ScoreWhy is Smith & Nephew plc ?
1
High Management Efficiency with a high ROCE of 22.98%
2
Poor long term growth as Operating profit has grown by an annual rate 3.16% of over the last 5 years
3
Flat results in Jun 25
- DIVIDEND PAYOUT RATIO(Y) Lowest at 42.76%
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.2%
4
With ROE of 9.45%, it has a expensive valuation with a 2.90 Price to Book Value
- Over the past year, while the stock has generated a return of 23.74%, its profits have fallen by -3.1%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Smith & Nephew plc should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Smith & Nephew plc for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Smith & Nephew plc
23.74%
-1.53
27.95%
FTSE 100
15.94%
1.23
12.99%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.08%
EBIT Growth (5y)
3.16%
EBIT to Interest (avg)
67.31
Debt to EBITDA (avg)
0.43
Net Debt to Equity (avg)
0.49
Sales to Capital Employed (avg)
0.43
Tax Ratio
29.67%
Dividend Payout Ratio
78.32%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
22.98%
ROE (avg)
18.53%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
Price to Book Value
2.90
EV to EBIT
23.51
EV to EBITDA
16.24
EV to Capital Employed
2.29
EV to Sales
4.86
PEG Ratio
NA
Dividend Yield
765.22%
ROCE (Latest)
9.73%
ROE (Latest)
9.45%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
ROCE(HY)
Highest at 9.3%
RAW MATERIAL COST(Y)
Fallen by -1.75% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 50.18 %
EPS(Q)
Highest at GBP 0.26
-2What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 42.76%
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.2%
Here's what is working for Smith & Nephew plc
EPS
Highest at GBP 0.26
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Debt-Equity Ratio
Lowest at 50.18 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -1.75% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Smith & Nephew plc
Debtors Turnover Ratio
Lowest at 4.2%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio
Lowest at 42.76%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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