SMITH & NEPHEW PLC -SPON ADR (SNN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SNN - US83175M2052 - ADR
33.28 USD
-0.13 (-0.39%)
33.28 USD
0 (0%)
SNN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 188 industry peers in the Health Care Equipment & Supplies industry. While SNN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on SNN. These ratings could make SNN a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year SNN was profitable.
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.
1.2 Ratios
With an excellent Return On Assets value of 4.59%, SNN belongs to the best of the industry, outperforming 80.32% of the companies in the same industry.
With an excellent Return On Equity value of 8.87%, SNN belongs to the best of the industry, outperforming 83.51% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.43%, SNN belongs to the top of the industry, outperforming 86.17% of the companies in the same industry.
SNN had an Average Return On Invested Capital over the past 3 years of 7.67%. This is in line with the industry average of 8.71%.
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
With an excellent Profit Margin value of 8.26%, SNN belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
In the last couple of years the Profit Margin of SNN has declined.
SNN's Operating Margin of 14.99% is amongst the best of the industry. SNN outperforms 84.04% 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 77.13% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
SNN has an Altman-Z score of 3.45. This indicates that SNN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.45, SNN is doing good in the industry, outperforming 70.74% 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.
With a decent Debt to FCF ratio value of 4.33, SNN is doing good in the industry, outperforming 79.26% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that SNN is somewhat dependend on debt financing.
SNN's Debt to Equity ratio of 0.60 is on the low side compared to the rest of the industry. SNN is outperformed by 62.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.33 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.99
WACC8.49%
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.
SNN has a Current ratio of 3.00. This is comparable to the rest of the industry: SNN outperforms 58.51% of its industry peers.
A Quick Ratio of 1.40 indicates that SNN should not have too much problems paying its short term obligations.
The Quick ratio of SNN (1.40) is comparable to the rest of the industry.
| 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.
SNN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.35%.
Measured over the past years, SNN shows a small growth in Revenue. The Revenue has been growing by 2.49% on average per year.
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
SNN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.19% yearly.
The Revenue is expected to grow by 5.46% on average over the next years.
EPS Next Y28.32%
EPS Next 2Y21.2%
EPS Next 3Y13.51%
EPS Next 5Y11.19%
Revenue Next Year6.38%
Revenue Next 2Y5.9%
Revenue Next 3Y5.67%
Revenue Next 5Y5.46%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.69, which means the current valuation is very expensive for SNN.
Compared to the rest of the industry, the Price/Earnings ratio of SNN indicates a somewhat cheap valuation: SNN is cheaper than 73.94% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. SNN is around the same levels.
With a Price/Forward Earnings ratio of 12.03, SNN is valued correctly.
90.96% of the companies in the same industry are more expensive than SNN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, SNN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.69 | ||
| Fwd PE | 12.03 |
4.2 Price Multiples
SNN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SNN is cheaper than 88.83% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SNN is valued cheaper than 91.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.7 | ||
| EV/EBITDA | 11.02 |
4.3 Compensation for Growth
SNN's 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.
SNN's earnings are expected to grow with 13.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y21.2%
EPS Next 3Y13.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.28%, 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 1.75. SNN pays more dividend than 97.87% of the companies in the same industry.
SNN's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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
SNN pays out 66.60% of its income as dividend. 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 2Y21.2%
EPS Next 3Y13.51%
33.28
-0.13 (-0.39%)
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-4.06%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap14.11B
Revenue(TTM)5.94B
Net Income(TTM)491.00M
Analysts76.52
Price Target38.96 (17.07%)
Short Float %0.58%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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)2.17%
PT rev (3m)6.34%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.26%
EPS NY rev (3m)9.6%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.69 | ||
| Fwd PE | 12.03 | ||
| P/S | 2.37 | ||
| P/FCF | 17.7 | ||
| P/OCF | 12.32 | ||
| P/B | 2.55 | ||
| P/tB | 9.64 | ||
| EV/EBITDA | 11.02 |
EPS(TTM)1.16
EY3.49%
EPS(NY)2.77
Fwd EY8.31%
FCF(TTM)1.88
FCFY5.65%
OCF(TTM)2.7
OCFY8.12%
SpS14.02
BVpS13.06
TBVpS3.45
PEG (NY)1.01
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 | 3.45 |
F-Score8
WACC8.49%
ROIC/WACC0.99
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 Y28.32%
EPS Next 2Y21.2%
EPS Next 3Y13.51%
EPS Next 5Y11.19%
Revenue 1Y (TTM)5.35%
Revenue growth 3Y3.69%
Revenue growth 5Y2.49%
Sales Q2Q%4.74%
Revenue Next Year6.38%
Revenue Next 2Y5.9%
Revenue Next 3Y5.67%
Revenue Next 5Y5.46%
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 7 / 10 to SMITH & NEPHEW PLC -SPON ADR (SNN). This can be considered as Undervalued.
What is the profitability of SNN stock?
SMITH & NEPHEW PLC -SPON ADR (SNN) has a profitability rating of 8 / 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 28.32% in the next year.