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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.9 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.15
WACC8.19%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.25 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.15 | ||
| Fwd PE | 13.18 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.11 | ||
| EV/EBITDA | 10.21 |
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%
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 Rank | Sector 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
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 Fundamentals: All Metrics, Ratios and Statistics
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 2026-03-02/amc
Earnings (Next)05-06 2026-05-06
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 Rank | Sector 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 2026-03-27 (0.482)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%.