Smith & Nephew PLC SN.

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GBX 966.80 +6.60 (0.69%)

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As of Apr 18, 2024 3:39pm Delayed Price Closed

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Company Report

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Smith & Nephew Racks Up Consistent Operational Gains

Debbie Wang Feb 28, 2024

Impressive innovation has allowed Smith & Nephew to carve out a slice of the orthopedic, sports medicine, and wound care markets. Though the company is substantially smaller than the dominant orthopedic competitors, it has punched above its weight in terms of introducing meaningful innovation with its hip implants and knee replacements. For example, its Oxinium technology has demonstrated lower rates of revisions in hip replacements. The firm has also commercialized Regeneten, an implant that facilitates the growth of tendon-like tissue.

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Price vs Fair Value

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SN. is trading within a range we consider fairly valued.

Price

GBX 960.20

Apr 17, 2024

Fair Value

GBX 9,547.00

Apr 3, 2024

Uncertainty

Medium

1-Star Price: GBX 9,356.20
5-Star Price: GBX 2,857.50
Economic Moat: Rxwmqcf
Capital Allocation: Qqjghcnc

Bulls Say, Bears Say

Bulls

Smith & Nephew participates in the fast-growing sports medicine arena thanks to its extensive arthroscopy portfolio.

Bears

Smith & Nephew's attempted shift to the lower-cost Syncera distribution model in the U.S. was disappointing, which leaves the firm in a tenuous competitive position for large joint replacement.

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Trading Information

Previous Close Price: GBX 960.20
Day Range: GBX 955.80–968.40
52-Week Range: GBX 887.00–1,316.75
Bid/Ask: GBX 933.00 / GBX 1,044.00
Market Cap: GBX 845.31 Bil
Volume/Avg: 6.8 Mil / 3.8 Mil

Key Statistics

Price/Earnings (Normalized): 13.20
Price/Sales: 1.89
Dividend Yield (Trailing): 3.15%
Dividend Yield (Forward): 3.15%
Total Yield: 3.15%

Company Profile

Smith & Nephew designs, manufactures, and markets orthopedic devices, sports medicine and arthroscopic technologies, and wound-care solutions. Roughly 41% of the U.K.-based firm's revenue comes from orthopedic products, and another 30% is sports medicine and ENT. The remaining 29% of revenue is from the advanced wound therapy segment. Roughly half of Smith & Nephew's total revenue comes from the United States, just over 30% is from other developed markets, and emerging markets account for the remainder.

Sector: Healthcare
Industry: Medical Devices
Stock Style Box: Mid Core
Total Number of Employees: 18,452
Website: https://www.smith-nephew.com

Competitors

Valuation

Metric	SN.	SYK	ZBH
Price/Earnings (Normalized)	13.20	30.89	16.15
Price/Book Value	2.06	6.69	2.01
Price/Sales	1.89	6.13	3.46
Price/Cash Flow	11.16	29.84	12.94

Price/Earnings

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Financial Strength

Metric	SN.	SYK	ZBH
Quick Ratio	0.67	0.86	0.65
Current Ratio	1.77	1.58	1.61
Interest Coverage	2.84	11.32	6.30

Quick Ratio

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Profitability

Metric	SN.	SYK	ZBH
Return on Assets (Normalized)	7.27%	10.75%	7.45%
Return on Equity (Normalized)	13.79%	23.27%	12.87%
Return on Invested Capital (Normalized)	9.92%	14.37%	9.78%

Return on Assets

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SYK

ZBH

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