Financials Smith & Nephew Plc

Equities

SN.

GB0009223206

Medical Equipment, Supplies & Distribution

Market Closed - London S.E. Other stock markets 11:35:03 2024-04-26 am EDT			5-day change	1st Jan Change
981 ^GBX	+1.72%		+2.00%	-9.04%

Apr. 11	UK Stocks Retreat as Hope for June BoE Rate Cut Dissipates	MT
Apr. 11	Proxy Advisers Raise Concerns Over Smith & Nephew's Pay Hike Proposal	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	21,221	18,071	15,374	11,668	11,946	10,654	-	-
Enterprise Value (EV) ¹	22,991	19,999	17,423	14,190	11,946	13,209	12,886	12,580
P/E ratio	35.5 x	40.3 x	29.3 x	52.6 x	45.6 x	20.8 x	15.7 x	13.4 x
Yield	1.54%	1.82%	2.14%	2.79%	-	3.14%	3.51%	3.94%
Capitalization / Revenue	4.13 x	3.96 x	2.95 x	2.24 x	2.15 x	1.83 x	1.74 x	1.65 x
EV / Revenue	4.47 x	4.39 x	3.34 x	2.72 x	2.15 x	2.27 x	2.1 x	1.95 x
EV / EBITDA	14.9 x	18 x	13 x	10.7 x	8.16 x	8.91 x	7.91 x	7.37 x
EV / FCF	30.3 x	40.6 x	37.1 x	129 x	-	23.3 x	17.9 x	16.1 x
FCF Yield	3.31%	2.46%	2.69%	0.78%	-	4.29%	5.58%	6.22%
Price to Book	4.15 x	3.43 x	2.76 x	2.23 x	-	1.98 x	1.88 x	1.79 x
Nbr of stocks (in thousands)	873,334	875,215	878,536	869,496	870,199	871,935	-	-
Reference price ²	24.30	20.65	17.50	13.42	13.73	12.22	12.22	12.22
Announcement Date	2/20/20	2/18/21	2/22/22	2/21/23	2/27/24	-	-	-

¹USD in Million²USD

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	5,138	4,560	5,212	5,215	5,549	5,831	6,131	6,456
EBITDA ¹	1,544	1,108	1,345	1,324	1,464	1,483	1,629	1,706
EBIT ¹	1,169	683	936	901	970	1,062	1,224	1,336
Operating Margin	22.75%	14.98%	17.96%	17.28%	17.48%	18.22%	19.97%	20.7%
Earnings before Tax (EBT) ¹	743	246	586	235	290	639.9	847.3	991.9
Net income ¹	600	448	524	223	263	549	703.3	791.3
Net margin	11.68%	9.82%	10.05%	4.28%	4.74%	9.42%	11.47%	12.26%
EPS ²	0.6840	0.5120	0.5970	0.2550	0.3010	0.5867	0.7768	0.9132
Free Cash Flow ¹	760	492	469	110	-	567.1	718.7	781.8
FCF margin	14.79%	10.79%	9%	2.11%	-	9.73%	11.72%	12.11%
FCF Conversion (EBITDA)	49.22%	44.4%	34.87%	8.31%	-	38.23%	44.12%	45.83%
FCF Conversion (Net income)	126.67%	109.82%	89.5%	49.33%	-	103.29%	102.19%	98.81%
Dividend per Share ²	0.3750	0.3750	0.3750	0.3750	-	0.3837	0.4287	0.4817
Announcement Date	2/20/20	2/18/21	2/22/22	2/21/23	2/27/24	-	-	-

¹USD in Million²USD

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2019 S2	2020 S1	2020 S2	2021 S1	2021 Q3	2021 Q4	2021 S2	2022 Q1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2022 S2	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2023 S2	2024 Q1	2024 Q2	2024 S1	2024 Q3	2024 Q4	2024 S2
Net sales ¹	2,653	2,035	2,525	2,599	1,266	1,346	2,613	1,306	1,293	2,600	1,250	1,365	2,615	1,356	1,379	2,734	1,357	1,458	2,815	1,402	1,440	2,837	1,437	1,560	3,005
EBITDA	825	360	748	666	-	-	679	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
EBIT	637	172	511	459	-	-	477	-	-	440	-	-	461	-	-	417	-	-	553	-	-	481.2	-	-	581.3
Operating Margin	24.01%	8.45%	20.24%	17.66%	-	-	18.25%	-	-	16.92%	-	-	17.63%	-	-	15.25%	-	-	19.64%	-	-	16.96%	-	-	19.34%
Earnings before Tax (EBT)	360	-34	280	223	-	-	-	-	-	204	-	-	31	-	-	211	-	-	79	-	-	277	-	-	373
Net income	291	100	348	205	-	-	319	-	-	177	-	-	46	-	-	171.6	-	-	91	-	-	223.5	-	-	300
Net margin	10.97%	4.91%	13.78%	7.89%	-	-	12.21%	-	-	6.81%	-	-	1.76%	-	-	6.28%	-	-	3.23%	-	-	7.88%	-	-	9.98%
EPS	0.3320	0.1140	0.3980	0.2330	-	-	0.3640	-	-	0.2020	-	-	0.0530	-	-	0.1970	-	-	0.1040	-	-	0.2300	-	-	0.3700
Dividend per Share	-	-	-	-	-	-	-	-	-	0.1440	-	-	0.2310	-	-	0.1440	-	-	-	-	-	-	-	-	-
Announcement Date	2/20/20	7/29/20	2/18/21	7/29/21	11/4/21	2/22/22	2/22/22	4/28/22	7/28/22	7/28/22	11/3/22	2/21/23	2/21/23	5/3/23	8/3/23	8/3/23	11/2/23	2/27/24	2/27/24	-	-	-	-	-	-

¹USD in Million

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	1,770	1,928	2,049	2,522	-	2,555	2,232	1,925
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	1.146 x	1.74 x	1.523 x	1.905 x	-	1.722 x	1.37 x	1.128 x
Free Cash Flow ¹	760	492	469	110	-	567	719	782
ROE (net income / shareholders' equity)	17.8%	10.8%	13.1%	13.2%	-	14.2%	15.9%	16.6%
ROA (Net income/ Total Assets)	10.3%	5.55%	6.47%	6.83%	-	6.25%	7.85%	8.5%
Assets ¹	5,831	8,072	8,093	3,266	-	8,784	8,959	9,309
Book Value Per Share ²	5.860	6.020	6.350	6.030	-	6.190	6.510	6.810
Cash Flow per Share ²	1.330	1.070	1.000	0.5400	-	1.220	1.460	1.190
Capex ¹	408	443	408	358	-	449	465	483
Capex / Sales	7.94%	9.71%	7.83%	6.86%	-	7.71%	7.58%	7.49%
Announcement Date	2/20/20	2/18/21	2/22/22	2/21/23	2/27/24	-	-	-

¹USD in Million²USD

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Smith & Nephew Plc

Trading Rating

Investor Rating

ESG Refinitiv

A-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

12.22 USD

Average target price

16.41 USD

Spread / Average Target

+34.28%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Medical Devices & Implants

	1st Jan change	Capi.
SMITH & NEPHEW PLC	-9.04%	10.65B
STRYKER CORPORATION	+12.07%	128B
IMEIK TECHNOLOGY DEVELOPMENT CO.,LTD.	+0.91%	8.82B
INSPIRE MEDICAL SYSTEMS, INC.	+16.72%	7.19B
GLAUKOS CORPORATION	+25.15%	4.99B
AXONICS, INC.	+7.17%	3.4B
ENOVIS CORPORATION	-1.36%	3.03B
BEIJING BALANCE MEDICAL TECHNOLOGY CO.,LTD.	-8.73%	2.14B
SHANGHAI MICROPORT ENDOVASCULAR MEDTECH CO., LTD.	-10.15%	2B
DOUBLE MEDICAL TECHNOLOGY INC.	-22.81%	1.79B

Medical Devices & Implants