Smith & Nephew plc (SN) is a leading medical devices business based in the UK. It opened the day at 1547.5p after a previous close of 1532.5p. During the day the price has varied from a low of 1527p to a high of 1568.7856p. The latest price was 1534.5p (25 minute delay). Smith-and-Nephew is listed on the London Stock Exchange (LSE) and employs 17,500 staff. All prices are listed in pence sterling.
Since the stock market crash in March caused by coronavirus, Smith-and-Nephew's share price has had significant negative movement.
Its last market close was 1505.5p, which is 21.75% down on its pre-crash value of 1924p and 42.70% up on the lowest point reached during the March crash when the shares fell as low as 1055.005p.
If you had bought £1,000 worth of Smith-and-Nephew shares at the start of February 2020, those shares would have been worth £665.93 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £821.10.
|52-week range||1033.2897p - 1939.7351p|
|50-day moving average||1503.3677p|
|200-day moving average||1526.824p|
|Wall St. target price||18.49p|
|Dividend yield||0.3p (1.95%)|
|Earnings per share (TTM)||44.6p|
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
|1 month (2020-12-22)||-1.41%|
|3 months (2020-10-22)||5.39%|
|6 months (2020-07-22)||-6.09%|
Valuing Smith-and-Nephew stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Smith-and-Nephew's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Smith-and-Nephew's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 34x. In other words, Smith-and-Nephew shares trade at around 34x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Smith-and-Nephew's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.5075. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Smith-and-Nephew's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Smith-and-Nephew's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £957 million.
The EBITDA is a measure of a Smith-and-Nephew's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||£4.7 billion|
|Operating margin TTM||11.33%|
|Gross profit TTM||£3.8 billion|
|Return on assets TTM||3.59%|
|Return on equity TTM||7.89%|
|Market capitalisation||£13.4 billion|
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Smith-and-Nephew.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 33.11
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Smith-and-Nephew's overall score of 33.11 (as at 01/01/2019) is nothing to write home about – landing it in it in the 55th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Smith-and-Nephew is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 4.38/100
Smith-and-Nephew's environmental score of 4.38 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Smith-and-Nephew is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 20.04/100
Smith-and-Nephew's social score of 20.04 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Smith-and-Nephew is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 9.18/100
Smith-and-Nephew's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that Smith-and-Nephew is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, Smith-and-Nephew scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Smith-and-Nephew has, for the most part, managed to keep its nose clean.
|Total ESG score||33.11|
|Total ESG percentile||55.04|
|Environmental score percentile||5|
|Social score percentile||5|
|Governance score percentile||5|
|Level of controversy||2|
Dividend payout ratio: 83.45% of net profits
Recently Smith-and-Nephew has paid out, on average, around 83.45% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.95% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Smith-and-Nephew shareholders could enjoy a 1.95% return on their shares, in the form of dividend payments. In Smith-and-Nephew's case, that would currently equate to about 0.3p per share.
Smith-and-Nephew's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 1 October 2020 (the "ex-dividend date").
Smith-and-Nephew's shares were split on a 9:11 basis on 7 August 2000. So if you had owned 11 shares the day before before the split, the next day you'd have owned 9 shares. This wouldn't directly have changed the overall worth of your Smith-and-Nephew shares – just the quantity. However, indirectly, the new 22.2% higher share price could have impacted the market appetite for Smith-and-Nephew shares which in turn could have impacted Smith-and-Nephew's share price.
Over the last 12 months, Smith-and-Nephew's shares have ranged in value from as little as 1033.2897p up to 1939.7351p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Smith-and-Nephew's is 0.3721. This would suggest that Smith-and-Nephew's shares are less volatile than average (for this exchange).
Smith & Nephew plc develops, manufactures, and sells medical devices worldwide. The company offers knee implant products for specialized knee replacement procedures; hip implants for the reconstruction of hip joints; and trauma and extremities products that include internal and external devices used in the stabilization of severe fractures and deformity correction procedures. It also provides sports medicine joint repair products for surgeons, including an array of instruments, technologies, and implants necessary to perform minimally invasive surgery of the joints, such as the repair of soft tissue injuries and degenerative conditions of the knee, hip, and shoulder, as well as meniscal repair systems. In addition, the company offers arthroscopic enabling technologies comprising fluid management equipment for surgical access, high definition cameras, digital image capture, scopes, light sources, and monitors to assist with visualization inside the joints, radio frequency, electromechanical and mechanical tissue resection devices, and hand instruments for removing damaged tissue; and ear, nose, and throat solutions. Further, it provides advanced wound care products for the treatment and prevention of acute and chronic wounds, which comprise leg, diabetic and pressure ulcers, burns, and post-operative wounds; advanced wound bioactives, including biologics and other bioactive technologies for debridement and dermal repair/regeneration, as well as regenerative medicine products including skin, bone graft, and articular cartilage substitutes; and advanced wound devices, such as traditional and single-use negative pressure wound therapy, and hydrosurgery systems. It primarily serves the healthcare providers. Smith & Nephew plc was founded in 1856 and is headquartered in Watford, the United Kingdom.
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