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Smiths Group plc
(LSE:SMIN)
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Rating:61Neutral
Price Target:
2,938.00 p
▲(12.27% Upside)
Action:Reiterated
Date:09/24/26
The score is held back primarily by mixed financial performance signals (revenue decline, higher debt, weaker cash flow and earnings-quality concerns) and a high valuation (P/E ~36). Offsetting these are constructive technical trend signals and a notably positive earnings-call outlook, including FY27 guidance for improved margin and solid organic growth despite acknowledged regional and end-market headwinds.
Positive Factors
Recurring revenue base
A substantial aftermarket and contracted-revenue base supports customer retention and visibility beyond individual equipment sales. These repeat purchases and long-term programs can make revenue more resilient, support service-led margins, and reduce dependence on volatile new-project demand.
Negative Factors
Higher total debt
The sharp increase in total debt raises financial risk even though leverage has historically looked manageable. Unless supported by durable cash generation, higher borrowings can reduce flexibility for acquisitions, investment, shareholder returns, and resilience during weaker operating conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue base
A substantial aftermarket and contracted-revenue base supports customer retention and visibility beyond individual equipment sales. These repeat purchases and long-term programs can make revenue more resilient, support service-led margins, and reduce dependence on volatile new-project demand.
Read all positive factors
Smiths Group plc (SMIN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£7.97B
Dividend Yield1.65%
Average Volume (3M)1.05M
Price to Earnings (P/E)4.4
Beta (1Y)1.26
Revenue Growth-33.55%
EPS Growth633.82%
CountryUK
Employees16,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)6.29
Shares Outstanding281,335,720
10 Day Avg. Volume1,125,400
30 Day Avg. Volume1,047,865
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)3.21
Price to Sales (P/S)4.27
P/FCF Ratio46.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£54,965.83Price Target Upside2000.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.15
Revenue Forecast (FY)£2.05B
Smiths Group plc Business Overview & Revenue Model
Company Description
Smiths Group plc is a global technology enterprise, providing innovative solutions across diverse sectors such as medical technology, security and defense, general industrial applications, energy, and space and aerospace. The company's operations ...
How the Company Makes Money
Smiths Group makes money primarily by selling engineered products and by providing aftermarket services that support those products over their operating life.
1) Product sales across four divisions
- John Crane: Generates revenue from selling mec...
Smiths Group plc Earnings Call Summary
Earnings Call Date:Sep 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Mar 19, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. Management emphasized the completed portfolio transformation, resilient fiscal year 2026 results, strong cash generation, successful capital allocation, DRC's early performance and improving margin and growth expectations. These positives were moderated by continued Middle East disruption, weakness in U.S. residential construction, the decline in Thermal Solutions and ongoing market and working-capital challenges.Positive Updates
Portfolio Transformation Completed
Smiths completed the sales of Smiths Interconnect and Smiths Detection at very good prices, crystallizing GBP 3.3 billion of enterprise value and repositioning the company as a focused premium industrial engineering company.
Negative Updates
Middle East Conflict Disrupted John Crane
The conflict in the Middle East reduced John Crane revenue by GBP 20 million, affected maintenance programs and OE projects, reduced order intake as customers cut CapEx and optimized OpEx, and contributed to slower receivables collections. Management expects disruption to continue at least through the first half of fiscal year 2027, with a similar impact in the first half to that seen in the second half of fiscal year 2026.
Read all updates
Q4-2026 Updates
Positive
Negative
Portfolio Transformation Completed
Smiths completed the sales of Smiths Interconnect and Smiths Detection at very good prices, crystallizing GBP 3.3 billion of enterprise value and repositioning the company as a focused premium industrial engineering company.
Read all positive updates
Company Guidance
For fiscal year ’27, Smiths is guiding to organic revenue growth of around 4%, headline operating profit margin of approximately 21%, entering the medium-term target range of 21% to 23% sooner than expected, and operating cash conversion in the low 90s range. John Crane is expected to be weighted towards the second half, with continued Middle East disruption during the first half and the impact expected to be less in the second half, while Flex-Tek growth is expected to be weighted towards the first half, with a continuation of the subdued U.S. residential construction market, a continuing strong performance in Aerospace, a return to growth in Thermal Solutions and a positive organic contribution from fast growth in DRC; tariffs are expected to be relatively neutral to us in fiscal year ’27. Over the medium term, Smiths expects to deliver its 5% to 7% organic revenue growth target and support its 21% to 23% operating profit margin target, with GBP 30 million to GBP 35 million of annualized benefit for this fiscal year from the acceleration plan.Smiths Group plc Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
49
Neutral
| Breakdown | Jul 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.94B | 2.92B | 3.13B | 3.04B | 2.57B |
| Gross Profit | 772.00M | 410.00M | 1.17B | 1.12B | 961.00M |
| EBITDA | 384.00M | 558.00M | 580.00M | 580.00M | 287.00M |
| Net Income | 1.97B | 292.00M | 250.00M | 231.00M | 13.00M |
Balance Sheet | |||||
| Total Assets | 4.84B | 4.01B | 4.23B | 4.36B | 5.22B |
| Cash, Cash Equivalents and Short-Term Investments | 2.96B | 195.00M | 459.00M | 285.00M | 1.06B |
| Total Debt | 1.20B | 667.00M | 659.00M | 654.00M | 1.17B |
| Total Liabilities | 2.23B | 1.95B | 1.98B | 1.95B | 2.50B |
| Stockholders Equity | 2.58B | 2.04B | 2.23B | 2.38B | 2.70B |
Cash Flow | |||||
| Free Cash Flow | 177.00M | 384.00M | 332.00M | 212.00M | 191.00M |
| Operating Cash Flow | 241.00M | 456.00M | 418.00M | 293.00M | 279.00M |
| Investing Cash Flow | 3.01B | -160.00M | 39.00M | -108.00M | 1.25B |
| Financing Cash Flow | -509.00M | -517.00M | -269.00M | -945.00M | -985.00M |
Smiths Group plc Technical Analysis
Positive
2617.00
Price Trends
2648.36
Positive
2593.28
Positive
2545.22
Positive
Market Momentum
67.13
Negative
68.75
Neutral
71.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SMIN, the sentiment is Positive. The current price of 2617 is below the 20-day moving average (MA) of 2688.50, below the 50-day MA of 2648.36, and above the 200-day MA of 2545.22, indicating a bullish trend. The MACD of 67.13 indicates Negative momentum. The RSI at 68.75 is Neutral, neither overbought nor oversold. The STOCH value of 71.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SMIN.
Smiths Group plc Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £7.39B | 22.28 | 32.41% | 1.16% | 7.67% | 45.97% | |
76 Outperform | £3.98B | 32.92 | 21.48% | 1.70% | 2.22% | 25.89% | |
66 Neutral | £5.43B | 26.64 | 16.03% | 2.43% | 5.07% | 21.70% | |
65 Neutral | £6.87B | 25.10 | 13.45% | 1.64% | 5.84% | -14.62% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £7.97B | 4.39 | 92.97% | 2.41% | -33.55% | 633.82% | |
58 Neutral | £5.74B | 35.27 | 5.63% | 1.67% | 8.59% | -48.09% |
* Industrials Sector Average
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Smiths Group plc Corporate Events
Business Operations and StrategyStock Buyback
Smiths Group expands share buyback with new £500m tranche
Positive
Sep 22, 2026
Smiths Group plc has launched a new tranche of its previously announced £1.5bn share buyback programme, adding up to £500m of ordinary share repurchases once the current £700m phase completes. The move is aimed at reducing the compa...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Smiths Group Reshapes Portfolio and Lifts Margins After Transformational Year
Positive
Sep 22, 2026
Smiths Group reported a resilient FY2026, with organic revenue up 1.2% to £1.94bn and headline operating profit up 1.9% to £399m, lifting the operating margin to 20.6% despite energy and U.S. residential construction headwinds. The compa...
Business Operations and StrategyStock Buyback
Smiths Group launches multi-venue share buyback to bolster capital efficiency
Positive
Sep 21, 2026
Smiths Group plc has repurchased 1,926,372 of its ordinary shares on the London Stock Exchange from HSBC Bank plc under buyback instructions issued in early July 2026. The shares, acquired across multiple trading venues between 14 and 18 September...
Business Operations and StrategyStock Buyback
Smiths Group Buys Back 1.9m Shares in Capital Management Move
Positive
Sep 14, 2026
Smiths Group plc has undertaken a significant share repurchase programme, buying 1,884,669 ordinary shares on the London Stock Exchange from HSBC Bank plc over the period 7–11 September 2026. Trades were executed across multiple venues, and ...
Business Operations and StrategyStock Buyback
Smiths Group launches multi-venue share buyback to bolster capital structure
Positive
Sep 7, 2026
Smiths Group plc has repurchased 1,769,024 of its ordinary shares on the London Stock Exchange and associated trading venues, executing the transactions through HSBC Bank plc under previously announced instructions dated 6 July 2026. The acquired ...
Stock BuybackRegulatory Filings and Compliance
Smiths Group Updates Share Capital and Voting Rights Ahead of Buyback Cancellations
Positive
Sep 1, 2026
Smiths Group plc reported that as of 31 August 2026 its issued share capital consists of 289,311,314 ordinary shares of 37.5p each, all carrying one vote per share and with no shares held in treasury. The company noted that this total voting right...
Business Operations and StrategyStock Buyback
Smiths Group Executes Share Buyback as It Refines Capital Structure
Positive
Sep 1, 2026
Smiths Group plc has repurchased 1,110,997 of its ordinary shares on the London Stock Exchange and related trading venues under previously announced instructions, with purchases executed by HSBC Bank across multiple days in late August at volume-w...
Business Operations and StrategyExecutive/Board Changes
Smiths Group bolsters board with new non-executive directors
Positive
Aug 25, 2026
Smiths Group plc has strengthened its board with the appointment of experienced international executives Val Rahmani and Dr Emma FitzGerald as independent non-executive directors, effective from October and November 2026 respectively. Rahmani brin...
Business Operations and StrategyStock Buyback
Smiths Group Steps Up Capital Management With Multi-Day Share Buyback
Positive
Aug 24, 2026
Smiths Group plc, a 175-year-old industrial engineering specialist, operates across flow control, thermal solutions, construction and aerospace, supplying mission-critical technologies that enhance process efficiency and support decarbonisation. I...
Business Operations and StrategyStock Buyback
Smiths Group Buys Back 1.6 Million Shares in Ongoing Capital Return
Positive
Aug 17, 2026
Smiths Group plc has repurchased 1,641,060 ordinary shares on the London Stock Exchange from HSBC Bank over several trading venues between 10 and 14 August 2026. The shares, acquired at volume-weighted average prices around 2,600–2,700 pence...
Business Operations and StrategyStock Buyback
Smiths Group buys back nearly 2 million shares in latest capital management move
Positive
Aug 10, 2026
Smiths Group has repurchased 1,971,993 of its ordinary shares on the London Stock Exchange from HSBC Bank over the period 3–7 August 2026, at volume-weighted average prices around 2,660–2,710 pence per share across multiple trading ven...
Stock BuybackRegulatory Filings and Compliance
Smiths Group Updates Total Voting Rights Following Share Capital Changes
Neutral
Aug 3, 2026
Smiths Group plc has confirmed that, as of 31 July 2026, its issued share capital consists of 295,807,098 ordinary shares, each carrying one vote and with no shares held in treasury. The company noted that this figure should be used by investors w...
Regulatory Filings and Compliance
Smiths Group Directors Boost Holdings Through Routine Share Acquisitions
Positive
Aug 3, 2026
Smiths Group plc has disclosed share dealings by senior executives and non-executive directors, in line with regulatory requirements for persons discharging managerial responsibility. The transactions were executed in ordinary shares of 37.5p each...
Business Operations and StrategyStock Buyback
Smiths Group Steps Up Capital Management With £40m-Plus Share Buyback
Positive
Aug 3, 2026
Smiths Group plc has repurchased 1,561,624 of its ordinary shares on the London Stock Exchange via HSBC Bank, executing buybacks over several trading venues between 27 and 31 July 2026 at volume-weighted average prices around 2,600–2,700 pen...
Business Operations and StrategyStock Buyback
Smiths Group Expands Second Tranche of £1.5bn Share Buyback Programme
Positive
Jul 28, 2026
Smiths Group has expanded the maximum consideration for its second share buyback tranche from £400m to £700m, enabling the start of a £300m repurchase as part of its broader £1.5bn share buyback programme. The company has amend...
Business Operations and StrategyStock Buyback
Smiths Group Steps Up Share Buybacks to Support Capital Strategy
Positive
Jul 27, 2026
Smiths Group plc has repurchased 1,144,376 of its ordinary shares on the London Stock Exchange and alternative trading venues from HSBC Bank plc under previously announced instructions issued on 6 July 2026. The shares, acquired across multiple tr...
Business Operations and StrategyStock BuybackShareholder Meetings
Smiths Group Wins Strong Shareholder Backing for Share Buyback Authority
Positive
Jul 23, 2026
Smiths Group plc shareholders approved a special resolution at a General Meeting held on 23 July 2026 authorising the company to purchase its own shares. The motion received strong backing, with 97.42% of votes cast in favour and 2.58% against, re...
Business Operations and Strategy
Smiths Group seals £760m pension buy‑in as it completes strategic transformation
Positive
Jul 21, 2026
Smiths Group plc has completed a £760 million bulk annuity buy‑in for the Smiths Industries Pension Scheme with MG, fully insuring benefits for more than 10,000 members and bringing total coverage of the c.17,000‑member scheme und...
Business Operations and StrategyStock Buyback
Smiths Group steps up capital management with 1.1m-share buyback
Positive
Jul 20, 2026
Smiths Group plc has executed a substantial share buyback programme, purchasing 1,125,000 ordinary shares on the London Stock Exchange from HSBC Bank plc over several trading venues and days. The transactions were carried out under previously anno...
Business Operations and StrategyStock Buyback
Smiths Group launches 675,000-share buyback as part of capital management strategy
Positive
Jul 13, 2026
Smiths Group plc has initiated a significant share buyback, purchasing 675,000 ordinary shares on the London Stock Exchange through HSBC Bank over three trading days between 8 and 10 July 2026. The transactions were executed across multiple venues...
Business Operations and StrategyStock Buyback
Smiths Group Completes £600m Tranche and Launches Second Phase of £1bn Share Buyback
Positive
Jul 8, 2026
Smiths Group plc has completed the first £600m tranche of its £1bn share buyback programme, purchasing and cancelling 414,968 ordinary shares on the London Stock Exchange via HSBC over 6–7 July 2026. The company will now begin the ...
Business Operations and StrategyStock Buyback
Smiths Group Cancels 855,000 Shares After Latest Buyback Tranche
Positive
Jul 6, 2026
Smiths Group plc has launched further share buyback activity, purchasing 855,000 ordinary shares on the London Stock Exchange through HSBC Bank over the period from 29 June to 3 July 2026. The transactions were executed across multiple trading ven...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Smiths Group Launches Second Tranche of £1 Billion Share Buyback
Positive
Jul 6, 2026
Smiths Group plc has confirmed it will shortly begin the second tranche of its previously announced £1 billion share buyback programme, authorising up to £400 million of ordinary share repurchases subject to existing shareholder approval...
Stock BuybackRegulatory Filings and Compliance
Smiths Group updates total voting rights amid ongoing share buyback
Neutral
Jul 1, 2026
Smiths Group has confirmed that, as of 30 June 2026, its issued share capital consists of 300,021,442 ordinary shares, each carrying one vote, with no shares held in treasury. The company noted that this figure should be used by investors to asses...
Business Operations and StrategyStock BuybackM&A Transactions
Smiths Group completes £2bn Detection sale and boosts share buybacks
Positive
Jun 30, 2026
Smiths Group has completed the £2bn sale of its Smiths Detection business to funds advised by CVC Capital Partners, surpassing earlier guidance with net cash proceeds of over £1.9bn. Together with the earlier divestment of Smiths Interco...
Business Operations and StrategyStock Buyback
Smiths Group Cancels 450,000 Shares After London Buyback
Positive
Jun 29, 2026
Smiths Group has repurchased 450,000 of its ordinary shares on the London Stock Exchange via HSBC Bank, under instructions first issued in November 2025. The shares, bought across multiple trading venues between 22 and 26 June 2026 at volume-weigh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.