Smiths Group Plc (SMIN) 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

FW Thorpe Plc

Volex Plc

discoverIE Group Plc

Supreme Plc

Smiths Group Plc

ITM Power Plc

Invinity Energy Systems Plc

XP Power Ltd.

Spectris Plc

Equipmake Holdings Plc

Dialight Plc

Why is Smiths Group Plc ?

Poor long term growth as Net Sales has grown by an annual rate of 2.73% and Operating profit at 10.51% over the last 5 years

Flat results in Jul 25

INTEREST COVERAGE RATIO(Q) Lowest at 721.05
RAW MATERIAL COST(Y) Grown by 5.9% (YoY)
NET SALES(Q) Lowest at GBP 1,307 MM

With ROE of 15.22%, it has a expensive valuation with a 4.07 Price to Book Value

Over the past year, while the stock has generated a return of 16.92%, its profits have risen by 8.1% ; the PEG ratio of the company is 2.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Smiths Group Plc should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Smiths Group Plc for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Smiths Group Plc

-100.0%

0.57

20.09%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.73%

EBIT Growth (5y)

10.51%

EBIT to Interest (avg)

5.97

Debt to EBITDA (avg)

0.93

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

0.89

Tax Ratio

27.87%

Dividend Payout Ratio

53.68%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

13.00%

ROE (avg)

8.22%

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

4.07

EV to EBIT

19.50

EV to EBITDA

14.71

EV to Capital Employed

3.58

EV to Sales

2.98

PEG Ratio

2.69

Dividend Yield

188.47%

ROCE (Latest)

18.34%

ROE (Latest)

15.22%

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

No Trend

Bullish

OBV

No Trend

Mildly 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

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at GBP 3.85

OPERATING PROFIT MARGIN(Q)

Highest at 20.96 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 86%

-8What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 721.05

RAW MATERIAL COST(Y)

Grown by 5.9% (YoY

NET SALES(Q)

Lowest at GBP 1,307 MM

INTEREST(Q)

Highest at GBP 38 MM

OPERATING PROFIT(Q)

Lowest at GBP 274 MM

PRE-TAX PROFIT(Q)

Lowest at GBP 195 MM

Here's what is working for Smiths Group Plc

Operating Profit Margin

Highest at 20.96 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at GBP 3.85 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Dividend Payout Ratio

Highest at 86%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Smiths Group Plc

Interest Coverage Ratio

Lowest at 721.05

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at GBP 1,307 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Net Sales

Fallen at -19.57%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Interest

Highest at GBP 38 MM

in the last five periods and Increased by 18.75% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Operating Profit

Lowest at GBP 274 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Pre-Tax Profit

Lowest at GBP 195 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Raw Material Cost

Grown by 5.9% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at GBP 0.17 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income