Now trading at a price of $27.83, Smith & Nephew has moved 5.9% so far today.
Smith & Nephew returned losses of -6.0% last year, with its stock price reaching a high of $31.72 and a low of $23.65. Over the same period, the stock underperformed the S&P 500 index by -23.8%. AThe company's 50-day average price was $25.13. Smith & Nephew plc, together with its subsidiaries, develops, manufactures, markets, and sells medical devices and services in the United Kingdom and internationally. Based in Watford, United Kingdom, the Large-Cap Health Care company has 18,000 full time employees. Smith & Nephew has offered a 1.4% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 41.35%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $4,904 | $5,138 | $4,560 | $5,212 | $5,215 | $5,549 |
| Gross Margins | 74% | 74% | 69% | 70% | 70% | 69% |
| Net Margins | 14% | 12% | 10% | 10% | 4% | 5% |
| Net Income (M) | $663 | $600 | $448 | $524 | $223 | $263 |
| Net Interest Expense (M) | $59 | $65 | $62 | $80 | $80 | $132 |
| Depreciation & Amort. (M) | $427 | $502 | $562 | $567 | $617 | $683 |
| Diluted Shares (M) | 888 | 885 | 885 | 885 | 878 | 878 |
| Earnings Per Share | $0.75 | $68.4 | $51.2 | $59.7 | $0.25 | $0.3 |
| Free Cash Flow (M) | $584 | $1,168 | $935 | $877 | $468 | $608 |
| Total Debt (M) | $1,301 | $2,119 | $4,027 | $3,830 | $3,032 | $3,849 |
| Net Debt / EBITDA | 0.75 | 1.41 | 2.66 | 2.19 | 2.52 | 3.2 |
| Current Ratio | 2.1 | 2.06 | 2.76 | 2.08 | 2.25 | 1.77 |
Smith & Nephew's Valuation Is in Line With Its Sector Averages:
Smith & Nephew has a trailing twelve month P/E ratio of 35.9, compared to an average of 26.07 for the Health Care sector. Based on its EPS guidance of $1.29, the company has a forward P/E ratio of 19.5. The 8.1% compound average growth rate of Smith & Nephew's historical and projected earnings per share yields a PEG ratio of 4.46. This suggests that these shares are overvalued. Furthermore, Smith & Nephew is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.67 is higher than the sector average of 3.53. The company's shares are currently trading 339.7% below their Graham number.
Smith & Nephew Has an Analyst Consensus of Some Upside Potential:
Smith & Nephew has a very low short interest because 0.4% of the company's shares are sold short. Institutions own 8.1% of the company's shares, and the insider ownership rate stands at 0.07%, suggesting a small amount of insider investors. The largest shareholder is Fiduciary Management, Inc., whose 1% stake in the company is worth $111,282,178.
