SMITH & NEPHEW PLC -SPON ADR (SNN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:SNN • US83175M2052
35.09 USD
+0.91 (+2.66%)
At close: Feb 4, 2026
35.13 USD
+0.04 (+0.11%)
After Hours: 2/4/2026, 6:40:00 PM
Overall SNN gets a fundamental rating of 6 out of 10. We evaluated SNN against 186 industry peers in the Health Care Equipment & Supplies industry. SNN has an excellent profitability rating, but 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.
- 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.
1.2 Ratios
- SNN's Return On Assets of 4.59% is amongst the best of the industry. SNN outperforms 81.18% of its industry peers.
- SNN has a Return On Equity of 8.87%. This is amongst the best in the industry. SNN outperforms 83.33% of its industry peers.
- With an excellent Return On Invested Capital value of 8.43%, SNN belongs to the best of the industry, outperforming 86.56% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SNN is in line with the industry average of 8.80%.
- The last Return On Invested Capital (8.43%) for SNN is above the 3 year average (7.67%), which is a sign of increasing profitability.
| 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
- SNN has a better Profit Margin (8.26%) than 81.72% of its industry peers.
- SNN's Profit Margin has declined in the last couple of years.
- SNN has a Operating Margin of 14.99%. This is amongst the best in the industry. SNN outperforms 82.80% of its industry peers.
- In the last couple of years the Operating Margin of SNN has declined.
- With a decent Gross Margin value of 70.04%, SNN is doing good in the industry, outperforming 79.03% of the companies in the same industry.
- In the last couple of years the Gross Margin of SNN 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 below the Cost of Capital (WACC), so SNN is destroying value.
- The number of shares outstanding for SNN remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, SNN has about the same amount of shares outstanding.
- The debt/assets ratio for SNN is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.49 indicates that SNN is not in any danger for bankruptcy at the moment.
- SNN has a better Altman-Z score (3.49) than 71.51% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 4.33, SNN is in the better half of the industry, outperforming 79.57% of the companies in the same industry.
- SNN has a Debt/Equity ratio of 0.60. This is a neutral value indicating 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 61.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.33 | ||
| Altman-Z | 3.49 |
ROIC/WACC0.98
WACC8.62%
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's Quick ratio of 1.40 is in line compared to the rest of the industry. SNN outperforms 41.40% 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.
- SNN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.22% yearly.
- 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.
- SNN 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- SNN is valuated quite expensively with a Price/Earnings ratio of 30.25.
- Based on the Price/Earnings ratio, SNN is valued a bit cheaper than the industry average as 75.81% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.25. SNN is around the same levels.
- The Price/Forward Earnings ratio is 14.01, which indicates a correct valuation of SNN.
- Based on the Price/Forward Earnings ratio, SNN is valued cheaply inside the industry as 91.40% of the companies are valued more expensively.
- SNN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.25 | ||
| Fwd PE | 14.01 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SNN is valued cheaply inside the industry as 88.17% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SNN indicates a rather cheap valuation: SNN is cheaper than 91.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.69 | ||
| EV/EBITDA | 11.24 |
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)1.65
PEG (5Y)N/A
EPS Next 2Y15.42%
EPS Next 3Y11.68%
5. Dividend
5.1 Amount
- SNN has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
- SNN's Dividend Yield is rather good when compared to the industry average which is at 0.21. SNN pays more dividend than 97.31% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, SNN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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.
- SNN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP66.6%
EPS Next 2Y15.42%
EPS Next 3Y11.68%
35.09
+0.91 (+2.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)11-06 2025-11-06
Earnings (Next)03-02 2026-03-02/amc
Inst Owners74.13%
Inst Owner Change-0.61%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap14.89B
Revenue(TTM)5.94B
Net Income(TTM)491.00M
Analysts76.67
Price Target39 (11.14%)
Short Float %0.75%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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)0.98%
PT rev (3m)-0.13%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.29%
EPS NY rev (3m)-6.74%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.25 | ||
| Fwd PE | 14.01 | ||
| P/S | 2.51 | ||
| P/FCF | 18.69 | ||
| P/OCF | 13.01 | ||
| P/B | 2.69 | ||
| P/tB | 10.18 | ||
| EV/EBITDA | 11.24 |
EPS(TTM)1.16
EY3.31%
EPS(NY)2.51
Fwd EY7.14%
FCF(TTM)1.88
FCFY5.35%
OCF(TTM)2.7
OCFY7.69%
SpS14
BVpS13.04
TBVpS3.45
PEG (NY)1.65
PEG (5Y)N/A
Graham Number18.45
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 | 3.49 |
F-Score8
WACC8.62%
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 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 Year6.25%
Revenue Next 2Y5.74%
Revenue Next 3Y5.55%
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 30.25 and the Price/Book (PB) ratio is 2.69.
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%.