Smith & Nephew plc (SN.) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Avon Protection Plc

Tristel Plc

Advanced Medical Solutions Group Plc

Smith & Nephew plc

Belluscura Plc

Inspecs Group Plc

EKF Diagnostics Holdings Plc

Inspiration Healthcare Group Plc

Creo Medical Group Plc

Convatec Group Plc

Tissue Regenix Group Plc

Why is Smith & Nephew plc ?

Weak Long Term Fundamental Strength with a 3.16% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 3.16% of over the last 5 years

Flat results in Jun 26

DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DIVIDEND PER SHARE(HY) Lowest at GBP 4.21

With ROE of 9.71%, it has a fair valuation with a 2.50 Price to Book Value

Over the past year, while the stock has generated a return of -17.91%, its profits have fallen by -3.2%

Below par performance in long term as well as near term

Along with generating -17.91% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How 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

-17.91%

-1.91

25.65%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

0.02%

ROCE (avg)

22.98%

ROE (avg)

18.53%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.50

EV to EBIT

20.28

EV to EBITDA

14.01

EV to Capital Employed

2.00

EV to Sales

4.19

PEG Ratio

Dividend Yield

750.15%

ROCE (Latest)

9.86%

ROE (Latest)

9.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 1,870.58 MM

ROCE(HY)

Highest at 11.91%

INVENTORY TURNOVER RATIO(HY)

Highest at 0.88 times

RAW MATERIAL COST(Y)

Fallen by -1.57% (YoY

CASH AND EQV(HY)

Highest at GBP 568.09 MM

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at GBP 4.21

Here's what is working for Smith & Nephew plc

Inventory Turnover Ratio

Highest at 0.88 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at GBP 1,870.58 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Cash and Eqv

Highest at GBP 568.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.57% (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

Dividend Payout Ratio

Lowest at 0% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Dividend per share

Lowest at GBP 4.21

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)