Smith & Nephew Snats (SNN) AI Stock Analysis

• Market Cap: $12.85B
• Dividend Yield: 3.15%
• Average Volume (3M): 628.13K
• Price to Earnings (P/E): 31.1
• Beta (1Y): 0.66
• Revenue Growth: 4.58%
• EPS Growth: 55.99%
• Country: US
• Employees: 17,349
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Devices
• EPS (TTM): 0.94
• Shares Outstanding: 437,972,660
• 10 Day Avg. Volume: 805,639
• 30 Day Avg. Volume: 628,134
• PEG Ratio: -1.81
• Price to Book (P/B): 4.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 213.92
• Enterprise Value/Market Cap: 2.03
• Enterprise Value/Revenue: 1.54
• Enterprise Value/Gross Profit: 6.44
• Enterprise Value/Ebitda: 7.64
• 1Y Price Target: $28.63
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: $35.00 ▲(22.25%Upside)

Smith & Nephew Snats is well-positioned due to strong financial performance and positive earnings call sentiment, highlighting growth and strategic execution. The technical analysis indicates a strong upward trend, although overbought conditions may pose short-term risks. The high P/E ratio suggests potential overvaluation, but the dividend yield adds some appeal for income-focused investors.

Positive Factors

Emerging Markets Growth

SNN notes growth in the other emerging markets was much stronger at +14.7%.

Quarterly Performance

SNN delivered a solid Q1 overall, slightly beating consensus and maintaining its guidance through the P&L.

Negative Factors

China Market Challenges

China remains a key hurdle in Ortho and Sports Medicine until mid-year when SNN believes Ortho inventory levels should normalize and Sports Med VBP should lap.

US Tariffs Impact

SNN anticipates a $15-$20M impact from potential US tariffs but expects to absorb this range into its current guidance.

Smith & Nephew Snats Business Overview & Revenue Model

Company Description

Smith & Nephew is a global medical technology company headquartered in the United Kingdom, operating in the healthcare sector. The company specializes in developing, manufacturing, and marketing advanced medical devices with a focus on orthopedics, wound management, and sports medicine. Smith & Nephew's core products include joint reconstruction implants, trauma fixation devices, surgical robotics, and wound care solutions, serving healthcare professionals and patients worldwide.

How the Company Makes Money

Smith & Nephew generates revenue primarily through the sale of its medical devices and technologies. The company's revenue model is driven by key segments: Orthopedics, which includes hip and knee implants as well as trauma and extremities products; Sports Medicine & ENT, offering products for minimally invasive surgery of the joints and ears, nose, and throat; and Advanced Wound Management, providing solutions for wound care and infection prevention. Revenue streams are bolstered by strategic partnerships with healthcare providers, hospitals, and distributors, as well as investments in research and development to drive innovation. Additionally, Smith & Nephew's global presence allows it to capitalize on diverse markets, leveraging its extensive sales network to reach customers in over 100 countries.

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

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

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

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.81B	5.55B	5.21B	5.21B	4.56B
	Gross Profit
4.05B	3.82B	3.67B	3.67B	3.16B
	EBIT
657.00M	425.00M	315.00M	593.00M	295.00M
	EBITDA
1.24B	979.00M	943.00M	1.24B	866.00M
	Net Income Common Stockholders
412.00M	263.00M	223.00M	524.00M	448.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
619.00M	302.00M	350.00M	1.29B	1.76B
	Total Assets
10.35B	9.99B	9.97B	10.92B	11.01B
	Total Debt
3.32B	3.08B	2.87B	3.34B	3.69B
	Net Debt
2.70B	2.78B	2.52B	2.05B	1.93B
	Total Liabilities
5.09B	4.77B	4.71B	5.35B	5.73B
	Stockholders Equity
5.26B	5.22B	5.26B	5.57B	5.28B
Cash Flow		Free Cash Flow
606.00M	181.00M	110.00M	469.00M	492.00M
	Operating Cash Flow
987.00M	608.00M	468.00M	877.00M	935.00M
	Investing Cash Flow
-569.00M	-448.00M	-472.00M	-691.00M	-606.00M
	Financing Cash Flow
-86.00M	-200.00M	-926.00M	-645.00M	1.16B

Smith & Nephew Snats Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNN, the sentiment is Positive. The current price of 28.63 is below the 20-day moving average (MA) of 29.30, above the 50-day MA of 28.02, and above the 200-day MA of 27.13, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 16.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNN.

Smith & Nephew Snats Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNN	80 Outperform	$12.85B	31.05	7.82%	3.15%	4.58%	55.99%
STE	80 Outperform	$23.72B	38.01	9.46%	0.95%	0.32%	64.36%
PODD	76 Outperform	$21.58B	55.17	37.92%	―	23.49%	71.25%
ZBH	70 Outperform	$18.23B	20.42	7.31%	1.04%	3.30%	-2.39%
GMED	68 Neutral	$7.97B	44.03	4.63%	―	32.26%	112.87%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%
PHG	50 Neutral	$21.76B	―	-7.10%	3.88%	-0.76%	-55.03%