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Smiths Group plc
(LSE:SMIN)
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Rating:69Neutral
Price Target:
2,900.00 p
▲(10.81% Upside)
Action:Downgraded
Date:08/04/26
The score is driven primarily by solid financial quality (strong cash generation, healthy margins, and moderate leverage) and a constructive technical trend (price above key moving averages with supportive momentum). Offsetting these positives are a relatively expensive valuation (P/E 34.31 with modest 1.77% yield) and the key fundamental risk of pressured/declining revenue growth.
Positive Factors
Strong cash generation
Robust cash conversion and double-digit free cash flow growth provide durable funding for capex, R&D, buybacks and debt service. High cash conversion cushions earnings volatility, supports reinvestment and shareholder returns and improves financial flexibility over the next several quarters.
Negative Factors
Declining revenue trend
Material negative revenue growth in the latest year signals weakening demand or lost share in core markets. Persistent top-line contraction can erode scale benefits, pressure absolute profit dollars despite healthy margins, and limit capacity to fund growth initiatives or sustain payout levels over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust cash conversion and double-digit free cash flow growth provide durable funding for capex, R&D, buybacks and debt service. High cash conversion cushions earnings volatility, supports reinvestment and shareholder returns and improves financial flexibility over the next several quarters.
Read all positive factors
Smiths Group plc (SMIN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£7.38B
Dividend Yield1.8%
Average Volume (3M)967.36K
Price to Earnings (P/E)33.3
Beta (1Y)1.29
Revenue Growth-31.27%
EPS Growth-13.26%
CountryUK
Employees16,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.77
Shares Outstanding289,311,300
10 Day Avg. Volume940,510
30 Day Avg. Volume967,361
Financial Highlights & Ratios
PEG Ratio2.32
Price to Book (P/B)3.95
Price to Sales (P/S)2.76
P/FCF Ratio20.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£65,270.00Price Target Upside2394.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
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 systems and by providing associated services and aftermarket support. A major revenue stream comes from the sale of detection and screening equipment (e.g., security screening a...
Smiths Group plc Earnings Call Summary
Earnings Call Date:Sep 23, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 22, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong fiscal year 2025 performance with significant organic revenue growth and operating profit margin expansion. The company successfully navigated challenges, including a cyber incident and balance sheet overstatement, while continuing to invest in acquisitions and shareholder returns. A positive outlook for fiscal year 2026 is supported by a strong order book and ongoing strategic initiatives.Positive Updates
Record Organic Revenue Growth
Fiscal year 2025 marks the fourth consecutive year of organic revenue growth, with group organic revenue up 8.9%, exceeding the 6% to 8% guidance.
Negative Updates
Cyber Incident Impact on John Crane
John Crane faced operational challenges due to a cyber incident, affecting aftermarket growth and causing a slower-than-expected recovery.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Organic Revenue Growth
Fiscal year 2025 marks the fourth consecutive year of organic revenue growth, with group organic revenue up 8.9%, exceeding the 6% to 8% guidance.
Read all positive updates
Company Guidance
In the recent call, Smiths Group highlighted its strong financial performance for fiscal year 2025, emphasizing a 4th consecutive year of organic revenue growth at 8.9%, surpassing the initial guidance range of 6% to 8%. The company expanded its operating profit margins by 60 basis points to 17.4%, aligning with the top end of its guidance. Earnings per share increased by 14.8%, and the return on capital employed improved by 170 basis points to 18.1%. Smiths also achieved a 99% operating cash conversion and is progressing with a GBP 0.5 billion share buyback program, having returned GBP 460 million to shareholders in the year. The strategic separation of Smiths Interconnect and Smiths Detection is underway, with Interconnect reported as discontinued operations. Looking forward, Smiths expects 4% to 6% organic revenue growth in fiscal year 2026, supported by a strong order book and ongoing margin expansion driven by operational efficiencies and strategic initiatives.Smiths Group plc Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.22B | 2.92B | 3.13B | 3.04B | 2.57B | 2.41B |
| Gross Profit | 211.00M | 410.00M | 1.17B | 1.12B | 961.00M | 915.00M |
| EBITDA | 418.00M | 535.00M | 580.00M | 580.00M | 287.00M | 428.00M |
| Net Income | 253.00M | 292.00M | 250.00M | 231.00M | 13.00M | 157.00M |
Balance Sheet | ||||||
| Total Assets | 4.14B | 4.01B | 4.23B | 4.36B | 5.22B | 5.34B |
| Cash, Cash Equivalents and Short-Term Investments | 345.00M | 195.00M | 459.00M | 285.00M | 1.06B | 405.00M |
| Total Debt | 1.21B | 667.00M | 659.00M | 654.00M | 1.17B | 1.50B |
| Total Liabilities | 2.46B | 1.95B | 1.98B | 1.95B | 2.50B | 2.91B |
| Stockholders Equity | 1.66B | 2.04B | 2.23B | 2.38B | 2.70B | 2.40B |
Cash Flow | ||||||
| Free Cash Flow | 310.00M | 384.00M | 332.00M | 212.00M | 191.00M | 418.00M |
| Operating Cash Flow | 374.00M | 456.00M | 418.00M | 293.00M | 279.00M | 535.00M |
| Investing Cash Flow | -104.00M | -160.00M | 39.00M | -108.00M | 1.25B | -205.00M |
| Financing Cash Flow | -239.00M | -517.00M | -269.00M | -945.00M | -985.00M | -239.00M |
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 | £7.20B | 22.22 | 32.41% | 1.15% | 7.67% | 45.97% | |
76 Outperform | £3.94B | 32.52 | 21.48% | 1.72% | 2.22% | 25.89% | |
69 Neutral | £7.38B | 33.34 | 13.71% | 1.80% | -31.27% | -13.26% | |
67 Neutral | £5.13B | 25.97 | 16.03% | 2.44% | 5.07% | 21.70% | |
65 Neutral | £7.03B | 26.71 | 13.45% | 1.53% | 5.84% | -14.62% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £6.28B | 39.48 | 5.63% | 1.51% | 8.59% | -48.09% |
* Industrials Sector Average
GB:SMIN
Smiths Group plc
2,601.00
265.77
11.38%
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Smiths Group plc Corporate Events
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...
Stock Buyback
Smiths Group Cancels 450,000 Shares After Buyback on London Market
Positive
Jun 22, 2026
Smiths Group has repurchased 450,000 of its ordinary shares on the London Stock Exchange through HSBC over several trading venues between 15 and 19 June 2026, paying volume-weighted average prices around 2,58 per share. The company plans to cance...
Business Operations and StrategyStock Buyback
Smiths Group Cancels 450,000 Shares After London Buyback
Positive
Jun 15, 2026
Smiths Group plc has repurchased 450,000 of its ordinary shares on the London Stock Exchange through HSBC over several trading venues between 8 and 12 June 2026. The company plans to cancel these shares, effectively reducing its share capital and ...
Business Operations and StrategyStock Buyback
Smiths Group Cancels 450,000 Shares After June Buyback
Positive
Jun 8, 2026
Smiths Group has repurchased 450,000 of its ordinary shares on the London Stock Exchange through HSBC over several trading venues between 1 and 5 June 2026, at volume-weighted average prices generally in the mid-2,400 pence range. The company inte...
Business Operations and StrategyExecutive/Board Changes
Smiths Group Appoints Energy Industry Veteran Laurence Mulliez to Board
Positive
Jun 8, 2026
Smiths Group has strengthened its board with the appointment of Laurence Mulliez as an independent non-executive director, effective 1 September 2026. Mulliez brings extensive senior leadership experience from global energy and industrial business...
Stock BuybackRegulatory Filings and Compliance
Smiths Group Confirms Total Voting Rights Ahead of Buyback Cancellations
Neutral
Jun 1, 2026
Smiths Group plc reported that, as of the close of business on 29 May 2026, its issued share capital consisted of 302,181,442 ordinary shares of 37.5p each, all admitted to trading in London, with each share carrying one vote and none held in trea...
Stock Buyback
Smiths Group Buys Back and Cancels 360,000 Shares
Positive
Jun 1, 2026
Smiths Group plc has repurchased 360,000 of its ordinary shares on the London Stock Exchange from HSBC Bank under previously announced buyback instructions. The company plans to cancel all the repurchased shares, which will reduce the number of sh...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Smiths Group Cancels 450,000 Shares After May Buyback From HSBC
Positive
May 26, 2026
Smiths Group plc has repurchased 450,000 of its ordinary shares on the London Stock Exchange from HSBC Bank over five trading days in May 2026, paying volume-weighted average prices around 2,47–2,51 pounds per share across multiple trading v...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Smiths Group Trims Revenue Outlook but Sticks to Margin Targets Amid Portfolio Shake-Up
Negative
May 21, 2026
Smiths Group reported flat organic revenue in the third quarter and 0.2% organic growth over nine months, as strength in John Crane and aerospace was offset by weakness in U.S. residential construction and tough comparators in Flex-Tek. The compan...
Executive/Board ChangesRegulatory Filings and Compliance
Smiths Group CFO Granted Options Under Sharesave Scheme
Neutral
May 19, 2026
Smiths Group plc disclosed that its Chief Financial Officer, Julian Fagge, has been granted a share option under the company’s Sharesave Scheme. The award relates to 888 ordinary shares at an option price of 2,048p, in line with regulatory r...
Business Operations and StrategyStock Buyback
Smiths Group Cancels 450,000 Shares After Latest Buyback Tranche
Positive
May 18, 2026
Smiths Group plc has repurchased 450,000 of its ordinary shares on the London Stock Exchange from HSBC Bank across multiple trading venues between 11 and 15 May 2026. The company intends to cancel the bought-back shares, a move that will reduce it...
Business Operations and StrategyStock Buyback
Smiths Group Cancels 450,000 Shares After May Buyback
Positive
May 18, 2026
Smiths Group has repurchased 450,000 of its ordinary shares on the London Stock Exchange, executing the buyback through HSBC across multiple trading venues between 11 and 15 May 2026. The company intends to cancel all of the repurchased shares, ef...
Business Operations and StrategyStock Buyback
Smiths Group Cancels 360,000 Shares After Buyback Programme
Positive
May 11, 2026
Smiths Group has repurchased 360,000 of its ordinary shares on the London Stock Exchange through HSBC Bank over several trading venues between 5 and 8 May 2026. The company plans to cancel these shares, effectively reducing its share capital and p...
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.