Why is Smiths Group Plc ?
1
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
2
Flat results in Jan 25
- DIVIDEND PAYOUT RATIO(Y) Lowest at 29.18%
3
With ROE of 15.24%, it has a expensive valuation with a 3.94 Price to Book Value
- Over the past year, while the stock has generated a return of 37.55%, its profits have risen by 8.3% ; the PEG ratio of the company is 2.6
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Smiths Group Plc for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Smiths Group Plc
37.55%
0.80
20.78%
FTSE 100
15.94%
1.23
12.99%
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
0
Institutional Holding
0.04%
ROCE (avg)
13.00%
ROE (avg)
8.22%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
3.94
EV to EBIT
18.80
EV to EBITDA
14.19
EV to Capital Employed
3.46
EV to Sales
2.88
PEG Ratio
2.56
Dividend Yield
188.33%
ROCE (Latest)
18.43%
ROE (Latest)
15.24%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
12What is working for the Company
ROCE(HY)
Highest at 13.99%
INTEREST COVERAGE RATIO(Q)
Highest at 987.5
OPERATING PROFIT MARGIN(Q)
Highest at 19.65 %
NET PROFIT(Q)
Highest at GBP 165.53 MM
RAW MATERIAL COST(Y)
Fallen by -0.91% (YoY
OPERATING PROFIT(Q)
Highest at GBP 316 MM
PRE-TAX PROFIT(Q)
Highest at GBP 226 MM
EPS(Q)
Highest at GBP 0.49
-1What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 29.18%
Here's what is working for Smiths Group Plc
Interest Coverage Ratio
Highest at 987.5
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit Margin
Highest at 19.65 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Net Profit
Highest at GBP 165.53 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (GBP MM)
Operating Profit
Highest at GBP 316 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (GBP MM)
Pre-Tax Profit
Highest at GBP 226 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
EPS
Highest at GBP 0.49
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (GBP)
Raw Material Cost
Fallen by -0.91% (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
Depreciation
Highest at GBP 79 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (GBP MM)
Here's what is not working for Smiths Group Plc
Dividend Payout Ratio
Lowest at 29.18%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)






