.000030%
$ 5.1k
Vinita Bali
Independent Non-Executive Director5.83yrsUS$178.78k0.00088%
$ 148.9k
Robin Freestone
Senior Independent Non-Executive Director1.5yrsUS$93.00k0.0019%
$ 313.0k
Robert White
Independent Non-Executive Director0.42yrno data0.00072%
$ 121.8k

3.0yrs

Average Tenure

61yo

Average Age

Experienced Board: SNNU.F's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SNNU.F 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: SNNU.F
  • Exchange: OTCPK
  • Founded: 1856
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: UK£13.027b
  • Listing Market Cap: UK£16.917b
  • Shares outstanding: 873.99m
  • Website: https://www.smith-nephew.com

Number of Employees


Location

  • Smith & Nephew plc
  • Building 5
  • Croxley Park
  • Watford
  • Hertfordshire
  • WD18 8YE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNNU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
NPW1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
SN.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980
SNLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1980
SNNNYSE (New York Stock Exchange)SPDN ADR NEWUSUSDNov 1999
NPWADB (Deutsche Boerse AG)SPDN ADR NEWDEEURNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 23:33
End of Day Share Price2020/10/15 00:00
Earnings2020/06/27
Annual Earnings2019/12/31


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.