ScoreWhy is Smith & Nephew plc ?
1
High Management Efficiency with a high ROCE of 22.98%
2
With a growth in Operating Profit of 20.77%, the company declared Outstanding results in Dec 25
- OPERATING CASH FLOW(Y) Highest at GBP 1,724.22 MM
- ROCE(HY) Highest at 11.65%
- INTEREST COVERAGE RATIO(Q) Highest at 1,193.33
3
With ROE of 9.71%, it has a fair valuation with a 2.44 Price to Book Value
- Over the past year, while the stock has generated a return of 4.75%, its profits have fallen by -3.2%
Real-Time Research ReportHow much should you buy?
- 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
4.75%
-1.70
27.98%
FTSE 100
17.87%
1.52
11.77%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.07%
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
52.94%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
22.98%
ROE (avg)
18.53%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
2.44
EV to EBIT
19.88
EV to EBITDA
13.73
EV to Capital Employed
1.96
EV to Sales
4.11
PEG Ratio
NA
Dividend Yield
768.48%
ROCE (Latest)
9.86%
ROE (Latest)
9.71%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at GBP 1,724.22 MM
ROCE(HY)
Highest at 11.65%
INTEREST COVERAGE RATIO(Q)
Highest at 1,193.33
INVENTORY TURNOVER RATIO(HY)
Highest at 0.86 times
DEBTORS TURNOVER RATIO(HY)
Highest at 4.64 times
NET SALES(Q)
Highest at GBP 2,391.88 MM
OPERATING PROFIT(Q)
Highest at GBP 668.35 MM
PRE-TAX PROFIT(Q)
Highest at GBP 398.03 MM
NET PROFIT(Q)
Highest at GBP 371.5 MM
EPS(Q)
Highest at GBP 0.29
-1What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 61.78%
Here's what is working for Smith & Nephew plc
Interest Coverage Ratio
Highest at 1,193.33
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at GBP 1,724.22 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (GBP MM)
Net Sales
Highest at GBP 2,391.88 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
Operating Profit
Highest at GBP 668.35 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (GBP MM)
Pre-Tax Profit
Highest at GBP 398.03 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Net Profit
Highest at GBP 371.5 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
Net Profit
At GBP 371.5 MM has Grown at 50.17%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
EPS
Highest at GBP 0.29
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Inventory Turnover Ratio
Highest at 0.86 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 4.64 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Smith & Nephew plc
Dividend Payout Ratio
Lowest at 61.78%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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