SMITH & NEPHEW PLC (NPW1.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:NPW1 • GB0009223206
14.19 EUR
-0.12 (-0.87%)
Last: Jan 28, 2026, 07:00 PM
Overall NPW1 gets a fundamental rating of 6 out of 10. We evaluated NPW1 against 63 industry peers in the Health Care Equipment & Supplies industry. NPW1 has an average financial health and profitability rating. NPW1 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- NPW1 had positive earnings in the past year.
- In the past year NPW1 had a positive cash flow from operations.
- NPW1 had positive earnings in each of the past 5 years.
- In the past 5 years NPW1 always reported a positive cash flow from operatings.
1.2 Ratios
- NPW1 has a Return On Assets of 4.59%. This is in the better half of the industry: NPW1 outperforms 65.08% of its industry peers.
- NPW1 has a Return On Equity of 8.87%. This is in the better half of the industry: NPW1 outperforms 63.49% of its industry peers.
- With a decent Return On Invested Capital value of 8.43%, NPW1 is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for NPW1 is below the industry average of 9.95%.
- The 3 year average ROIC (7.67%) for NPW1 is below the current ROIC(8.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 8.87% | ||
| ROIC | 8.43% |
ROA(3y)2.95%
ROA(5y)3.54%
ROE(3y)5.7%
ROE(5y)7%
ROIC(3y)7.67%
ROIC(5y)6.98%
1.3 Margins
- The Profit Margin of NPW1 (8.26%) is comparable to the rest of the industry.
- NPW1's Profit Margin has declined in the last couple of years.
- NPW1 has a Operating Margin of 14.99%. This is in the better half of the industry: NPW1 outperforms 71.43% of its industry peers.
- In the last couple of years the Operating Margin of NPW1 has declined.
- With an excellent Gross Margin value of 70.04%, NPW1 belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
- In the last couple of years the Gross Margin of NPW1 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.99% | ||
| PM (TTM) | 8.26% | ||
| GM | 70.04% |
OM growth 3Y3.51%
OM growth 5Y-5.16%
PM growth 3Y-10.98%
PM growth 5Y-9.49%
GM growth 3Y-0.41%
GM growth 5Y-1.1%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NPW1 is still creating some value.
- NPW1 has about the same amout of shares outstanding than it did 1 year ago.
- NPW1 has about the same amout of shares outstanding than it did 5 years ago.
- NPW1 has a worse debt/assets ratio than last year.
2.2 Solvency
- NPW1 has an Altman-Z score of 2.64. This is not the best score and indicates that NPW1 is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.64, NPW1 perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
- The Debt to FCF ratio of NPW1 is 4.33, which is a neutral value as it means it would take NPW1, 4.33 years of fcf income to pay off all of its debts.
- NPW1 has a better Debt to FCF ratio (4.33) than 60.32% of its industry peers.
- A Debt/Equity ratio of 0.60 indicates that NPW1 is somewhat dependend on debt financing.
- The Debt to Equity ratio of NPW1 (0.60) is worse than 65.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.33 | ||
| Altman-Z | 2.64 |
ROIC/WACC1.01
WACC8.34%
2.3 Liquidity
- NPW1 has a Current Ratio of 3.00. This indicates that NPW1 is financially healthy and has no problem in meeting its short term obligations.
- NPW1's Current ratio of 3.00 is amongst the best of the industry. NPW1 outperforms 80.95% of its industry peers.
- NPW1 has a Quick Ratio of 1.40. This is a normal value and indicates that NPW1 is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.40, NPW1 is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
- NPW1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.86%, which is quite impressive.
- NPW1 shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.22% yearly.
- NPW1 shows a small growth in Revenue. In the last year, the Revenue has grown by 5.35%.
- The Revenue has been growing slightly by 2.49% on average over the past years.
EPS 1Y (TTM)59.86%
EPS 3Y-7.63%
EPS 5Y-7.22%
EPS Q2Q%35.92%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y3.69%
Revenue growth 5Y2.49%
Sales Q2Q%4.74%
3.2 Future
- NPW1 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.92% yearly.
- NPW1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.55% yearly.
EPS Next Y18.33%
EPS Next 2Y15.42%
EPS Next 3Y11.68%
EPS Next 5Y10.92%
Revenue Next Year6.25%
Revenue Next 2Y5.74%
Revenue Next 3Y5.55%
Revenue Next 5Y5.55%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 30.19, NPW1 can be considered very expensive at the moment.
- NPW1's Price/Earnings ratio is a bit cheaper when compared to the industry. NPW1 is cheaper than 60.32% of the companies in the same industry.
- When comparing the Price/Earnings ratio of NPW1 to the average of the S&P500 Index (28.30), we can say NPW1 is valued inline with the index average.
- With a Price/Forward Earnings ratio of 14.05, NPW1 is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NPW1 indicates a rather cheap valuation: NPW1 is cheaper than 84.13% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of NPW1 to the average of the S&P500 Index (25.57), we can say NPW1 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.19 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NPW1 indicates a rather cheap valuation: NPW1 is cheaper than 92.06% of the companies listed in the same industry.
- NPW1's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NPW1 is cheaper than 96.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.04 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of NPW1 may justify a higher PE ratio.
PEG (NY)1.65
PEG (5Y)N/A
EPS Next 2Y15.42%
EPS Next 3Y11.68%
5. Dividend
5.1 Amount
- NPW1 has a Yearly Dividend Yield of 2.33%.
- NPW1's Dividend Yield is rather good when compared to the industry average which is at 0.96. NPW1 pays more dividend than 85.71% of the companies in the same industry.
- NPW1's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
- The dividend of NPW1 has a limited annual growth rate of 0.55%.
Dividend Growth(5Y)0.55%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 66.60% of the earnings are spent on dividend by NPW1. This is not a sustainable payout ratio.
- The dividend of NPW1 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.6%
EPS Next 2Y15.42%
EPS Next 3Y11.68%
SMITH & NEPHEW PLC / NPW1.DE FAQ
What is the ChartMill fundamental rating of SMITH & NEPHEW PLC (NPW1.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NPW1.DE.
What is the valuation status for NPW1 stock?
ChartMill assigns a valuation rating of 6 / 10 to SMITH & NEPHEW PLC (NPW1.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for SMITH & NEPHEW PLC?
SMITH & NEPHEW PLC (NPW1.DE) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for NPW1 stock?
The Price/Earnings (PE) ratio for SMITH & NEPHEW PLC (NPW1.DE) is 30.19 and the Price/Book (PB) ratio is 1.3.
What is the financial health of SMITH & NEPHEW PLC (NPW1.DE) stock?
The financial health rating of SMITH & NEPHEW PLC (NPW1.DE) is 5 / 10.