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Smiths Group plc (SMIN) is a leading specialty industrial machinery business based in the UK. It opened the day at 1418.5p after a previous close of 1401.5p. During the day the price has varied from a low of 1372p to a high of 1418.5p. The latest price was 1387p (25 minute delay). Smiths Group is listed on the London Stock Exchange (LSE) and employs 22,000 staff. All prices are listed in pence sterling.
Since the stock market crash in March caused by coronavirus, Smiths Group's share price has had significant negative movement.
Its last market close was 1385.5p, which is 20.62% down on its pre-crash value of 1745.5p and 75.38% up on the lowest point reached during the March crash when the shares fell as low as 790p.
If you had bought £1,000 worth of Smiths Group shares at the start of February 2020, those shares would have been worth £524.83 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 £815.92.
|52-week range||790p - 1778.5p|
|50-day moving average||1291.9286p|
|200-day moving average||1426.8057p|
|Wall St. target price||1664.33p|
|Dividend yield||0.46p (2.93%)|
|Earnings per share (TTM)||62.8p|
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 week (2020-06-29)||6.86%|
|1 month (2020-06-05)||-3.34%|
|3 months (2020-04-06)||27.60%|
|6 months (2020-01-06)||-18.36%|
|1 year (2019-07-05)||-13.39%|
|2 years (2018-07-06)||-18.24%|
|3 years (2017-07-06)||-13.64%|
|5 years (2015-07-06)||21.56%|
Valuing Smiths Group stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Smiths Group's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Smiths Group's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 52x. In other words, Smiths Group shares trade at around 52x 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.
Smiths Group's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.0369. 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 Smiths Group's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Smiths Group's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £480 million.
The EBITDA is a measure of a Smiths Group's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||£2.6 billion|
|Operating margin TTM||14.41%|
|Gross profit TTM||£1.1 billion|
|Return on assets TTM||4.71%|
|Return on equity TTM||4.54%|
|Market capitalisation||£5 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 Smiths Group.
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: 41.95
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Smiths Group's overall score of 41.95 (as at 03/01/2020) is pretty weak – landing it in it in the 84th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Smiths Group 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: 19.91/100
Smiths Group's environmental score of 19.91 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Smiths Group is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 17.94/100
Smiths Group's social score of 17.94 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Smiths Group is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 13.61/100
Smiths Group's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that Smiths Group 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. Smiths Group scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Smiths Group has, for the most part, managed to keep its nose clean.
|Total ESG score||41.95|
|Total ESG percentile||84.4|
|Environmental score percentile||5|
|Social score percentile||5|
|Governance score percentile||5|
|Level of controversy||2|
Dividend payout ratio: 185.83% of net profits
Recently Smiths Group has paid out, on average, around 185.83% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.93% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Smiths Group shareholders could enjoy a 2.93% return on their shares, in the form of dividend payments. In Smiths Group's case, that would currently equate to about 0.46p per share.
Smiths Group'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 17 October 2019 (the "ex-dividend date").
Smiths Group's shares were split on a 2:3 basis on 18 June 2007. So if you had owned 3 shares the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Smiths Group shares – just the quantity. However, indirectly, the new 50% higher share price could have impacted the market appetite for Smiths Group shares which in turn could have impacted Smiths Group's share price.
Over the last 12 months, Smiths Group's shares have ranged in value from as little as 790p up to 1778.5p. 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 Smiths Group's is 0.7119. This would suggest that Smiths Group's shares are less volatile than average (for this exchange).
Smiths Group plc operates as a technology company severing the medical technology, security and defense, general industrial, energy, and space and aerospace markets worldwide. It operates in five divisions: John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect, and Flex-Tek. The John Crane division offers mechanical seals, seal support systems, hydrodynamic bearings, packing materials, power transmission couplings, and specialized filtration systems. The Smiths Medical division provides specialty medical devices and consumables, including infusion systems, vascular access products, patient airway and temperature management equipment, and specialty devices in the areas of diagnostics and emergency patient transport. It serves hospitals, surgery centers, clinics, and home care providers, as well as other medical device manufacturers. The Smiths Detection division offers sensors and systems that detect and identify explosives, narcotics, weapons, chemical agents, biohazards, and contraband. The Smiths Interconnect division provides specialized electronic and radio frequency board-level and waveguide devices, connectors, cables, test sockets, and sub-systems for applications in the security and defense, medical, general industrial, and space and aerospace markets. The Flex-Tek division offers engineered components that heat and move fluids and gases for the aerospace, medical, industrial, construction, and domestic appliance markets. The company was formerly known as Smiths Industries and changed its name to Smiths Group plc in 2000. Smiths Group plc was founded in 1851 and is headquartered in London, the United Kingdom.
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