tiprankstipranks
Trending News
More News >
Smith & Nephew Snats (SNN)
NYSE:SNN
Advertisement

Smith & Nephew Snats (SNN) AI Stock Analysis

Compare
193 Followers

Top Page

SNN

Smith & Nephew Snats

(NYSE:SNN)

Select Model
Select Model
Select Model
Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$40.00
▲(13.93% Upside)
Smith & Nephew Snats shows strong financial performance with robust revenue and profit growth, which is the most significant factor in its stock score. The earnings call provided positive insights into future growth, despite some challenges in emerging markets and potential tariff impacts. The technical analysis indicates weak momentum, and the stock's valuation is relatively high, which slightly offsets the overall positive outlook.
Positive Factors
Revenue Growth
Consistent revenue growth across all regions and business units indicates strong market demand and effective business strategies, supporting long-term financial health.
Cash Flow Generation
Robust cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns, which are crucial for sustainable growth.
Product Innovation
Growth in Advanced Wound Management reflects successful product innovation and market adaptation, strengthening competitive positioning in the medical technology sector.
Negative Factors
Emerging Markets Challenges
Declines in emerging markets, particularly China, could limit growth opportunities and revenue diversification, impacting long-term expansion strategies.
Tariff Impacts
Tariff-related costs can erode profit margins and increase operational expenses, posing a risk to financial performance and competitiveness.
Reimbursement Headwinds
Potential changes in reimbursement policies may affect sales and profitability, particularly in Advanced Wound Management, challenging future revenue streams.

Smith & Nephew Snats (SNN) vs. SPDR S&P 500 ETF (SPY)

Smith & Nephew Snats Business Overview & Revenue Model

Company DescriptionSmith & Nephew Snats (SNN) is a global medical technology company specializing in advanced wound management, orthopedics, and sports medicine. The company focuses on developing and manufacturing innovative products that enhance patient outcomes and improve the quality of care for healthcare professionals. Key product offerings include advanced wound dressings, surgical instruments, and orthopedic implants designed to facilitate faster recovery and reduce complications during medical procedures.
How the Company Makes MoneySmith & Nephew Snats generates revenue through multiple streams, primarily from the sale of medical devices and advanced wound care products. The company has a diverse portfolio that includes high-margin products in its orthopedics and wound management segments, which contribute significantly to overall sales. Additionally, SNN benefits from ongoing partnerships with healthcare providers and institutions, ensuring a steady demand for its products. The company also engages in research and development initiatives to innovate and expand its product lines, further driving revenue growth. Strategic collaborations with hospitals and surgical centers enhance market penetration and access to new customer bases, supporting its earnings potential.

Smith & Nephew Snats Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue contributions from different business units, indicating which segments are leading growth and how diversified the company's income streams are.
Chart InsightsSmith & Nephew's Orthopaedics and Advanced Wound Management segments are experiencing robust growth, with recent earnings highlighting a 5.5% and 10.2% increase respectively. This aligns with strategic improvements and operational efficiencies. However, challenges such as tariff impacts and softness in the U.S. Knee segment could pose risks. The company's strong cash flow and announced $500 million share buyback indicate confidence in sustaining growth, although emerging market declines, particularly in China, remain a concern.
Data provided by:Main Street Data

Smith & Nephew Snats Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Positive
Smith & Nephew reported strong revenue growth, profitability improvements, and significant cash flow increases, along with a major share buyback announcement. However, challenges remain, particularly in emerging markets, and potential headwinds from U.S. tariffs and reimbursement changes. Overall, the company appears optimistic about sustaining growth and improving margins.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Smith & Nephew reported 6.7% underlying revenue growth in the quarter, with all regions and business units showing acceleration. Revenue in the quarter was $1.6 billion.
Profitability Improvements
The company achieved a 100 basis point expansion in trading margin in the first half and remains on track for a full year margin guidance of 19% to 20%.
Significant Cash Flow Increase
Trading cash flow increased by 70%, resulting in almost $250 million of free cash flow in the first half.
Share Buyback Announcement
Smith & Nephew announced a $500 million share buyback in the second half of 2025, fully funded by 2025 cash flow and existing balances.
Orthopaedics Margin Expansion
Orthopaedics margin expanded by 230 basis points in the first half due to transformation initiatives.
Advanced Wound Management Growth
Advanced Wound Management grew by 10.2% due to a rebound in Bioactives.
Negative Updates
Emerging Markets Decline
Emerging markets declined by 0.2%, with strong growth in the Middle East and India offset by challenges in China.
Impact of U.S. Tariffs
The company expects a net headwind of $15 million to $20 million in 2025 due to U.S. tariffs.
Slower U.S. Knee Growth
U.S. Knees showed slower growth due to surgeon base procedure slowdown and portfolio rationalization efforts.
Potential Headwinds from Skin Substitute Reimbursement
Proposed updates to Medicare reimbursement could pose a headwind to Advanced Wound Management sales and profitability in 2026.
Company Guidance
During the Smith & Nephew second quarter and first half results meeting, CEO Deepak Nath and CFO John Rogers provided detailed guidance on the company's performance and future outlook. The company reported a 6.7% underlying revenue growth in the quarter, with a trading margin expansion of 100 basis points in the first half, slightly ahead of expectations. The full-year margin guidance remains between 19% to 20%, despite a $15 million to $20 million headwind from tariffs anticipated in 2025. The company also highlighted a 70% increase in trading cash flow and nearly $250 million in free cash flow for the first half. A $500 million share buyback is planned for the second half, funded by 2025 cash flow and existing balances. Geographically, the U.S. market showed an 8.7% growth, while emerging markets experienced a slight decline of 0.2%, mainly due to volume-based procurement impacts in China. The company's Orthopaedics business grew by 5.5%, with significant advancements in the U.S. Recon and Robotics, marking the fourth consecutive quarter of improvement. Sports Medicine and ENT achieved a 5.7% growth, and Advanced Wound Management increased by 10.2%, driven by a rebound in Bioactives. The company remains focused on operational efficiencies, inventory management, and expanding its innovation pipeline to sustain growth and profitability.

Smith & Nephew Snats Financial Statement Overview

Summary
Smith & Nephew Snats demonstrates strong financial health with impressive revenue and profit growth, solid profitability margins, and efficient cash flow management. Despite a slight increase in leverage, the company's balanced capital structure and improved returns to shareholders position it well in the Medical Equipment & Supplies industry.
Income Statement
85
Very Positive
Smith & Nephew Snats has shown consistent revenue growth with a notable increase of 4.7% from 2023 to 2024. The gross profit margin stands strong at 69.6%, highlighting effective cost management. The net profit margin improved significantly from 4.7% in 2023 to 7.1% in 2024, demonstrating enhanced profitability. EBIT and EBITDA margins increased to 11.3% and 21.3% respectively, reflecting operational efficiency improvements.
Balance Sheet
78
Positive
The company maintains a solid equity position with an equity ratio of 50.8% in 2024, indicating a balanced capital structure. However, the debt-to-equity ratio increased slightly to 0.63, suggesting a cautious approach to leverage. ROE improved to 7.8%, signifying better returns to shareholders, driven by increased net income.
Cash Flow
82
Very Positive
Smith & Nephew Snats experienced a robust free cash flow growth of 234.8%, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 2.40 reflects efficient cash management. The free cash flow to net income ratio of 1.47 further supports the company’s strong cash flow position.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.97B5.81B5.55B5.21B5.21B4.56B
Gross Profit4.18B4.05B3.82B3.67B3.67B3.16B
EBITDA1.44B1.24B979.00M943.00M1.24B866.00M
Net Income493.64M412.00M263.00M223.00M524.00M448.00M
Balance Sheet
Total Assets10.68B10.35B9.99B9.97B10.92B11.01B
Cash, Cash Equivalents and Short-Term Investments675.41M619.00M302.00M350.00M1.29B1.76B
Total Debt3.45B3.32B3.08B2.87B3.34B3.69B
Total Liabilities5.15B5.09B4.77B4.71B5.35B5.73B
Stockholders Equity5.53B5.26B5.22B5.26B5.57B5.28B
Cash Flow
Free Cash Flow799.32M606.00M181.00M110.00M469.00M492.00M
Operating Cash Flow1.15B987.00M608.00M468.00M877.00M935.00M
Investing Cash Flow-345.22M-569.00M-448.00M-472.00M-691.00M-606.00M
Financing Cash Flow-676.96M-86.00M-200.00M-926.00M-645.00M1.16B

Smith & Nephew Snats Technical Analysis

Technical Analysis Sentiment
Negative
Last Price35.11
Price Trends
50DMA
36.23
Negative
100DMA
32.96
Positive
200DMA
29.62
Positive
Market Momentum
MACD
-0.16
Positive
RSI
40.20
Neutral
STOCH
22.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNN, the sentiment is Negative. The current price of 35.11 is below the 20-day moving average (MA) of 36.04, below the 50-day MA of 36.23, and above the 200-day MA of 29.62, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 40.20 is Neutral, neither overbought nor oversold. The STOCH value of 22.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNN.

Smith & Nephew Snats Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$23.23B35.769.73%0.99%2.47%63.68%
73
Outperform
$15.00B31.069.20%2.14%5.78%61.52%
73
Outperform
$18.76B23.066.52%1.01%4.11%-14.43%
73
Outperform
$7.64B21.838.62%17.43%775.48%
71
Outperform
$22.14B95.7219.18%25.99%-40.46%
56
Neutral
$26.20B-7.10%3.24%-0.76%-55.03%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SNN
Smith & Nephew Snats
35.11
7.16
25.62%
PODD
Insulet
314.52
82.01
35.27%
PHG
Koninklijke Philips
27.33
-4.08
-12.99%
STE
Steris
235.83
9.93
4.40%
ZBH
Zimmer Biomet Holdings
94.71
-9.14
-8.80%
GMED
Globus Medical
56.57
-14.62
-20.54%

Smith & Nephew Snats Corporate Events

Smith & Nephew Announces Share Capital Update for September 2025
Oct 1, 2025

Smith & Nephew plc, a company listed on the London Stock Exchange, announced its total issued share capital as of September 30, 2025. The company reported that it has 877,724,845 ordinary shares, with 24,102,908 held in treasury, resulting in 853,621,937 shares with voting rights. This information is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.

Smith+Nephew CFO Relocates to US to Strengthen Market Focus
Sep 30, 2025

Smith+Nephew announced that its Chief Financial Officer, John Rogers, will relocate to the United States effective September 29, 2025, to enhance leadership and oversight in the region, which contributes significantly to the company’s revenue. This move aligns with the company’s strategy to focus on the US market, allowing closer collaboration with senior leaders and supporting the execution of business strategies. Rogers’ remuneration will be adjusted to align with US market practices, with changes to his base salary, pension cash allowance, and performance-related awards.

Smith & Nephew Announces Share Sale by Chief Compliance Officer
Sep 9, 2025

On September 8, 2025, Smith & Nephew plc reported the sale of ordinary shares by Alison Parkes, the Chief Compliance Officer, on the London Stock Exchange. This transaction, disclosed in accordance with the UK Market Abuse Regulation, highlights the company’s commitment to transparency in its financial dealings, potentially impacting investor perceptions and market positioning.

Smith & Nephew Announces Share Sale by Executive
Sep 9, 2025

On September 9, 2025, Smith & Nephew announced a transaction involving the sale of ordinary shares by Vasant Padmanabhan, President of Research & Development ENT, who is classified as a Person Discharging Managerial Responsibilities (PDMR). The transaction, conducted outside the trading venue, involved the sale of 17,643 shares at a price of £14.25 each. This announcement is made in compliance with the UK Market Abuse Regulation, highlighting the company’s commitment to transparency in its financial dealings.

Smith & Nephew Announces Updated Share Capital Structure
Sep 2, 2025

Smith & Nephew plc, a company involved in the healthcare industry, announced on September 1, 2025, that its total issued share capital as of August 31, 2025, consists of 877,718,356 ordinary shares, with 6,748,465 held in treasury. This results in a total of 870,969,891 voting shares, which shareholders should use as a reference for notifying changes in their interest under FCA rules.

Smith & Nephew Grants Share Awards to Executive
Aug 29, 2025

On August 27, 2025, Smith & Nephew plc announced the granting of performance and restricted share awards to Ajay Dhankhar, the Chief Corporate Strategy & Development Officer, under the Global Share Plan 2020 and Restricted Share Plan 2024. These awards, which are based on the company’s share price on the London Stock Exchange, are part of the company’s incentive strategy to align managerial interests with shareholder value and ensure long-term commitment from key personnel.

Smith+Nephew Appoints Dr. Garheng Kong as Non-Executive Director
Aug 28, 2025

On August 28, 2025, Smith+Nephew announced the appointment of Dr. Garheng Kong as an independent Non-Executive Director and member of the Audit Committee, effective September 1, 2025. Dr. Kong brings extensive experience in the medtech and biopharma sectors, having held various executive and non-executive roles, which is expected to enhance the company’s strategic direction and innovation capabilities.

Smith & Nephew Aligns Director Compensation with Shareholder Interests
Aug 26, 2025

On August 22, 2025, Smith & Nephew plc executed a share purchase transaction as part of its remuneration policy to compensate Non-Executive Directors with shares instead of cash for part of their annual fees. This move, disclosed on August 26, 2025, aligns with the UK Market Abuse Regulation and reflects the company’s strategic approach to align director interests with shareholder value, potentially impacting its governance and stakeholder relations.

Smith & Nephew Director Acquires Shares as Part of Compensation Strategy
Aug 22, 2025

On August 20, 2025, Sybella Stanley, a Non-Executive Director at Smith & Nephew plc, purchased 1,520 ordinary shares of the company on the London Stock Exchange. This transaction was part of the company’s policy to compensate its non-executive directors partially in shares, reflecting a strategic alignment of management interests with shareholder value.

Smith & Nephew Announces Share Plan Vesting and Director Purchase
Aug 20, 2025

On August 18, 2025, Smith & Nephew plc announced the partial vesting of awards under its Restricted Share Plan 2024, with some shares sold to cover tax obligations. Additionally, David King, a Non-Executive Director, purchased American Depository Receipts on the New York Stock Exchange, reflecting confidence in the company’s market position.

Smith & Nephew Announces Partial Vesting of 2023 Share Awards
Aug 13, 2025

On August 12, 2025, Smith & Nephew plc announced the partial vesting of share awards under its Global Share Plan 2020. These awards, initially granted on August 11, 2023, will vest in equal tranches over three years. The recent vesting led to some shares being sold to cover tax obligations, impacting the company’s share distribution and potentially influencing stakeholder perceptions of executive compensation strategies.

BlackRock Adjusts Holdings in Smith & Nephew
Aug 7, 2025

On August 1, 2025, BlackRock, Inc. adjusted its holdings in Smith & Nephew PLC, a UK-based company, by acquiring or disposing of voting rights. The change resulted in BlackRock holding 6.61% of the voting rights, down from a previous 6.83%. This adjustment in holdings could influence Smith & Nephew’s shareholder dynamics and potentially impact its strategic decisions.

Smith & Nephew’s Voting Rights Shift Following BlackRock’s Acquisition
Aug 7, 2025

On August 5, 2025, Smith & Nephew plc experienced a change in its voting rights structure due to an acquisition or disposal by BlackRock, Inc. The transaction resulted in BlackRock holding 6.76% of the total voting rights, up from a previous 6.61%. This adjustment in holdings could influence Smith & Nephew’s shareholder dynamics and potentially impact its strategic decisions moving forward.

Smith & Nephew Discloses Managerial Share Sale
Aug 7, 2025

On August 6, 2025, Elga Lohler, Chief HR Officer of Smith & Nephew plc, sold ordinary shares of the company on the London Stock Exchange. This transaction was publicly disclosed in compliance with the UK Market Abuse Regulation, highlighting transparency in managerial dealings which could impact stakeholder trust and market perception.

Smith & Nephew Announces Strong H1 2025 Results and $500 Million Share Buyback
Aug 5, 2025

Smith & Nephew reported strong financial results for the second quarter and first half of 2025, with significant revenue growth and improved profitability. The company announced a $500 million share buyback, reflecting strong cash generation and a solid balance sheet. Revenue growth was driven by new product launches and operational improvements, with all regions and business units contributing positively. The company maintained its full-year guidance, expecting continued revenue growth and trading profit margin expansion.

Smith+Nephew Launches $500 Million Share Buyback Program
Aug 5, 2025

Smith+Nephew announced on August 5, 2025, a share buyback program to return $500 million to shareholders, reflecting strong cash generation and a robust balance sheet from its 12-Point Plan transformation. The program, running from August 5 to December 31, 2025, involves repurchasing shares through J.P. Morgan Securities, with the intent to reduce issued share capital and return surplus capital to shareholders, without affecting growth plans.

Smith & Nephew Reports Strong Q2 2025 Results and Announces $500 Million Share Buyback
Aug 5, 2025

On August 5, 2025, Smith & Nephew announced its second quarter and first half 2025 financial results, showcasing strong revenue growth, trading margin expansion, and improved cash flow. The company reported a 7.8% increase in second-quarter revenue and a 4.7% rise in half-year revenue compared to the previous year. Operating profit surged by 30.6%, and the company generated $244 million in free cash flow. Smith & Nephew also announced a $500 million share buyback, reflecting strong cash generation and a robust balance sheet. The company maintained its full-year guidance, expecting underlying revenue growth of around 5.0% and trading profit margin expansion. Recent product launches have driven growth across all business units, contributing significantly to the company’s financial performance.

Smith & Nephew Announces Share Capital Update as of July 31, 2025
Aug 1, 2025

On August 1, 2025, Smith & Nephew plc announced its total issued share capital as of July 31, 2025, which comprises 877,710,150 ordinary shares, including 1,748,679 held in treasury. This announcement is crucial for shareholders as it determines the denominator for notifying changes in their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.

Smith+Nephew to Announce Q2 and H1 2025 Results on August 5
Jul 21, 2025

Smith+Nephew announced that it will release its second quarter and first half 2025 financial results on August 5, 2025. This announcement is significant as it provides insights into the company’s financial performance and strategic positioning in the medical technology industry. The results will be followed by a conference call for financial analysts, highlighting the company’s commitment to transparency and engagement with stakeholders.

Smith & Nephew Executives Purchase Shares in Employee Stock Plan
Jul 11, 2025

On July 10, 2025, Smith & Nephew plc reported transactions involving the purchase of American Depository Shares by key executives as part of the company’s Employee Stock Purchase Plan. This notification, made in compliance with the UK Market Abuse Regulation, highlights the involvement of top management in the company’s stock, potentially indicating confidence in the company’s future performance and aligning management interests with those of shareholders.

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.Date of analysis: Oct 08, 2025