SMITH & NEPHEW PLC -SPON ADR (SNN) Stock Fundamental Analysis

NYSE:SNN • US83175M2052

36.68 USD
+0.39 (+1.07%)
At close: Feb 26, 2026
36.68 USD
0 (0%)
After Hours: 2/26/2026, 8:04:00 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to SNN. SNN was compared to 185 industry peers in the Health Care Equipment & Supplies industry. While SNN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SNN has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • SNN had positive earnings in the past year.
  • SNN had a positive operating cash flow in the past year.
  • SNN had positive earnings in each of the past 5 years.
  • In the past 5 years SNN always reported a positive cash flow from operatings.
SNN Yearly Net Income VS EBIT VS OCF VS FCFSNN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

1.2 Ratios

  • SNN has a Return On Assets of 4.59%. This is amongst the best in the industry. SNN outperforms 81.08% of its industry peers.
  • SNN has a better Return On Equity (8.87%) than 83.24% of its industry peers.
  • SNN has a better Return On Invested Capital (8.43%) than 86.49% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for SNN is in line with the industry average of 8.75%.
  • The 3 year average ROIC (7.67%) for SNN is below the current ROIC(8.43%), indicating increased profibility in the last year.
Industry RankSector 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%
SNN Yearly ROA, ROE, ROICSNN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • SNN has a Profit Margin of 8.26%. This is amongst the best in the industry. SNN outperforms 81.62% of its industry peers.
  • In the last couple of years the Profit Margin of SNN has declined.
  • The Operating Margin of SNN (14.99%) is better than 83.24% of its industry peers.
  • SNN's Operating Margin has declined in the last couple of years.
  • The Gross Margin of SNN (70.04%) is better than 79.46% of its industry peers.
  • In the last couple of years the Gross Margin of SNN has remained more or less at the same level.
Industry RankSector 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%
SNN Yearly Profit, Operating, Gross MarginsSNN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

5

2. Health

2.1 Basic Checks

  • SNN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • SNN has about the same amout of shares outstanding than it did 1 year ago.
  • SNN has about the same amout of shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, SNN has a worse debt to assets ratio.
SNN Yearly Shares OutstandingSNN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
SNN Yearly Total Debt VS Total AssetsSNN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 3.60 indicates that SNN is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.60, SNN is doing good in the industry, outperforming 71.35% of the companies in the same industry.
  • The Debt to FCF ratio of SNN is 4.33, which is a neutral value as it means it would take SNN, 4.33 years of fcf income to pay off all of its debts.
  • SNN has a better Debt to FCF ratio (4.33) than 79.46% of its industry peers.
  • A Debt/Equity ratio of 0.60 indicates that SNN is somewhat dependend on debt financing.
  • The Debt to Equity ratio of SNN (0.60) is worse than 62.16% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 4.33
Altman-Z 3.6
ROIC/WACC0.99
WACC8.5%
SNN Yearly LT Debt VS Equity VS FCFSNN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 3.00 indicates that SNN has no problem at all paying its short term obligations.
  • SNN has a Current ratio of 3.00. This is comparable to the rest of the industry: SNN outperforms 56.22% of its industry peers.
  • SNN has a Quick Ratio of 1.40. This is a normal value and indicates that SNN is financially healthy and should not expect problems in meeting its short term obligations.
  • SNN has a Quick ratio (1.40) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 3
Quick Ratio 1.4
SNN Yearly Current Assets VS Current LiabilitesSNN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 59.86% over the past year.
  • Measured over the past years, SNN shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.22% on average per year.
  • SNN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.35%.
  • SNN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.49% yearly.
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

  • Based on estimates for the next years, SNN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.92% on average per year.
  • Based on estimates for the next years, SNN will show a small growth in Revenue. The Revenue will grow by 5.55% on average per year.
EPS Next Y18.33%
EPS Next 2Y15.42%
EPS Next 3Y11.68%
EPS Next 5Y10.92%
Revenue Next Year6.21%
Revenue Next 2Y5.84%
Revenue Next 3Y5.65%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SNN Yearly Revenue VS EstimatesSNN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
SNN Yearly EPS VS EstimatesSNN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3

6

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 31.62, SNN can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of SNN indicates a somewhat cheap valuation: SNN is cheaper than 73.51% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of SNN to the average of the S&P500 Index (27.21), we can say SNN is valued inline with the index average.
  • SNN is valuated correctly with a Price/Forward Earnings ratio of 14.64.
  • Based on the Price/Forward Earnings ratio, SNN is valued cheaper than 89.73% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of SNN to the average of the S&P500 Index (28.13), we can say SNN is valued slightly cheaper.
Industry RankSector Rank
PE 31.62
Fwd PE 14.64
SNN Price Earnings VS Forward Price EarningsSNN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SNN is valued cheaper than 87.57% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, SNN is valued cheaply inside the industry as 91.89% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.53
EV/EBITDA 11.83
SNN Per share dataSNN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

4.3 Compensation for Growth

  • SNN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of SNN may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)N/A
EPS Next 2Y15.42%
EPS Next 3Y11.68%

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.18%, SNN has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.20, SNN pays a better dividend. On top of this SNN pays more dividend than 96.76% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, SNN pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.18%

5.2 History

  • The dividend of SNN has a limited annual growth rate of 0.55%.
  • SNN has been paying a dividend for at least 10 years, so it has a reliable track record.
  • The dividend of SNN decreased in the last 3 years.
Dividend Growth(5Y)0.55%
Div Incr Years1
Div Non Decr Years2
SNN Yearly Dividends per shareSNN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 66.60% of the earnings are spent on dividend by SNN. This is not a sustainable payout ratio.
  • The dividend of SNN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP66.6%
EPS Next 2Y15.42%
EPS Next 3Y11.68%
SNN Yearly Income VS Free CF VS DividendSNN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
SNN Dividend Payout.SNN Dividend Payout, showing the Payout Ratio.SNN Dividend Payout.PayoutRetained Earnings

SMITH & NEPHEW PLC -SPON ADR

NYSE:SNN (2/26/2026, 8:04:00 PM)

After market: 36.68 0 (0%)

36.68

+0.39 (+1.07%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)11-06
Earnings (Next)03-02
Inst Owners74.13%
Inst Owner Change-1.58%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap15.57B
Revenue(TTM)5.94B
Net Income(TTM)491.00M
Analysts77.5
Price Target39.68 (8.18%)
Short Float %0.87%
Short Ratio4.6
Dividend
Industry RankSector Rank
Dividend Yield 2.18%
Yearly Dividend0.37
Dividend Growth(5Y)0.55%
DP66.6%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.74%
PT rev (3m)1.84%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-7.9%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.16%
Valuation
Industry RankSector Rank
PE 31.62
Fwd PE 14.64
P/S 2.62
P/FCF 19.53
P/OCF 13.6
P/B 2.81
P/tB 10.64
EV/EBITDA 11.83
EPS(TTM)1.16
EY3.16%
EPS(NY)2.51
Fwd EY6.83%
FCF(TTM)1.88
FCFY5.12%
OCF(TTM)2.7
OCFY7.35%
SpS14
BVpS13.04
TBVpS3.45
PEG (NY)1.72
PEG (5Y)N/A
Graham Number18.45
Profitability
Industry RankSector Rank
ROA 4.59%
ROE 8.87%
ROCE 9.74%
ROIC 8.43%
ROICexc 9.1%
ROICexgc 17.48%
OM 14.99%
PM (TTM) 8.26%
GM 70.04%
FCFM 13.41%
ROA(3y)2.95%
ROA(5y)3.54%
ROE(3y)5.7%
ROE(5y)7%
ROIC(3y)7.67%
ROIC(5y)6.98%
ROICexc(3y)8.09%
ROICexc(5y)7.69%
ROICexgc(3y)16.87%
ROICexgc(5y)16.94%
ROCE(3y)8.97%
ROCE(5y)8.12%
ROICexgc growth 3Y-2.43%
ROICexgc growth 5Y-8.17%
ROICexc growth 3Y4.17%
ROICexc growth 5Y-4.59%
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%
F-Score8
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 0.6
Debt/FCF 4.33
Debt/EBITDA 2.16
Cap/Depr 53.95%
Cap/Sales 5.85%
Interest Coverage 5.94
Cash Conversion 74.54%
Profit Quality 162.32%
Current Ratio 3
Quick Ratio 1.4
Altman-Z 3.6
F-Score8
WACC8.5%
ROIC/WACC0.99
Cap/Depr(3y)59.87%
Cap/Depr(5y)66.08%
Cap/Sales(3y)7.04%
Cap/Sales(5y)7.73%
Profit Quality(3y)88.41%
Profit Quality(5y)92.91%
High Growth Momentum
Growth
EPS 1Y (TTM)59.86%
EPS 3Y-7.63%
EPS 5Y-7.22%
EPS Q2Q%35.92%
EPS Next Y18.33%
EPS Next 2Y15.42%
EPS Next 3Y11.68%
EPS Next 5Y10.92%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y3.69%
Revenue growth 5Y2.49%
Sales Q2Q%4.74%
Revenue Next Year6.21%
Revenue Next 2Y5.84%
Revenue Next 3Y5.65%
Revenue Next 5Y5.55%
EBIT growth 1Y28.02%
EBIT growth 3Y7.32%
EBIT growth 5Y-2.8%
EBIT Next Year75.13%
EBIT Next 3Y25.75%
EBIT Next 5Y18.56%
FCF growth 1Y3522.73%
FCF growth 3Y8.92%
FCF growth 5Y-4.43%
OCF growth 1Y206.15%
OCF growth 3Y4.02%
OCF growth 5Y-3.31%

SMITH & NEPHEW PLC -SPON ADR / SNN FAQ

Can you provide the ChartMill fundamental rating for SMITH & NEPHEW PLC -SPON ADR?

ChartMill assigns a fundamental rating of 6 / 10 to SNN.


What is the valuation status for SNN stock?

ChartMill assigns a valuation rating of 6 / 10 to SMITH & NEPHEW PLC -SPON ADR (SNN). This can be considered as Fairly Valued.


What is the profitability of SNN stock?

SMITH & NEPHEW PLC -SPON ADR (SNN) has a profitability rating of 8 / 10.


What is the valuation of SMITH & NEPHEW PLC -SPON ADR based on its PE and PB ratios?

The Price/Earnings (PE) ratio for SMITH & NEPHEW PLC -SPON ADR (SNN) is 31.62 and the Price/Book (PB) ratio is 2.81.


Can you provide the dividend sustainability for SNN stock?

The dividend rating of SMITH & NEPHEW PLC -SPON ADR (SNN) is 5 / 10 and the dividend payout ratio is 66.6%.