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

NYSE:SNN • US83175M2052

Current stock price

32.74 USD
-0.1 (-0.3%)
At close:
32.74 USD
0 (0%)
After Hours:

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

  • SNN had positive earnings in the past year.
  • In the past year SNN had a positive cash flow from operations.
  • In the past 5 years SNN has always been profitable.
  • Each year in the past 5 years SNN had a positive operating cash flow.
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 82.89% of its industry peers.
  • The Return On Equity of SNN (11.82%) is better than 85.56% of its industry peers.
  • SNN has a Return On Invested Capital of 9.40%. This is amongst the best in the industry. SNN outperforms 88.77% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for SNN is in line with the industry average of 9.12%.
  • The 3 year average ROIC (8.36%) for SNN is below the current ROIC(9.40%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.98%
ROE 11.82%
ROIC 9.4%
ROA(3y)4.2%
ROA(5y)3.93%
ROE(3y)8.23%
ROE(5y)7.67%
ROIC(3y)8.36%
ROIC(5y)7.6%
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

  • The Profit Margin of SNN (10.14%) is better than 83.96% of its industry peers.
  • In the last couple of years the Profit Margin of SNN has remained more or less at the same level.
  • Looking at the Operating Margin, with a value of 16.74%, SNN belongs to the top of the industry, outperforming 86.63% of the companies in the same industry.
  • SNN's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 68.01%, SNN is doing good in the industry, outperforming 74.33% of the companies in the same industry.
  • SNN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 16.74%
PM (TTM) 10.14%
GM 68.01%
OM growth 3Y12.47%
OM growth 5Y9.02%
PM growth 3Y33.35%
PM growth 5Y0.63%
GM growth 3Y-1.29%
GM growth 5Y-0.46%
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

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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 3.50. This indicates that SNN is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of SNN (3.50) is better than 70.59% of its industry peers.
  • The Debt to FCF ratio of SNN is 3.90, which is a good value as it means it would take SNN, 3.90 years of fcf income to pay off all of its debts.
  • SNN has a better Debt to FCF ratio (3.90) than 78.07% of its industry peers.
  • SNN has a Debt/Equity ratio of 0.62. This is a neutral value indicating SNN is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.62, SNN is doing worse than 65.24% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.9
Altman-Z 3.5
ROIC/WACC1.15
WACC8.2%
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.
  • SNN has a Current ratio of 2.57. This is comparable to the rest of the industry: SNN outperforms 49.20% of its industry peers.
  • A Quick Ratio of 1.25 indicates that SNN should not have too much problems paying its short term obligations.
  • SNN's Quick ratio of 1.25 is on the low side compared to the rest of the industry. SNN is outperformed by 69.52% of its industry peers.
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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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 52.27%, which is quite impressive.
  • The Earnings Per Share has been growing slightly by 6.98% on average over the past years.
  • The Revenue has been growing slightly by 6.09% in the past year.
  • Measured over the past years, SNN shows a small growth in Revenue. The Revenue has been growing by 6.21% on average per year.
EPS 1Y (TTM)52.27%
EPS 3Y41.07%
EPS 5Y6.98%
EPS Q2Q%70.05%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y5.73%
Revenue growth 5Y6.21%
Sales Q2Q%7.38%

3.2 Future

  • SNN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.46% yearly.
  • SNN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.07% yearly.
EPS Next Y13.6%
EPS Next 2Y12.73%
EPS Next 3Y12.78%
EPS Next 5Y9.46%
Revenue Next Year6.95%
Revenue Next 2Y6.27%
Revenue Next 3Y6.02%
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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

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6

4. SNN Valuation Analysis

4.1 Price/Earnings Ratio

  • SNN is valuated rather expensively with a Price/Earnings ratio of 22.58.
  • SNN's Price/Earnings ratio is a bit cheaper when compared to the industry. SNN is cheaper than 77.54% of the companies in the same industry.
  • SNN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.79.
  • With a Price/Forward Earnings ratio of 13.38, SNN is valued correctly.
  • SNN's Price/Forward Earnings ratio is rather cheap when compared to the industry. SNN is cheaper than 89.84% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.88, SNN is valued rather cheaply.
Industry RankSector Rank
PE 22.58
Fwd PE 13.38
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

  • 90.37% of the companies in the same industry are more expensive than SNN, based on the Enterprise Value to EBITDA ratio.
  • SNN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SNN is cheaper than 93.58% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.4
EV/EBITDA 10.41
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.
  • A more expensive valuation may be justified as SNN's earnings are expected to grow with 12.78% in the coming years.
PEG (NY)1.66
PEG (5Y)3.23
EPS Next 2Y12.73%
EPS Next 3Y12.78%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. SNN Dividend Analysis

5.1 Amount

  • SNN has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.25, SNN pays a better dividend. On top of this SNN pays more dividend than 96.26% of the companies listed in the same industry.
  • SNN's Dividend Yield is a higher than the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 2.31%

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.
Dividend Growth(5Y)0.41%
Div Incr Years0
Div Non Decr Years0
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 2Y12.73%
EPS Next 3Y12.78%
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

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SNN Fundamentals: All Metrics, Ratios and Statistics

SMITH & NEPHEW PLC -SPON ADR

NYSE:SNN (4/22/2026, 4:15:00 PM)

After market: 32.74 0 (0%)

32.74

-0.1 (-0.3%)

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 Owners71.62%
Inst Owner Change-6.89%
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap13.97B
Revenue(TTM)6.16B
Net Income(TTM)625.00M
Analysts74.17
Price Target39.31 (20.07%)
Short Float %0.8%
Short Ratio3.98
Dividend
Industry RankSector Rank
Dividend Yield 2.31%
Yearly Dividend0.38
Dividend Growth(5Y)0.41%
DP52.8%
Div Incr Years0
Div Non Decr Years0
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)-0.12%
PT rev (3m)0.79%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-4.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)1.64%
Valuation
Industry RankSector Rank
PE 22.58
Fwd PE 13.38
P/S 2.27
P/FCF 16.4
P/OCF 10.87
P/B 2.64
P/tB 10.76
EV/EBITDA 10.41
EPS(TTM)1.45
EY4.43%
EPS(NY)2.45
Fwd EY7.47%
FCF(TTM)2
FCFY6.1%
OCF(TTM)3.01
OCFY9.2%
SpS14.44
BVpS12.39
TBVpS3.04
PEG (NY)1.66
PEG (5Y)3.23
Graham Number20.1075 (-38.58%)
Profitability
Industry RankSector Rank
ROA 5.98%
ROE 11.82%
ROCE 11.65%
ROIC 9.4%
ROICexc 10.02%
ROICexgc 19.12%
OM 16.74%
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)8.36%
ROIC(5y)7.6%
ROICexc(3y)8.88%
ROICexc(5y)8.2%
ROICexgc(3y)17.7%
ROICexgc(5y)17.23%
ROCE(3y)10.42%
ROCE(5y)9.43%
ROICexgc growth 3Y11.64%
ROICexgc growth 5Y8.38%
ROICexc growth 3Y16.59%
ROICexc growth 5Y13.45%
OM growth 3Y12.47%
OM growth 5Y9.02%
PM growth 3Y33.35%
PM growth 5Y0.63%
GM growth 3Y-1.29%
GM growth 5Y-0.46%
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 7.27
Cash Conversion 80.06%
Profit Quality 136.32%
Current Ratio 2.57
Quick Ratio 1.25
Altman-Z 3.5
F-Score7
WACC8.2%
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)52.27%
EPS 3Y41.07%
EPS 5Y6.98%
EPS Q2Q%70.05%
EPS Next Y13.6%
EPS Next 2Y12.73%
EPS Next 3Y12.78%
EPS Next 5Y9.46%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y5.73%
Revenue growth 5Y6.21%
Sales Q2Q%7.38%
Revenue Next Year6.95%
Revenue Next 2Y6.27%
Revenue Next 3Y6.02%
Revenue Next 5Y6.07%
EBIT growth 1Y22.71%
EBIT growth 3Y18.91%
EBIT growth 5Y15.8%
EBIT Next Year56.91%
EBIT Next 3Y21.52%
EBIT Next 5Y18.32%
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.


Can you provide the valuation status for SMITH & NEPHEW PLC -SPON ADR?

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


How profitable is SMITH & NEPHEW PLC -SPON ADR (SNN) stock?

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


What is the financial health of SMITH & NEPHEW PLC -SPON ADR (SNN) stock?

The financial health rating of SMITH & NEPHEW PLC -SPON ADR (SNN) is 6 / 10.


How sustainable is the dividend of SMITH & NEPHEW PLC -SPON ADR (SNN) stock?

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