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Smiths News PLC
(LSE:SNWS)
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Rating:72Outperform
Price Target:
81.00 p
▲(17.39% Upside)
Action:Reiterated
Date:08/07/26
The score is driven by strong valuation (low P/E and high dividend yield) and supportive technicals (price above key moving averages with positive MACD). These positives are tempered by moderate financial performance, mainly due to balance sheet risk from negative equity despite strong free cash flow generation.
Positive Factors
Free Cash Flow Growth
A 153.4% increase in free cash flow indicates strong, durable cash-generation capacity. Robust operating cash conversion and healthy FCF-to-net-income provide flexibility to fund dividends, capex, and debt reduction, supporting resilience through mild revenue volatility.
Negative Factors
Negative Shareholders' Equity
Negative shareholders' equity and an elevated debt-to-equity profile are structural balance-sheet weaknesses. They constrain financial flexibility, increase refinancing and covenant risk, and can force deleveraging measures that limit investment and long-term strategic options.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Growth
A 153.4% increase in free cash flow indicates strong, durable cash-generation capacity. Robust operating cash conversion and healthy FCF-to-net-income provide flexibility to fund dividends, capex, and debt reduction, supporting resilience through mild revenue volatility.
Read all positive factors
Smiths News PLC (SNWS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£169.11M
Dividend Yield12.11%
Average Volume (3M)550.97K
Price to Earnings (P/E)6.4
Beta (1Y)0.62
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. Volume290,503
30 Day Avg. Volume550,970
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
£90.00Price Target Upside30.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.1
Revenue Forecast (FY)£1.00B
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 PLC primarily makes money by operating as an intermediary between publishers and retail outlets, earning revenue for wholesaling and distributing newspapers and magazines throughout the UK. Its core revenue stream comes from the sale a...
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 | 51.20M | 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
70.06
Positive
67.94
Positive
66.35
Positive
Market Momentum
-0.09
Negative
53.97
Neutral
46.67
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 70.01, below the 50-day MA of 70.06, and above the 200-day MA of 66.35, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | £507.36M | 18.88 | 12.74% | 2.60% | -9.72% | 6.73% | |
72 Outperform | £169.11M | 6.35 | 350.65% | 12.11% | -5.18% | -2.29% | |
65 Neutral | £7.06B | 23.11 | 9.13% | 2.17% | 3.24% | -25.23% | |
64 Neutral | £260.33M | 8.24 | 3.57% | 5.73% | -8.41% | -51.11% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
50 Neutral | £132.86M | -0.75 | -36.14% | 14.01% | -6.48% | -458.95% |
* Communication Services Sector Average
GB:SNWS
Smiths News PLC
70.60
19.11
37.12%
GB:BMY
Bloomsbury Publishing
623.00
140.84
29.21%
GB:FUTR
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296.80
-414.65
-58.28%
GB:PSON
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1,178.50
157.38
15.41%
GB:RCH
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42.10
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-33.06%
Smiths News PLC Corporate Events
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...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Smiths News grants new SAYE share options to CEO and CFO
Positive
Jun 29, 2026
Smiths News plc has granted its Chief Executive Officer Jonathan Bunting and Chief Financial Officer Richard Clay options to purchase 33,841 ordinary shares each at an exercise price of £0.5378 under its Save As You Earn (SAYE) Plan. The thre...
Business Operations and StrategyFinancial Disclosures
Smiths News Wins National Distribution Deal with Associated Newspapers
Positive
Jun 29, 2026
Smiths News has secured a new long-term contract with Associated Newspapers Limited, publisher of the Daily Mail, The Mail on Sunday and The i Paper, on enhanced commercial terms that expand its exclusive distribution territories to effectively co...
Business Operations and StrategyFinancial Disclosures
Smiths News Wins Decade-Long National Distribution Deal with News UK
Positive
Jun 17, 2026
Smiths News PLC has secured a transformational long-term contract with News UK Ireland, publisher of The Sun, The Times and The Sunday Times, that will make it the exclusive wholesale distributor of these titles across all of Great Britain from J...
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.