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

NYSE:SNN • US83175M2052

Current stock price

32.34 USD
-0.59 (-1.79%)
At close:
32.31 USD
-0.03 (-0.09%)
Pre-Market:

This SNN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. SNN Profitability Analysis

1.1 Basic Checks

  • In the past year SNN was profitable.
  • In the past year SNN had a positive cash flow from operations.
  • Each year in the past 5 years SNN has been profitable.
  • 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 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • SNN has a better Return On Assets (5.98%) than 83.15% of its industry peers.
  • SNN has a better Return On Equity (11.82%) than 85.87% of its industry peers.
  • SNN has a Return On Invested Capital of 9.43%. This is amongst the best in the industry. SNN outperforms 88.04% of its industry peers.
  • SNN had an Average Return On Invested Capital over the past 3 years of 8.27%. This is in line with the industry average of 9.18%.
  • The 3 year average ROIC (8.27%) for SNN is below the current ROIC(9.43%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.98%
ROE 11.82%
ROIC 9.43%
ROA(3y)4.2%
ROA(5y)3.93%
ROE(3y)8.23%
ROE(5y)7.67%
ROIC(3y)8.27%
ROIC(5y)7.55%
SNN Yearly ROA, ROE, ROICSNN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 10.14%, SNN belongs to the top of the industry, outperforming 83.70% of the companies in the same industry.
  • SNN's Profit Margin has been stable in the last couple of years.
  • SNN has a better Operating Margin (16.79%) than 86.41% of its industry peers.
  • In the last couple of years the Operating Margin of SNN has grown nicely.
  • Looking at the Gross Margin, with a value of 68.01%, SNN is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
  • SNN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.79%
PM (TTM) 10.14%
GM 68.01%
OM growth 3Y11.36%
OM growth 5Y8.38%
PM growth 3Y33.35%
PM growth 5Y0.63%
GM growth 3Y-1.41%
GM growth 5Y-0.53%
SNN Yearly Profit, Operating, Gross MarginsSNN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

6

2. SNN Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SNN is still creating some value.
  • SNN has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for SNN has been reduced compared to 5 years ago.
  • Compared to 1 year ago, SNN has an improved debt to assets ratio.
SNN Yearly Shares OutstandingSNN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • SNN has an Altman-Z score of 3.47. This indicates that SNN is financially healthy and has little risk of bankruptcy at the moment.
  • SNN's Altman-Z score of 3.47 is fine compared to the rest of the industry. SNN outperforms 71.20% of its industry peers.
  • SNN has a debt to FCF ratio of 3.90. This is a good value and a sign of high solvency as SNN would need 3.90 years to pay back of all of its debts.
  • SNN's Debt to FCF ratio of 3.90 is fine compared to the rest of the industry. SNN outperforms 79.89% of its industry peers.
  • A Debt/Equity ratio of 0.62 indicates that SNN is somewhat dependend on debt financing.
  • The Debt to Equity ratio of SNN (0.62) is worse than 63.04% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.9
Altman-Z 3.47
ROIC/WACC1.15
WACC8.19%
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 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 2.57 indicates that SNN has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.57, SNN is in line with its industry, outperforming 52.72% of the companies in the same industry.
  • SNN has a Quick Ratio of 1.25. This is a normal value and indicates that SNN is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.25, SNN is not doing good in the industry: 67.39% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 2.57
Quick Ratio 1.25
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 2025 1B 2B 3B 4B

5

3. SNN Growth Analysis

3.1 Past

  • SNN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.30%, which is quite impressive.
  • SNN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.99% yearly.
  • Looking at the last year, SNN shows a small growth in Revenue. The Revenue has grown by 6.09% in the last year.
  • SNN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.21% yearly.
EPS 1Y (TTM)52.3%
EPS 3Y41.08%
EPS 5Y6.99%
EPS Q2Q%70.1%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y5.73%
Revenue growth 5Y6.21%
Sales Q2Q%7.38%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.46% on average over the next years. This is quite good.
  • SNN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.07% yearly.
EPS Next Y13.3%
EPS Next 2Y9.26%
EPS Next 3Y9.83%
EPS Next 5Y9.46%
Revenue Next Year5.58%
Revenue Next 2Y5.47%
Revenue Next 3Y5.19%
Revenue Next 5Y6.07%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same 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. SNN Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.15, SNN is valued on the expensive side.
  • SNN's Price/Earnings ratio is a bit cheaper when compared to the industry. SNN is cheaper than 76.09% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of SNN to the average of the S&P500 Index (25.73), we can say SNN is valued inline with the index average.
  • SNN is valuated correctly with a Price/Forward Earnings ratio of 13.18.
  • Based on the Price/Forward Earnings ratio, SNN is valued cheaply inside the industry as 89.13% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of SNN to the average of the S&P500 Index (23.72), we can say SNN is valued slightly cheaper.
Industry RankSector Rank
PE 22.15
Fwd PE 13.18
SNN Price Earnings VS Forward Price EarningsSNN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • SNN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SNN is cheaper than 91.30% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, SNN is valued cheaply inside the industry as 93.48% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.11
EV/EBITDA 10.21
SNN Per share dataSNN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • SNN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.67
PEG (5Y)3.17
EPS Next 2Y9.26%
EPS Next 3Y9.83%

6

5. SNN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.36%, SNN has a reasonable but not impressive dividend return.
  • SNN's Dividend Yield is rather good when compared to the industry average which is at 0.22. SNN pays more dividend than 97.28% of the companies in the same industry.
  • SNN's Dividend Yield is a higher than the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 2.36%

5.2 History

  • The dividend of SNN has a limited annual growth rate of 0.41%.
  • SNN has paid a dividend for at least 10 years, which is a reliable track record.
  • SNN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)0.41%
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 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 52.80% of the earnings are spent on dividend by SNN. This is a bit on the high side, but may be sustainable.
  • The dividend of SNN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.8%
EPS Next 2Y9.26%
EPS Next 3Y9.83%
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 2025 200M 400M 600M 800M
SNN Dividend Payout.SNN Dividend Payout, showing the Payout Ratio.SNN Dividend Payout.PayoutRetained Earnings

SNN Fundamentals: All Metrics, Ratios and Statistics

SMITH & NEPHEW PLC -SPON ADR

NYSE:SNN (3/19/2026, 8:04:00 PM)

Premarket: 32.31 -0.03 (-0.09%)

32.34

-0.59 (-1.79%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)03-02
Earnings (Next)05-06
Inst Owners71.25%
Inst Owner Change-1.58%
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap13.73B
Revenue(TTM)6.16B
Net Income(TTM)625.00M
Analysts75.83
Price Target39.35 (21.68%)
Short Float %0.74%
Short Ratio3.28
Dividend
Industry RankSector Rank
Dividend Yield 2.36%
Yearly Dividend0.38
Dividend Growth(5Y)0.41%
DP52.8%
Div Incr Years1
Div Non Decr Years2
Ex-Date03-27
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)-0.82%
PT rev (3m)0.68%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.09%
EPS NY rev (3m)-4.53%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.36%
Valuation
Industry RankSector Rank
PE 22.15
Fwd PE 13.18
P/S 2.23
P/FCF 16.11
P/OCF 10.68
P/B 2.6
P/tB 10.57
EV/EBITDA 10.21
EPS(TTM)1.46
EY4.51%
EPS(NY)2.45
Fwd EY7.58%
FCF(TTM)2.01
FCFY6.21%
OCF(TTM)3.03
OCFY9.36%
SpS14.52
BVpS12.46
TBVpS3.06
PEG (NY)1.67
PEG (5Y)3.17
Graham Number20.23
Profitability
Industry RankSector Rank
ROA 5.98%
ROE 11.82%
ROCE 11.68%
ROIC 9.43%
ROICexc 10.05%
ROICexgc 19.18%
OM 16.79%
PM (TTM) 10.14%
GM 68.01%
FCFM 13.82%
ROA(3y)4.2%
ROA(5y)3.93%
ROE(3y)8.23%
ROE(5y)7.67%
ROIC(3y)8.27%
ROIC(5y)7.55%
ROICexc(3y)8.78%
ROICexc(5y)8.14%
ROICexgc(3y)17.51%
ROICexgc(5y)17.11%
ROCE(3y)10.3%
ROCE(5y)9.36%
ROICexgc growth 3Y10.55%
ROICexgc growth 5Y7.74%
ROICexc growth 3Y15.45%
ROICexc growth 5Y12.79%
OM growth 3Y11.36%
OM growth 5Y8.38%
PM growth 3Y33.35%
PM growth 5Y0.63%
GM growth 3Y-1.41%
GM growth 5Y-0.53%
F-Score7
Asset Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.9
Debt/EBITDA 2.03
Cap/Depr 75.57%
Cap/Sales 7.02%
Interest Coverage 7.29
Cash Conversion 79.91%
Profit Quality 136.32%
Current Ratio 2.57
Quick Ratio 1.25
Altman-Z 3.47
F-Score7
WACC8.19%
ROIC/WACC1.15
Cap/Depr(3y)65.72%
Cap/Depr(5y)65.43%
Cap/Sales(3y)7.09%
Cap/Sales(5y)7.19%
Profit Quality(3y)117.41%
Profit Quality(5y)98.21%
High Growth Momentum
Growth
EPS 1Y (TTM)52.3%
EPS 3Y41.08%
EPS 5Y6.99%
EPS Q2Q%70.1%
EPS Next Y13.3%
EPS Next 2Y9.26%
EPS Next 3Y9.83%
EPS Next 5Y9.46%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y5.73%
Revenue growth 5Y6.21%
Sales Q2Q%7.38%
Revenue Next Year5.58%
Revenue Next 2Y5.47%
Revenue Next 3Y5.19%
Revenue Next 5Y6.07%
EBIT growth 1Y23.07%
EBIT growth 3Y17.75%
EBIT growth 5Y15.12%
EBIT Next Year73.97%
EBIT Next 3Y20.64%
EBIT Next 5Y18.59%
FCF growth 1Y40.59%
FCF growth 3Y97.86%
FCF growth 5Y11.61%
OCF growth 1Y30.19%
OCF growth 3Y40.03%
OCF growth 5Y6.57%

SMITH & NEPHEW PLC -SPON ADR / SNN Fundamental Analysis 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 22.15 and the Price/Book (PB) ratio is 2.6.


Can you provide the dividend sustainability for SNN stock?

The dividend rating of SMITH & NEPHEW PLC -SPON ADR (SNN) is 6 / 10 and the dividend payout ratio is 52.8%.