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Smiths News PLC
(LSE:SNWS)
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Rating:70Outperform
Price Target:
83.00 p
▲(20.29% Upside)
Action:Reiterated
Date:10/01/26
The score is driven mainly by attractive valuation (low P/E and very high dividend yield) and solid cash-flow strength. These positives are balanced by meaningful balance-sheet risk (negative equity/high leverage) and only moderate technical confirmation (above key moving averages, but slightly negative MACD).
Positive Factors
Strong cash generation
Rapid free cash flow growth and healthy conversion from earnings indicate that the distribution operation is generating usable cash internally. This supports debt reduction, ongoing investment in logistics capacity, and greater resilience when revenue conditions are challenging.
Negative Factors
Declining revenue
Revenue contraction indicates that the company is operating with a shrinking top line, which can make fixed distribution infrastructure and delivery costs harder to absorb. Persistent volume or sales pressure could constrain investment and reduce the earnings base.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Rapid free cash flow growth and healthy conversion from earnings indicate that the distribution operation is generating usable cash internally. This supports debt reduction, ongoing investment in logistics capacity, and greater resilience when revenue conditions are challenging.
Read all positive factors
Smiths News PLC (SNWS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£194.03M
Dividend Yield10.56%
Average Volume (3M)647.78K
Price to Earnings (P/E)7.3
Beta (1Y)0.49
Revenue Growth-5.18%
EPS Growth-2.29%
CountryUK
Employees1,357
SectorCommunication Services
Sector Strength97
IndustryPublishing
Share Statistics
EPS (TTM)0.11
Shares Outstanding247,659,200
10 Day Avg. Volume626,398
30 Day Avg. Volume647,781
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)14.19
Price to Sales (P/S)0.13
P/FCF Ratio3.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£91.50Price Target Upside32.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.1
Revenue Forecast (FY)£998.62M
Smiths News PLC Business Overview & Revenue Model
Company Description
Smiths News plc, operating with its various divisions, primarily functions as a wholesale distributor of newspapers and magazines across both the United Kingdom and global markets. Beyond its core distribution, the company extends its services to ...
How the Company Makes Money
Smiths News primarily makes money by providing wholesale distribution services for newspapers and magazines in the UK. Its main revenue stream comes from delivering print products from publishers to retailers and earning distribution-related incom...
Smiths News PLC Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
50
Neutral
Cash Flow
75
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 1.06B | 1.10B | 1.09B | 1.09B | 1.11B |
| Gross Profit | 74.40M | 74.60M | 73.20M | 72.50M | 72.70M | 73.40M |
| EBITDA | 48.00M | 50.90M | 48.90M | 47.30M | 44.90M | 50.00M |
| Net Income | 27.00M | 28.30M | 25.50M | 25.10M | 23.40M | 26.30M |
Balance Sheet | ||||||
| Total Assets | 169.60M | 174.00M | 179.60M | 195.30M | 189.40M | 186.20M |
| Cash, Cash Equivalents and Short-Term Investments | 10.50M | 8.20M | 7.00M | 37.30M | 35.30M | 19.30M |
| Total Debt | 29.60M | 32.20M | 48.50M | 63.40M | 74.70M | 100.50M |
| Total Liabilities | 163.70M | 164.50M | 182.90M | 211.60M | 221.40M | 243.90M |
| Stockholders Equity | 5.90M | 9.50M | -3.30M | -16.30M | -32.00M | -57.70M |
Cash Flow | ||||||
| Free Cash Flow | 50.10M | 42.70M | 14.70M | 33.00M | 47.80M | 39.00M |
| Operating Cash Flow | 52.60M | 46.60M | 18.10M | 36.40M | 49.80M | 41.40M |
| Investing Cash Flow | -3.10M | -4.50M | -4.40M | -3.50M | 12.30M | 4.40M |
| Financing Cash Flow | -45.30M | -40.90M | -44.00M | -30.90M | -46.10M | -76.90M |
Smiths News PLC Technical Analysis
Positive
69.00
Price Trends
72.68
Positive
71.05
Positive
68.21
Positive
Market Momentum
2.60
Negative
65.92
Neutral
67.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SNWS, the sentiment is Positive. The current price of 69 is below the 20-day moving average (MA) of 77.76, below the 50-day MA of 72.68, and above the 200-day MA of 68.21, indicating a bullish trend. The MACD of 2.60 indicates Negative momentum. The RSI at 65.92 is Neutral, neither overbought nor oversold. The STOCH value of 67.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SNWS.
Smiths News PLC Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £525.27M | 26.16 | 9.41% | 2.58% | -6.66% | -10.04% | |
70 Outperform | £194.03M | 7.29 | 350.65% | 10.56% | -5.18% | -2.29% | |
65 Neutral | £7.80B | 25.52 | 9.13% | 1.97% | 3.24% | -25.23% | |
62 Neutral | £247.55M | 7.91 | 3.57% | 5.97% | -8.41% | -51.11% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | £153.85M | -0.87 | -36.14% | 12.10% | -6.48% | -458.95% |
* Communication Services Sector Average
GB:SNWS
Smiths News PLC
81.00
27.38
51.07%
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Smiths News PLC Corporate Events
Business Operations and StrategyFinancial Disclosures
Smiths News lifts profit outlook and launches national distribution push
Positive
Sep 29, 2026
Smiths News PLC expects its results for the 52-week period ended 29 August 2026 to come in ahead of market expectations, reflecting strong trading across its core news and magazine operations. Demand for collectables in the second half, including ...
Business Operations and StrategyRegulatory Filings and Compliance
Smiths News Streamlines Share Schemes as Legacy Plans Expire
Neutral
Sep 3, 2026
Smiths News plc reported that under its Connect Group Sharesave Scheme, the balance of unallotted securities remained at 100,000 over the period from 1 March to 1 September 2026, with no new securities issued or increases to the block listing. Thi...
Business Operations and StrategyFinancial Disclosures
Smiths News Secures Major Long-Term Magazine Distribution Contracts
Positive
Jul 17, 2026
Smiths News PLC has secured new long-term national wholesale contracts with Frontline Limited and Seymour Distribution Limited, expanding its exclusive magazine distribution territories to cover all of Great Britain from April 2030. The agreements...
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.