SMITH & NEPHEW PLC -SPON ADR (SNN) Stock Fundamental Analysis
USA - NYSE:SNN - US83175M2052 - ADR
36.82 USD
+1.05 (+2.94%)
36.82 USD
0 (0%)
Taking everything into account, SNN scores 6 out of 10 in our fundamental rating. SNN was compared to 189 industry peers in the Health Care Equipment & Supplies industry. While SNN has a great profitability rating, there are some minor concerns on its financial health. SNN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SNN had positive earnings in the past year.
In the past year SNN had a positive cash flow from operations.
SNN had positive earnings in each of the past 5 years.
Each year in the past 5 years SNN had a positive operating cash flow.
1.2 Ratios
SNN has a better Return On Assets (4.59%) than 79.89% of its industry peers.
The Return On Equity of SNN (8.87%) is better than 83.60% of its industry peers.
SNN has a Return On Invested Capital of 8.43%. This is amongst the best in the industry. SNN outperforms 87.30% 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 9.01%.
The 3 year average ROIC (7.67%) for SNN 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 SNN (8.26%) is better than 80.42% of its industry peers.
In the last couple of years the Profit Margin of SNN has declined.
SNN has a Operating Margin of 14.99%. This is amongst the best in the industry. SNN outperforms 84.66% of its industry peers.
In the last couple of years the Operating Margin of SNN has declined.
SNN has a better Gross Margin (70.04%) than 79.89% of its industry peers.
SNN's Gross Margin has been stable in the last couple of years.
| 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
SNN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SNN has about the same amount of shares outstanding.
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.
2.2 Solvency
SNN has an Altman-Z score of 3.57. This indicates that SNN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.57, SNN is doing good in the industry, outperforming 70.90% 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 80.95% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that SNN is somewhat dependend on debt financing.
SNN has a Debt to Equity ratio of 0.60. This is in the lower half of the industry: SNN underperforms 64.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.33 | ||
| Altman-Z | 3.57 |
ROIC/WACC0.98
WACC8.56%
2.3 Liquidity
SNN has a Current Ratio of 3.00. This indicates that SNN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SNN (3.00) is comparable to the rest of the industry.
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 of 1.40. This is in the lower half of the industry: SNN underperforms 62.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
SNN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.86%, which is quite impressive.
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.
The Revenue has been growing slightly by 5.35% in the past year.
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 11.02% on average per year.
SNN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y26.7%
EPS Next 2Y20.18%
EPS Next 3Y12.91%
EPS Next 5Y11.02%
Revenue Next Year6.28%
Revenue Next 2Y5.84%
Revenue Next 3Y5.61%
Revenue Next 5Y5.53%
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
The Price/Earnings ratio is 31.74, which means the current valuation is very expensive for SNN.
SNN's Price/Earnings ratio is a bit cheaper when compared to the industry. SNN is cheaper than 73.02% of the companies in the same industry.
SNN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.10.
A Price/Forward Earnings ratio of 13.54 indicates a correct valuation of SNN.
88.36% of the companies in the same industry are more expensive than SNN, based on the Price/Forward Earnings ratio.
SNN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.74 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
SNN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SNN is cheaper than 86.24% of the companies in the same industry.
85.71% of the companies in the same industry are more expensive than SNN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.58 | ||
| EV/EBITDA | 11.67 |
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 decent profitability rating of SNN may justify a higher PE ratio.
SNN's earnings are expected to grow with 12.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y20.18%
EPS Next 3Y12.91%
5. Dividend
5.1 Amount
SNN has a Yearly Dividend Yield of 2.10%.
SNN's Dividend Yield is rather good when compared to the industry average which is at 1.80. SNN pays more dividend than 96.30% of the companies in the same industry.
SNN's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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.
SNN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.55%
Div Incr Years1
Div Non Decr Years2
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 2Y20.18%
EPS Next 3Y12.91%
36.82
+1.05 (+2.94%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners73.82%
Inst Owner Change-0.45%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap15.61B
Revenue(TTM)5.94B
Net Income(TTM)491.00M
Analysts76.52
Price Target39.05 (6.06%)
Short Float %0.6%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend0.37
Dividend Growth(5Y)0.55%
DP66.6%
Div Incr Years1
Div Non Decr Years2
Ex-Date
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)-0.56%
PT rev (3m)11.86%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.79%
EPS NY rev (3m)12.28%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.74 | ||
| Fwd PE | 13.54 | ||
| P/S | 2.63 | ||
| P/FCF | 19.58 | ||
| P/OCF | 13.63 | ||
| P/B | 2.82 | ||
| P/tB | 10.67 | ||
| EV/EBITDA | 11.67 |
EPS(TTM)1.16
EY3.15%
EPS(NY)2.72
Fwd EY7.39%
FCF(TTM)1.88
FCFY5.11%
OCF(TTM)2.7
OCFY7.34%
SpS14.02
BVpS13.06
TBVpS3.45
PEG (NY)1.19
PEG (5Y)N/A
Graham Number18.46
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.57 |
F-Score8
WACC8.56%
ROIC/WACC0.98
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 Y26.7%
EPS Next 2Y20.18%
EPS Next 3Y12.91%
EPS Next 5Y11.02%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y3.69%
Revenue growth 5Y2.49%
Sales Q2Q%4.74%
Revenue Next Year6.28%
Revenue Next 2Y5.84%
Revenue Next 3Y5.61%
Revenue Next 5Y5.53%
EBIT growth 1Y28.02%
EBIT growth 3Y7.32%
EBIT growth 5Y-2.8%
EBIT Next Year76.3%
EBIT Next 3Y26.82%
EBIT Next 5Y19.2%
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 of SMITH & NEPHEW PLC -SPON ADR (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 7 / 10.
Can you provide the financial health for SNN stock?
The financial health rating of SMITH & NEPHEW PLC -SPON ADR (SNN) is 5 / 10.
What is the earnings growth outlook for SMITH & NEPHEW PLC -SPON ADR?
The Earnings per Share (EPS) of SMITH & NEPHEW PLC -SPON ADR (SNN) is expected to grow by 26.7% in the next year.